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Balaji Amines Net Income jumped on 68.1% and Revenue increased on 3.9%

21-05-2016 • About Balaji Amines ($BALAMINES) • By InTwits

Balaji Amines reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
  • Balaji Amines has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's a lot of higher than industry average of 6.4%.
  • CAPEX is quite volatile: ₹322m in FY2016, ₹81m in FY2015, ₹530m in FY2014, ₹899m in FY2013, ₹595m in FY2012
  • The company has highly profitable business model: ROIC is 21.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Balaji Amines's Revenue increased on 3.9%. Revenue decline was accelerating on average at -6.4 pp per annum in FY2012-FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 9.2% to 7.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 14.3% and was growing since that time.

Net Income margin increased on 3.4 pp from 5.5% to 9.0% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 5.5% and was growing since that time.

Investments (CAPEX, working capital and M&A)


In FY2016 the company had CAPEX/Revenue of 5.0%. The company's CAPEX/Revenue dropped on 12.6 pp from 17.6% in FY2013 to 5.0% in FY2016. Average CAPEX/Revenue for the last three years was 5.0%.

Return on investment


The company operates at high and attractive ROIC (21.2%) and ROE (22.7%). ROIC increased on 4.7 pp from 16.5% to 21.2% in FY2016. ROE increased on 6.7 pp from 16.0% to 22.7% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 15.6% and was growing since that time. During the last 5 years ROE bottomed in FY2015 at 16.0%.

Leverage (Debt)


Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped on 1.0x from 2.2x to 1.1x in FY2016. Debt dropped on 33.9% while cash surged on 50.6%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 2.6x and was declining since that time.

Balaji Amines has short term refinancing risk: cash is only 6.3% of short term debt.

Financial and operational results


Balaji Amines ($BALAMINES) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue4,4955,1186,1016,1886,4313.9%
EBITDA7937938741,0181,26724.5%
Net Income35631233534357668.1%
Balance Sheet
Cash2110426450.6%
Short Term Debt1,1111,0561,3951,4851,012-31.9%
Long Term Debt8611,037860748464-38.0%
Cash flow
Capex59589953081322296.7%
Ratios
Revenue growth29.6%13.9%19.2%1.4%3.9%
EBITDA growth25.3%0.1%10.1%16.5%24.5%
EBITDA Margin17.6%15.5%14.3%16.4%19.7%3.3%
Net Income Margin7.9%6.1%5.5%5.5%9.0%3.4%
CAPEX, % of revenue13.2%17.6%8.7%1.3%5.0%3.7%
ROIC19.3%16.1%15.6%16.5%21.2%4.7%
ROE27.7%19.7%18.0%16.0%22.7%6.7%
Net Debt/EBITDA2.5x2.6x2.6x2.2x1.1x-1.0x

Peers in Commodity Chemicals


Below we provide Balaji Amines 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)12.7%9.7%10.6%6.3%-0.0%
Balaji Amines ($BALAMINES)-13.9%19.2%1.4%3.9%


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%11.8%
Balaji Amines ($BALAMINES)17.6%15.5%14.3%16.4%19.7%


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 ($AARTIIND)8.0%11.2%11.0%10.4%16.8%
Alkyl Amines Chemicals ($ALKYLAMINE)5.1%6.6%5.9%8.6%7.3%
Sukhjit Starch & Chemicals ($SUKHJITS)15.7%9.4%5.4%5.4%-
 
Median (21 companies)5.2%6.3%5.4%3.3%5.4%
Balaji Amines ($BALAMINES)13.2%17.6%8.7%1.3%5.0%


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%-
Alkyl Amines Chemicals ($ALKYLAMINE)16.0%18.7%25.0%23.7%24.7%
Aarti Industries ($AARTIIND)15.9%19.1%17.2%17.9%19.3%
Transpek Industry ($TRANSPEK)-1.7%14.2%11.0%17.8%-
 
Median (60 companies)9.0%9.5%8.9%7.9%19.3%
Balaji Amines ($BALAMINES)19.3%16.1%15.6%16.5%21.2%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Iol Chemicals & Pharmaceuticals ($IOLCP)5.8x4.5x3.7x35.4x8.8x
India Glycols ($INDIAGLYCO)4.8x3.7x8.5x14.2x-
Godrej Industries ($GODREJIND)9.9x5.7x7.9x10.7x-
Kanoria Chemicals & Industries ($KANORICHEM)5.2x9.6x3.5x9.4x-
Garware Polyester ($GARWARPOLY)2.2x3.8x4.0x5.2x-
 
Median (37 companies)2.6x3.2x0.8x0.9x0.0x
Balaji Amines ($BALAMINES)2.5x2.6x2.6x2.2x1.1x


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