Dalmia Bharat Sugar And Industries reports 3,819% Net Income growth in 2016 and 9.6 pp EBITDA Margin growth from 9.9% to 19.4%
23-05-2016 • About Dalmia Bharat Sugar And Industries (
$DALMIASUG) • By InTwits
Dalmia Bharat Sugar And Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Dalmia Bharat Sugar And Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: ₹860m in FY2016, ₹503m in FY2015, ₹1,802m in FY2014, ₹1,460m in FY2013, ₹156m in FY2012
- The company has business model with low profitability: ROIC is 7.9%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 6.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dalmia Bharat Sugar And Industries's Revenue increased slightly on 1.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.4 pp from 26.7% to 21.3% in FY2016.
Net Income margin increased on 4.9 pp from 0.13% to 5.0% in FY2016.
Investments (CAPEX, working capital and M&A)
Dalmia Bharat Sugar And Industries's CAPEX/Revenue was 7.4% in FY2016. The company showed decline in CAPEX/Revenue of 7.3 pp from 14.6% in FY2013 to 7.4% in FY2016. Average CAPEX/Revenue for the last three years was 9.0%.
Return on investment
The company operates at good ROE (12.0%) while ROIC is low (7.9%). ROIC increased on 3.3 pp from 4.7% to 7.9% in FY2016. ROE jumped on 11.7 pp from 0.32% to 12.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.2x. Net Debt / EBITDA dropped on 2.9x from 6.9x to 4.0x in FY2016. Debt jumped on 17.7% while cash surged on 39.5%.
Dalmia Bharat Sugar And Industries has short term refinancing risk: cash is only 11.6% of short term debt.
Management team
Dalmia Bharat Sugar And Industries's CEO Gautam Dalmia has spent 10 years with the company.
Financial and operational results
Dalmia Bharat Sugar And Industries ($DALMIASUG) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,347 | 9,976 | 11,915 | 11,501 | 11,664 | 1.4% |
| EBITDA | 856 | 1,500 | 1,080 | 1,134 | 2,268 | 100.0% |
| Net Income | 9 | 184 | 31 | 15 | 584 | 3,819.5% |
Balance Sheet
|
|---|
| Cash | 719 | 214 | 440 | 326 | 454 | 39.5% |
| Short Term Debt | 3,465 | 4,428 | 2,852 | 3,564 | 3,907 | 9.6% |
| Long Term Debt | 3,639 | 3,430 | 5,267 | 4,609 | 5,710 | 23.9% |
Cash flow
|
|---|
| Capex | 156 | 1,460 | 1,802 | 503 | 860 | 70.8% |
Ratios
|
|---|
| Revenue growth | 9.8% | 35.8% | 19.4% | -3.5% | 1.4% | |
| EBITDA growth | 30.5% | 75.4% | -28.0% | 5.0% | 100.0% | |
|
|---|
| EBITDA Margin | 11.6% | 15.0% | 9.1% | 9.9% | 19.4% | 9.6% |
| Net Income Margin | 0.1% | 1.8% | 0.3% | 0.1% | 5.0% | 4.9% |
| CAPEX, % of revenue | 2.1% | 14.6% | 15.1% | 4.4% | 7.4% | 3.0% |
|
|---|
| ROIC | 3.6% | 6.0% | 4.4% | 4.7% | 7.9% | 3.3% |
| ROE | 0.2% | 4.1% | 0.7% | 0.3% | 12.0% | 11.7% |
| Net Debt/EBITDA | 7.5x | 5.1x | 7.1x | 6.9x | 4.0x | -2.9x |
Peers in Sugar
Below you can find Dalmia Bharat Sugar And Industries benchmarking vs. other companies in Sugar industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| K.M.Sugar Mills ($KMSUGAR) | -11.3% | 7.0% | 48.3% | 36.1% | - |
| Sbec Sugar ($SBECSUG) | -8.7% | 8.0% | 24.4% | 11.0% | - |
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 54.1% | 25.4% | -14.5% | 10.6% | - |
| Dhampur Sugar Mills ($DHAMPURSUG) | - | -3.7% | 23.1% | -2.5% | 25.6% |
| Dcm Shriram Industries ($DCMSRMIND) | 8.7% | 13.9% | 20.0% | -3.9% | - |
| |
|---|
| Median (9 companies) | 3.9% | 13.7% | 20.0% | -3.9% | 25.6% |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | - | 35.8% | 19.4% | -3.5% | 1.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dhampur Sugar Mills ($DHAMPURSUG) | 13.3% | 15.0% | 7.1% | 8.4% | 10.3% |
| Shree Renuka Sugars ($RENUKA) | - | 15.1% | 8.5% | 4.7% | - |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 12.2% | 13.3% | 6.9% | 0.9% | - |
| Uttam Sugar Mills ($UTTAMSUGAR) | 3.6% | 17.2% | - | -2.0% | - |
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 12.2% | 17.3% | 15.5% | -4.6% | - |
| |
|---|
| Median (7 companies) | 6.8% | 13.3% | 7.1% | -2.0% | 10.3% |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 11.6% | 15.0% | 9.1% | 9.9% | 19.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 1.3% | 1.6% | 0.4% | 3.5% | - |
| Dhampur Sugar Mills ($DHAMPURSUG) | 3.9% | 6.0% | 13.7% | 2.8% | 2.2% |
| Shree Renuka Sugars ($RENUKA) | - | 3.5% | 2.6% | 1.9% | - |
| |
|---|
| Median (3 companies) | 2.0% | 3.5% | 2.4% | 2.8% | 2.2% |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 2.1% | 14.6% | 15.1% | 4.4% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dhampur Sugar Mills ($DHAMPURSUG) | - | 8.4% | 2.9% | 5.2% | 8.7% |
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 10.1% | 21.0% | 14.5% | -8.8% | - |
| Shree Renuka Sugars ($RENUKA) | 0.0% | 6.6% | -1.2% | -9.3% | - |
| Sir Shadi Lal Enterprises ($SSLEL) | -11.2% | 4.3% | - | - | - |
| Piccadily Sugar & Allied Industries ($PICCASUG) | 6.9% | -12.7% | - | - | - |
| |
|---|
| Median (12 companies) | 5.4% | 7.3% | 3.1% | -8.8% | 8.7% |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 3.6% | 6.0% | 4.4% | 4.7% | 7.9% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shree Renuka Sugars ($RENUKA) | - | 4.0x | 7.8x | 13.5x | - |
| Dhampur Sugar Mills ($DHAMPURSUG) | 4.8x | 6.4x | 10.2x | 9.8x | 6.3x |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 5.3x | 4.2x | 9.4x | 0.0x | - |
| |
|---|
| Median (3 companies) | 4.8x | 4.9x | 3.2x | 9.8x | 6.3x |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 7.5x | 5.1x | 7.1x | 6.9x | 4.0x |
