Keltech Energies reports 6.3% revenue decline in FY2016 and 0.73 pp EBITDA Margin growth from 6.1% to 6.8%
20-05-2016 • About Keltech Energies (
$KELENRG) • By InTwits
Keltech Energies reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is 1.1x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Keltech Energies's Revenue decreased on 6.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.73 pp from 6.1% to 6.8% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
Keltech Energies's CAPEX/Revenue was 4.1% in FY2016. CAPEX/Revenue increased on 4.1 pp from in FY2013 to 4.1% in FY2016. Keltech Energies invested a big chunk of EBITDA (60.5%) to CAPEX which didn't stop revenue from falling.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA jumped1.1x from 0x to 1.1x in FY2016. Debt surged while cash jumped.
Keltech Energies has short term refinancing risk: cash is only 48.7% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 5.0x and P/E 12.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Keltech Energies ($KELENRG) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,785 | 1,546 | 1,540 | 1,916 | 1,794 | -6.3% |
| EBITDA | 100 | 97 | 124 | 117 | 123 | 4.8% |
| Net Income | 50 | 43 | 59 | 34 | 39 | 13.5% |
Balance Sheet
|
|---|
| Cash | 586 | 79 | 35 | | 35 | |
| Short Term Debt | 15 | 44 | 35 | | 72 | |
| Long Term Debt | 49 | 85 | 126 | | 100 | |
Cash flow
|
|---|
| Capex | 43 | | | | 74 | |
Ratios
|
|---|
| Revenue growth | 60.2% | -13.4% | -0.4% | 24.4% | -6.3% | |
| EBITDA growth | 139.2% | -3.5% | 28.7% | -5.8% | 4.8% | |
|
|---|
| EBITDA Margin | 5.6% | 6.2% | 8.1% | 6.1% | 6.8% | 0.7% |
| Net Income Margin | 2.8% | 2.8% | 3.9% | 1.8% | 2.2% | 0.4% |
| CAPEX, % of revenue | 2.4% | | | | 4.1% | |
|
|---|
| ROIC | 15.3% | 12.8% | 23.0% | | | |
| ROE | 10.4% | 8.2% | 19.1% | | | |
| Net Debt/EBITDA | -5.2x | 0.5x | 1.0x | 0.0x | 1.1x |
Peers in Specialty Chemicals
Below we provide Keltech Energies benchmarking against other companies in Specialty 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 |
|---|
| Kiri Industries ($KIRIINDUS) | 7.9% | -86.5% | 24.8% | 34.7% | - |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 14.1% | 4.7% | 19.5% | 30.0% | - |
| Dai-Ichi Karkaria ($DAICHI) | - | 31.4% | 45.4% | 22.8% | -36.4% |
| Nitta Gelatin India ($NITTAGELA) | - | 27.8% | -5.5% | 21.2% | -0.5% |
| Nocil ($NOCIL) | - | 1.8% | 22.3% | 21.1% | -1.6% |
| |
|---|
| Median (27 companies) | 17.4% | 14.1% | 13.7% | 9.8% | 0.1% |
|---|
| Keltech Energies ($KELENRG) | - | -13.4% | -0.4% | 24.4% | -6.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.8% | 22.7% | 24.9% | 32.8% |
| Indian Toners & Developers ($INDTONER) | - | - | - | 22.6% | - |
| Solar Industries India ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | 19.3% |
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| |
|---|
| Median (32 companies) | 10.7% | 12.8% | 10.6% | 10.8% | 15.8% |
|---|
| Keltech Energies ($KELENRG) | 5.6% | 6.2% | 8.1% | 6.1% | 6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Adi Finechem ($ADIFINCHM) | 7.3% | 4.8% | 12.6% | 16.9% | 9.0% |
| Anil ($ANILLTD) | - | 6.7% | 5.2% | 11.5% | 8.5% |
| Solar Industries India ($SOLARINDS) | 13.0% | 9.9% | 12.3% | 10.3% | 9.6% |
| Pidilite Industries ($PIDILITIND) | 5.2% | 2.9% | 4.4% | 8.5% | 3.8% |
| Oricon Enterprises ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| |
|---|
| Median (17 companies) | 5.2% | 4.6% | 4.4% | 5.1% | 8.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 29.6% | 26.2% | 30.6% | 34.8% | 32.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 11.1% | 17.8% | 24.2% | 29.5% | - |
| Pidilite Industries ($PIDILITIND) | 27.4% | 29.3% | 29.8% | 29.0% | 38.3% |
| Adi Finechem ($ADIFINCHM) | 30.6% | 29.8% | 46.4% | 26.3% | 20.6% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | - |
| |
|---|
| Median (35 companies) | 14.7% | 15.0% | 11.2% | 17.1% | 20.6% |
|---|
| Keltech Energies ($KELENRG) | 15.3% | 12.8% | 23.0% | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kiri Industries ($KIRIINDUS) | 8.2x | 31.3x | 10.6x | 7.7x | - |
| Jayant Agro-Organics ($JAYAGROGN) | 2.8x | 3.1x | 4.6x | 6.5x | 3.4x |
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | - |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | - |
| |
|---|
| Median (30 companies) | 1.5x | 1.7x | 1.7x | 0.0x | 0.0x |
|---|
| Keltech Energies ($KELENRG) | -5.2x | 0.5x | 1.0x | 0.0x | 1.1x |
