Ganesha Ecosphere reports 17.5% EBITDA growth in 2016 and 3.9% Revenue growth
23-05-2016 • About Ganesha Ecosphere (
$GANECOS) • By InTwits
Ganesha Ecosphere reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 11.5% in FY2016 vs. 10.1% in FY2015 vs. 10.8% in FY2012
- Ganesha Ecosphere has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: ₹104m in FY2016, ₹283m in FY2015, ₹769m in FY2014, ₹1,020m in FY2013, ₹265m in FY2012
- The company has highly profitable business model: ROIC is 14.6%
- It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is 0.8x
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 3.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 16.9% to 18.8% in FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin followed a declining trend at -0.49 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Ganesha Ecosphere's CAPEX/Revenue was 1.6% in FY2016. CAPEX/Revenue dropped on 21.8 pp from 23.4% in FY2013 to 1.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 7.2%. During the last 5 years CAPEX as a % of Revenue topped in FY2013 at 23.4% and was declining since that time.
Return on investment
The company operates at good ROIC (14.6%) and ROE (14.3%). ROIC increased on 2.3 pp from 12.3% to 14.6% in FY2016. ROE decreased slightly on 1.3 pp from 15.6% to 14.3% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 12.3%. ROE declined at -4.1 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.0x. Net Debt / EBITDA dropped on 1.0x from 3.0x to 2.0x in FY2016. Debt dropped on 22.4% while cash dropped on 32.0%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 3.9x and was declining since that time.
Ganesha Ecosphere has short term refinancing risk: cash is only 3.2% of short term debt.
Valuation and dividends
Ganesha Ecosphere's trades at EV/EBITDA 6.6x and P/E 13.7x while industy averages are 17.8x and 21.9x. Ganesha Ecosphere's EV/(EBITDA-CAPEX) is 7.7x with the industry average at 22.8x.
Financial and operational results
Ganesha Ecosphere ($GANECOS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,855 | 4,350 | 4,988 | 6,219 | 6,465 | 3.9% |
| EBITDA | 417 | 483 | 548 | 630 | 741 | 17.5% |
| Net Income | 207 | 241 | 245 | 231 | 249 | 7.8% |
Balance Sheet
|
|---|
| Cash | 68 | 22 | 80 | 37 | 25 | -32.0% |
| Short Term Debt | 565 | 701 | 986 | 1,071 | 787 | -26.5% |
| Long Term Debt | 360 | 1,068 | 1,251 | 869 | 717 | -17.4% |
Cash flow
|
|---|
| Capex | 265 | 1,020 | 769 | 283 | 104 | -63.3% |
Ratios
|
|---|
| Revenue growth | 32.3% | 12.9% | 14.7% | 24.7% | 3.9% | |
| EBITDA growth | 18.7% | 15.8% | 13.4% | 15.1% | 17.5% | |
|
|---|
| EBITDA Margin | 10.8% | 11.1% | 11.0% | 10.1% | 11.5% | 1.3% |
| Net Income Margin | 5.4% | 5.5% | 4.9% | 3.7% | 3.8% | 0.1% |
| CAPEX, % of revenue | 6.9% | 23.4% | 15.4% | 4.6% | 1.6% | -2.9% |
|
|---|
| ROIC | 18.6% | 15.8% | 13.2% | 12.3% | 14.6% | 2.3% |
| ROE | 29.6% | 26.1% | 21.7% | 15.6% | 14.3% | -1.3% |
| Net Debt/EBITDA | 2.1x | 3.6x | 3.9x | 3.0x | 2.0x | -1.0x |
Peers in Misc.Commercial Services
Below you can find Ganesha Ecosphere benchmarking vs. other companies in Misc.Commercial Services 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Delta Corp ($DELTACORP) | - | 16.6% | 31.3% | -46.3% | 26.0% |
| Sindhu Trade Links ($SINDHUTRAD) | - | - | - | - | - |
| Crest Ventures Limited ($CREST) | - | 9.2% | -0.8% | 55.0% | -68.6% |
| |
|---|
| Median (3 companies) | 1.4% | 9.8% | 40.9% | 21.5% | -21.3% |
|---|
| Ganesha Ecosphere ($GANECOS) | - | 12.9% | 14.7% | 24.7% | 3.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Delta Corp ($DELTACORP) | 27.7% | 23.7% | 27.0% | 22.9% | 33.6% |
| Centum Electronics ($CENTUM) | 12.8% | 16.6% | 20.6% | 20.3% | - |
| Greencrest Financial Services ($GREENCREST) | - | - | - | 14.0% | - |
| Crest Ventures Limited ($CREST) | 4.9% | 13.4% | 21.8% | 4.2% | 15.3% |
| Sawaca Business Machines ($SAWABUSI) | - | - | - | 3.9% | - |
| |
|---|
| Median (7 companies) | 12.8% | 16.6% | 21.2% | 4.2% | 24.5% |
|---|
| Ganesha Ecosphere ($GANECOS) | 10.8% | 11.1% | 11.0% | 10.1% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Delta Corp ($DELTACORP) | 95.5% | 74.3% | 14.0% | 5.2% | 2.8% |
| Centum Electronics ($CENTUM) | 5.5% | 2.4% | 6.7% | 3.9% | - |
| Greencrest Financial Services ($GREENCREST) | - | - | - | 0.0% | - |
| Lifeline Drugs & Pharma ($LIFELINE) | - | - | - | 0.0% | - |
| |
|---|
| Median (4 companies) | 5.5% | 3.2% | 5.6% | 2.0% | 2.8% |
|---|
| Ganesha Ecosphere ($GANECOS) | 6.9% | 23.4% | 15.4% | 4.6% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centum Electronics ($CENTUM) | 10.6% | 16.9% | 35.8% | 32.8% | - |
| Trinity Tradelink Limited ($TRITRADE) | -138.6% | -242.1% | 5.1% | 12.3% | - |
| Greencrest Financial Services ($GREENCREST) | - | 1.8% | 2.2% | 3.1% | - |
| Delta Corp ($DELTACORP) | 8.5% | 6.7% | 10.1% | 2.9% | 8.2% |
| Lifeline Drugs & Pharma ($LIFELINE) | 3.3% | 2.8% | 1.2% | -3.3% | - |
| |
|---|
| Median (11 companies) | 4.9% | 4.8% | 5.1% | 3.1% | 8.2% |
|---|
| Ganesha Ecosphere ($GANECOS) | 18.6% | 15.8% | 13.2% | 12.3% | 14.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Delta Corp ($DELTACORP) | 3.2x | 4.4x | 2.1x | 4.6x | 1.4x |
| Trinity Tradelink Limited ($TRITRADE) | - | - | -2.9x | 1.0x | - |
| Centum Electronics ($CENTUM) | 1.9x | 1.2x | 0.5x | 0.4x | - |
| Sawaca Business Machines ($SAWABUSI) | - | - | -1.0x | 0.0x | - |
| Crest Ventures Limited ($CREST) | -1.8x | 0.2x | 2.8x | 0.0x | 0.0x |
| |
|---|
| Median (6 companies) | 1.6x | 0.9x | -0.3x | 0.2x | 0.7x |
|---|
| Ganesha Ecosphere ($GANECOS) | 2.1x | 3.6x | 3.9x | 3.0x | 2.0x |
