Jubilant Industries Debt dropped on 22.9% and Net Debt / EBITDA dropped on 0.4x from 2.5x to 2.2x
23-05-2016 • About Jubilant Industries (
$JUBLINDS) • By InTwits
Jubilant Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has highly profitable business model: ROIC is 29.4%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Jubilant Industries's Revenue dropped on 29.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.2 pp from 15.3% to 20.5% in FY2016.
Net Income margin surged on 12.2 pp from -13.7% to -1.6% in FY2016.
Investments (CAPEX, working capital and M&A)
Jubilant Industries's CAPEX/Revenue was 1.6% in FY2016. Jubilant Industries's CAPEX/Revenue increased slightly on 1.6 pp from in FY2013 to 1.6% in FY2016.
Return on investment
The company operates at low but positive ROIC (29.4%) and negative ROE (-19.6%).
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 2.5x to 2.2x in FY2016. Debt dropped on 22.9% while cash dropped on 72.2%.
Jubilant Industries has short term refinancing risk: cash is only 6.1% of short term debt.
Financial and operational results
Jubilant Industries ($JUBLINDS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,949 | 9,976 | 9,195 | 8,582 | 6,076 | -29.2% |
| EBITDA | 180 | 161 | | 1,313 | 1,246 | -5.1% |
| Net Income | -567 | -350 | 249 | -1,178 | -95 | |
Balance Sheet
|
|---|
| Cash | 112 | 366 | | 227 | 63 | -72.2% |
| Short Term Debt | 716 | 257 | | 1,934 | 1,039 | -46.3% |
| Long Term Debt | 1,575 | 1,963 | | 1,625 | 1,706 | 5.0% |
Cash flow
|
|---|
| Capex | 170 | | | 225 | 97 | -57.0% |
Ratios
|
|---|
| Revenue growth | 85.2% | 0.3% | -7.8% | -6.7% | -29.2% | |
| EBITDA growth | -66.2% | -10.6% | | | -5.1% | |
|
|---|
| EBITDA Margin | 1.8% | 1.6% | | 15.3% | 20.5% | 5.2% |
| Net Income Margin | -5.7% | -3.5% | 2.7% | -13.7% | -1.6% | 12.2% |
| CAPEX, % of revenue | 1.7% | | | 2.6% | 1.6% | -1.0% |
|
|---|
| ROIC | -3.1% | -3.9% | | | 29.4% | |
| ROE | -24.6% | -21.4% | | | -19.6% | |
| Net Debt/EBITDA | 12.1x | 11.5x | | 2.5x | 2.2x | -0.4x |
Peers in Agrochemicals
Below we provide Jubilant Industries benchmarking against other companies in Agrochemicals 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 |
|---|
| Astec Lifesciences Limited ($ASTEC) | - | 55.7% | 18.4% | 28.9% | -2.8% |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 15.2% | 113.6% | 18.4% | 25.9% | - |
| P.I.Industries ($PIIND) | 22.2% | 31.0% | 38.9% | 21.6% | - |
| Excel Industries ($EXCELINDUS) | 14.7% | 21.7% | 8.3% | 15.8% | - |
| Insecticides (India) ($INSECTICID) | 15.9% | 18.2% | 40.1% | 11.6% | - |
| |
|---|
| Median (7 companies) | 15.2% | 21.7% | 19.8% | 15.8% | -6.7% |
|---|
| Jubilant Industries ($JUBLINDS) | - | 0.3% | -7.8% | -6.7% | -29.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | - |
| Astec Lifesciences Limited ($ASTEC) | 15.5% | 16.7% | 17.1% | 20.3% | 9.1% |
| P.I.Industries ($PIIND) | 17.0% | 15.8% | 18.4% | 19.6% | - |
| Rallis India ($RALLIS) | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% |
| Excel Industries ($EXCELINDUS) | 8.5% | 10.9% | 9.8% | 15.0% | - |
| |
|---|
| Median (8 companies) | 15.1% | 14.7% | 10.6% | 15.2% | 12.0% |
|---|
| Jubilant Industries ($JUBLINDS) | 1.8% | 1.6% | - | 15.3% | 20.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 13.4% | 13.2% | 4.0% | 8.7% | - |
| Astec Lifesciences Limited ($ASTEC) | 41.7% | 14.9% | 9.2% | 7.5% | 10.0% |
| Excel Industries ($EXCELINDUS) | 7.6% | 5.7% | 8.5% | 6.8% | - |
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | - |
| Rallis India ($RALLIS) | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% |
| |
|---|
| Median (6 companies) | 9.1% | 6.9% | 4.0% | 5.1% | 7.3% |
|---|
| Jubilant Industries ($JUBLINDS) | 1.7% | - | - | 2.6% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 23.9% | 22.5% | 31.3% | 34.0% | - |
| Monsanto India ($MONSANTO) | 12.4% | 15.3% | 7.8% | 29.2% | - |
| Rallis India ($RALLIS) | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% |
| Excel Industries ($EXCELINDUS) | 8.5% | 14.2% | 11.9% | 20.3% | - |
| Astec Lifesciences Limited ($ASTEC) | 5.6% | 9.7% | 10.7% | 19.1% | 4.0% |
| |
|---|
| Median (9 companies) | 8.5% | 14.2% | 13.8% | 22.9% | 11.8% |
|---|
| Jubilant Industries ($JUBLINDS) | -3.1% | -3.9% | - | - | 29.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Insecticides (India) ($INSECTICID) | 2.7x | 3.0x | 2.7x | 2.8x | - |
| Astec Lifesciences Limited ($ASTEC) | 4.1x | 2.4x | 2.3x | 1.7x | 5.3x |
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | - |
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
| P.I.Industries ($PIIND) | 1.6x | 1.2x | 0.3x | 0.2x | - |
| |
|---|
| Median (8 companies) | 2.7x | 2.4x | 0.3x | 0.3x | 0.3x |
|---|
| Jubilant Industries ($JUBLINDS) | 12.1x | 11.5x | - | 2.5x | 2.2x |
