Alkyl Amines Chemicals CAPEX dropped on 13.8% while Revenue increased slightly on 1.5%
20-05-2016 • About Alkyl Amines Chemicals (
$ALKYLAMINE) • By InTwits
Alkyl Amines Chemicals reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Alkyl Amines Chemicals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 6.2%
- CAPEX is quite volatile: ₹353m in FY2016, ₹410m in FY2015, ₹263m in FY2014, ₹240m in FY2013, ₹147m in FY2012
- The company has highly profitable business model: ROIC is 24.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 1.5%. Revenue decline was accelerating on average at -6.1 pp per annum in FY2012-FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 18.3% to 19.8% in FY2016. EBITDA Margin grew at 1.0 pp per annum in the last 5 years.
Net Income margin increased slightly on 0.87 pp from 9.5% to 10.3% in FY2016. Net Income margin followed a growing trend at 1.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Alkyl Amines Chemicals's CAPEX/Revenue was 7.3% in FY2016. Alkyl Amines Chemicals's CAPEX/Revenue increased slightly on 0.74 pp from 6.6% in FY2013 to 7.3% in FY2016. It's average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at high and attractive ROIC (24.7%) and ROE (25.4%). ROIC increased slightly on 1.0 pp from 23.7% to 24.7% in FY2016. ROE decreased slightly on 1.6 pp from 27.0% to 25.4% in FY2016. ROIC grew at 2.2 pp per annum in FY2012-FY2016. During the last 5 years ROE topped in FY2014 at 32.5% and was declining since that time.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.3x to 1.1x in FY2016. Debt decreased on 5.7% while cash dropped on 11.5%. Net Debt/EBITDA stuck to a declining trend at -0.4x per annum in the last 5 years.
Alkyl Amines Chemicals has short term refinancing risk: cash is only 7.5% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 7.5x and P/E 12.3x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 11.9x with the industry average at 22.8x.
Financial and operational results
Alkyl Amines Chemicals ($ALKYLAMINE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,880 | 3,659 | 4,461 | 4,764 | 4,836 | 1.5% |
| EBITDA | 457 | 585 | 849 | 874 | 956 | 9.4% |
| Net Income | 176 | 242 | 433 | 451 | 500 | 10.9% |
Balance Sheet
|
|---|
| Cash | 49 | 50 | 117 | 56 | 49 | -11.5% |
| Short Term Debt | 711 | 855 | 850 | 605 | 652 | 7.8% |
| Long Term Debt | 523 | 600 | 648 | 560 | 447 | -20.2% |
Cash flow
|
|---|
| Capex | 147 | 240 | 263 | 410 | 353 | -13.8% |
Ratios
|
|---|
| Revenue growth | 22.1% | 27.0% | 21.9% | 6.8% | 1.5% | |
| EBITDA growth | 46.1% | 27.9% | 45.1% | 2.9% | 9.4% | |
|
|---|
| EBITDA Margin | 15.9% | 16.0% | 19.0% | 18.3% | 19.8% | 1.4% |
| Net Income Margin | 6.1% | 6.6% | 9.7% | 9.5% | 10.3% | 0.9% |
| CAPEX, % of revenue | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% | -1.3% |
|
|---|
| ROIC | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% | 1.0% |
| ROE | 19.2% | 22.6% | 32.5% | 27.0% | 25.4% | -1.6% |
| Net Debt/EBITDA | 2.6x | 2.4x | 1.6x | 1.3x | 1.1x | -0.2x |
Peers in Commodity Chemicals
Below we provide Alkyl Amines Chemicals benchmarking against other companies in Commodity Chemicals industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | 354.1% | -27.9% | -83.3% | 408.0% | - |
| Jayshree Chemicals ($JAYCH) | 288.9% | 17.5% | -75.2% | 262.3% | - |
| Jagran Production ($JAGPRO) | 589.4% | 4.4% | 514.9% | 192.3% | - |
| Shree Hari Chemicals Export ($SHHARICH) | -2.5% | -78.0% | 299.5% | 111.6% | - |
| Jindal Poly Films ($JINDPOLBBPH) | -17.2% | -6.3% | 131.7% | 46.9% | - |
| |
|---|
| Median (37 companies) | 19.0% | 9.7% | 10.6% | 5.6% | -1.6% |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | - | 27.0% | 21.9% | 6.8% | 1.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | - | - | - | 104.7% | - |
| Mysore Petro Chemicals ($MYSORPETRO) | - | - | - | 47.1% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 26.8% | 27.1% | 23.6% | 21.9% | - |
| Indo Borax & Chemicals ($INDOBORAX) | - | - | - | 21.3% | - |
| Chemfab Alkalis ($CHEMFALKAL) | 22.3% | 32.9% | 24.2% | 19.8% | 23.2% |
| |
|---|
| Median (50 companies) | 9.6% | 8.3% | 8.5% | 6.6% | 10.8% |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | 15.9% | 16.0% | 19.0% | 18.3% | 19.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 25.1% | 6.0% | 13.4% | 40.3% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 136.9% | 24.2% | 30.8% | 15.0% | - |
| Aarti Industries ($AARTIIND) | 8.0% | 11.2% | 11.0% | 10.4% | 16.8% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 15.7% | 9.4% | 5.4% | 5.4% | - |
| Godrej Industries ($GODREJIND) | 1.5% | 9.9% | 5.4% | 5.4% | - |
| |
|---|
| Median (21 companies) | 5.3% | 7.0% | 5.4% | 3.2% | 5.0% |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bodal Chemicals ($BODALCHEM) | -1.3% | 3.3% | 39.0% | 38.3% | - |
| Elantas Beck India ($ELANTAS) | 20.4% | 33.9% | 31.0% | 36.6% | - |
| Aarti Industries ($AARTIIND) | 15.9% | 19.1% | 17.2% | 17.9% | 19.3% |
| Transpek Industry ($TRANSPEK) | -1.7% | 14.2% | 11.0% | 17.8% | - |
| Balaji Amines ($BALAMINES) | 19.3% | 16.1% | 15.6% | 16.5% | - |
| |
|---|
| Median (60 companies) | 9.0% | 9.5% | 8.9% | 7.9% | 18.6% |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.8x | 4.5x | 3.7x | 35.4x | 8.8x |
| India Glycols ($INDIAGLYCO) | 4.8x | 3.7x | 8.5x | 14.2x | - |
| Godrej Industries ($GODREJIND) | 9.9x | 5.7x | 7.9x | 10.7x | - |
| Kanoria Chemicals & Industries ($KANORICHEM) | 5.2x | 9.6x | 3.5x | 9.4x | - |
| Garware Polyester ($GARWARPOLY) | 2.2x | 3.8x | 4.0x | 5.2x | - |
| |
|---|
| Median (37 companies) | 2.6x | 3.2x | 0.8x | 0.9x | 0.0x |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | 2.6x | 2.4x | 1.6x | 1.3x | 1.1x |
