Acrysil reports 31.6% revenue growth in FY2016 and 2.3 pp EBITDA Margin decline from 19.5% to 17.1%
23-05-2016 • About Acrysil (
$ACRYSIL) • By InTwits
Acrysil reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Acrysil is a fast growth stock: FY2016 revenue growth was 31.6%, 5 year revenue CAGR was 24.8% at FY2016 ROIC 16.9%
- Acrysil has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: ₹6m in FY2016, ₹45m in FY2015, ₹96m in FY2014, ₹142m in FY2013, ₹140m in FY2012
- The company has highly profitable business model: ROIC is 16.9%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 1.0x
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 jumped on 31.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 15.9% to 9.5% in FY2016. During the last 5 years EBITDA Margin topped in FY2015 at 19.5%.
Net Income margin showed almost no change in FY2016. During the last 5 years Net Income margin topped in FY2014 at 7.3% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Acrysil had CAPEX/Revenue of 5.0%. Acrysil showed decline in CAPEX/Revenue of 5.9 pp from 11.0% in FY2013 to 5.0% in FY2016. It's average CAPEX/Revenue for the last three years was 8.0%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2013 at 11.0% and was declining since that time.
Return on investment
The company operates at good ROIC (16.9%) and ROE (18.0%). ROIC decreased on 4.2 pp from 21.0% to 16.9% in FY2016. ROE decreased on 5.1 pp from 23.1% to 18.0% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 21.0%. During the last 5 years ROE topped in FY2014 at 25.0% and was declining since that time.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 2.7x to 1.4x in FY2016. Debt decreased on 7.8% while cash jumped on 365%.
Acrysil has short term refinancing risk: cash is only 61.8% of short term debt.
Financial and operational results
Acrysil ($ACRYSIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 614 | 796 | 1,065 | 1,271 | 1,672 | 31.6% |
| EBITDA | 76 | 133 | 186 | 248 | 287 | 15.8% |
| Net Income | 16 | 48 | 77 | 87 | 109 | 25.0% |
Balance Sheet
|
|---|
| Cash | 18 | 20 | 21 | 60 | 281 | 365.3% |
| Short Term Debt | 190 | 263 | 282 | 463 | 455 | -1.8% |
| Long Term Debt | 45 | 48 | 110 | 266 | 218 | -18.3% |
Cash flow
|
|---|
| Capex | 48 | 87 | 102 | 118 | 84 | -28.8% |
Ratios
|
|---|
| Revenue growth | 11.3% | 29.6% | 33.8% | 19.4% | 31.6% | |
| EBITDA growth | -28.5% | 75.7% | 39.3% | 33.2% | 15.8% | |
|
|---|
| EBITDA Margin | 12.4% | 16.8% | 17.5% | 19.5% | 17.1% | -2.3% |
| Net Income Margin | 2.7% | 6.1% | 7.3% | 6.9% | 6.5% | -0.3% |
| CAPEX, % of revenue | 7.8% | 11.0% | 9.6% | 9.3% | 5.0% | -4.3% |
|
|---|
| ROIC | 7.7% | 16.2% | 20.2% | 21.0% | 16.9% | -4.2% |
| ROE | 6.6% | 18.4% | 25.0% | 23.1% | 18.0% | -5.1% |
| Net Debt/EBITDA | 2.9x | 2.2x | 2.0x | 2.7x | 1.4x | -1.3x |
Peers in Plastic Products
Below we provide Acrysil benchmarking against other companies in Plastic Products 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 |
|---|
| Astral Poly Technik ($ASTRAL) | 41.7% | 41.6% | 30.8% | 32.4% | - |
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | - |
| Wim Plast ($WIMPLAST) | 27.5% | 23.1% | 19.5% | 23.5% | - |
| Shaily Engineering Plastics ($SHAILY) | - | -16.0% | 23.3% | 19.2% | 25.5% |
| Fenoplast ($FENOPLAS) | 11.4% | -1.1% | 12.6% | 8.5% | - |
| |
|---|
| Median (11 companies) | 20.9% | 23.4% | 12.6% | 8.4% | 11.5% |
|---|
| Acrysil ($ACRYSIL) | - | 29.6% | 33.8% | 19.4% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | - |
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | - |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | - |
| Bloom Dekor ($BLOOM) | - | - | - | 11.8% | - |
| |
|---|
| Median (14 companies) | 12.2% | 11.2% | 11.1% | 10.7% | 10.9% |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | 17.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | - | 10.7% | 17.2% | 13.0% |
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | 5.0% |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | - |
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | - |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | - |
| |
|---|
| Median (7 companies) | 10.8% | 8.1% | 6.9% | 6.0% | 9.0% |
|---|
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | - |
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | - |
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | - |
| Jain Irrigation Systems ($JISLJALEQS) | 13.4% | 8.3% | 9.0% | 8.6% | - |
| |
|---|
| Median (21 companies) | 10.2% | 10.9% | 11.0% | 12.7% | 12.7% |
|---|
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | 16.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | 4.5x |
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | - |
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | - |
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | - |
| |
|---|
| Median (14 companies) | 2.1x | 2.3x | 0.4x | 0.0x | 0.0x |
|---|
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | 1.4x |
