Kothari Products EBITDA surged on 18.4% and Revenue increased on 3.5%
20-05-2016 • About Kothari Products (
$KOTHARIPRO) • By InTwits
Kothari Products reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.3% in FY2016, 2.0% in FY2015, 5.9% in FY2014, 4.4% in FY2013, 5.4% in FY2012
- Kothari Products has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has business model with average profitability: ROIC is 11.7%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.5%. Revenue followed a declining trend in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.6 pp from 16.5% to 20.1% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Kothari Products had CAPEX/Revenue of 0.052%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.088%.
Return on investment
The company operates at low ROIC (11.7%) and ROE (8.7%). ROIC increased slightly on 1.0 pp from 10.6% to 11.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 2.5x. Net Debt / EBITDA jumped on 0.1x from 1.4x to 1.5x in FY2016. Debt surged on 46.3% while cash jumped on 81.6%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2014 at 0.4x and was growing since that time.
Kothari Products has short term refinancing risk: cash is only 47.1% of short term debt.
Financial and operational results
Kothari Products ($KOTHARIPRO) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 39,394 | 50,437 | 57,482 | 64,732 | 66,993 | 3.5% |
| EBITDA | 2,141 | 2,196 | 3,379 | 1,325 | 1,569 | 18.4% |
| Net Income | 610 | 871 | 631 | 744 | 782 | 5.2% |
Balance Sheet
|
|---|
| Cash | 365 | 1,983 | 1,720 | 815 | 1,481 | 81.6% |
| Short Term Debt | 1,819 | 2,689 | 2,549 | 1,921 | 3,141 | 63.5% |
| Long Term Debt | 1,082 | 609 | 689 | 726 | 733 | 1.0% |
Cash flow
|
|---|
| Capex | 1,005 | 54 | 97 | 29 | 35 | 17.7% |
Ratios
|
|---|
| Revenue growth | 145.4% | 28.0% | 14.0% | 12.6% | 3.5% | |
| EBITDA growth | 301.2% | 2.6% | 53.9% | -60.8% | 18.4% | |
|
|---|
| EBITDA Margin | 5.4% | 4.4% | 5.9% | 2.0% | 2.3% | 0.3% |
| Net Income Margin | 1.5% | 1.7% | 1.1% | 1.1% | 1.2% | 0.0% |
| CAPEX, % of revenue | 2.5% | 0.1% | 0.2% | 0.0% | 0.1% | 0.0% |
|
|---|
| ROIC | 23.4% | 20.0% | 28.3% | 10.6% | 11.7% | 1.0% |
| ROE | 9.5% | 12.4% | 8.2% | 9.0% | 8.7% | -0.2% |
| Net Debt/EBITDA | 1.2x | 0.6x | 0.4x | 1.4x | 1.5x | 0.1x |
Peers in Comm.Trading & Distribution
Below we provide Kothari Products benchmarking against other companies in Comm.Trading & Distribution 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 |
|---|
| Shri Krishna Prasadam ($SKP) | 69.6% | 57.3% | 1,074.7% | 148.2% | - |
| Sunil Industries ($SUNILTX) | 15.9% | 57.2% | 12.1% | 59.6% | - |
| Gagan Polycot India ($GAGANPO) | -59.4% | 76.3% | 18.2% | 43.2% | - |
| Ptl Enterprises ($PTL) | - | 12.6% | 17.7% | 35.1% | -2.4% |
| Parker Agrochem Exports ($PARKERAC) | -77.2% | 1,542.3% | 39.1% | 33.1% | - |
| |
|---|
| Median (19 companies) | 4.1% | 13.0% | 12.9% | 10.9% | -2.4% |
|---|
| Kothari Products ($KOTHARIPRO) | - | 28.0% | 14.0% | 12.6% | 3.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hexa Tradex ($HEXATRADEX) | - | - | - | 48.1% | - |
| Indiabulls Wholesale Services ($IBWSL) | 30.8% | 25.9% | 19.4% | 21.4% | 27.6% |
| Bombay Cycle & Motor Agency ($BOMBCYC) | - | - | - | 19.5% | - |
| Ptl Enterprises ($PTL) | 26.6% | 22.7% | 21.6% | 18.5% | 20.9% |
| Remi Elektrotechnik ($REMIELEK) | - | - | - | 15.1% | - |
| |
|---|
| Median (37 companies) | 2.8% | 2.7% | 2.0% | 2.4% | 20.9% |
|---|
| Kothari Products ($KOTHARIPRO) | 5.4% | 4.4% | 5.9% | 2.0% | 2.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ptl Enterprises ($PTL) | 5.0% | 4.5% | 2.4% | 4.2% | 5.8% |
| Maxwell Industries ($MAXWELL) | 0.9% | 1.9% | 2.4% | 1.8% | - |
| Redington (India) ($REDINGTON) | 0.2% | 0.7% | 0.2% | 0.2% | - |
| Mmtc ($MMTC) | 0.0% | 0.1% | 0.1% | 0.1% | - |
| |
|---|
| Median (4 companies) | 0.3% | 0.4% | 0.2% | 1.0% | 5.8% |
|---|
| Kothari Products ($KOTHARIPRO) | 2.5% | 0.1% | 0.2% | 0.0% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ptl Enterprises ($PTL) | 18.5% | 19.5% | 21.1% | 22.1% | 12.8% |
| Redington (India) ($REDINGTON) | 17.2% | 16.0% | 16.3% | 15.3% | - |
| Risa International ($RISAINTL) | - | -0.2% | 14.8% | 11.9% | - |
| Maxwell Industries ($MAXWELL) | 9.0% | 6.6% | 9.6% | 11.2% | - |
| Edynamics Solutions ($EDSL) | 0.8% | 0.9% | 0.2% | 0.2% | - |
| |
|---|
| Median (52 companies) | 4.5% | 4.7% | 8.2% | 11.5% | 12.8% |
|---|
| Kothari Products ($KOTHARIPRO) | 23.4% | 20.0% | 28.3% | 10.6% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Maxwell Industries ($MAXWELL) | 3.7x | 5.8x | 3.5x | 3.3x | - |
| Redington (India) ($REDINGTON) | 2.6x | 2.6x | 1.7x | 1.9x | - |
| Ptl Enterprises ($PTL) | 2.2x | 2.0x | 2.0x | 1.2x | 0.5x |
| Rama Vision ($RAMAVISION) | -1.8x | 0.3x | 0.0x | 0.0x | - |
| Ph Capital ($PHCAP) | - | - | 18.4x | 0.0x | - |
| |
|---|
| Median (29 companies) | 1.8x | 1.9x | 0.0x | 0.0x | 0.0x |
|---|
| Kothari Products ($KOTHARIPRO) | 1.2x | 0.6x | 0.4x | 1.4x | 1.5x |
