Trending stocks

Ion Exchange (India) EBITDA surged on 19.2% and Revenue increased on 8.6%

24-05-2016 • About Ion Exchange (India) ($IONEXCHANG) • By InTwits

Ion Exchange (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
  • Ion Exchange (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 6.0%.
  • CAPEX is quite volatile: ₹299m in FY2016, ₹173m in FY2015, ₹73m in FY2014, ₹178m in FY2013, ₹194m in FY2012
  • The company has highly profitable business model: ROIC is 16.4%
  • It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Ion Exchange (India)'s Revenue increased on 8.6%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -7.5% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.79 pp from 12.9% to 12.1% in FY2016.

Net Income margin increased slightly on 0.54 pp from 1.2% to 1.8% in FY2016.

Investments (CAPEX, working capital and M&A)


In FY2016 the company had CAPEX/Revenue of 3.4%. Ion Exchange (India) showed small growth in CAPEX/Revenue of 1.4 pp from 2.1% in FY2013 to 3.4% in FY2016. Average CAPEX/Revenue for the last three years was 2.2%. Ion Exchange (India) maintained rich investment policy and has spent a big chunk of EBITDA (53.7%) to CAPEX. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 0.92% and was growing since that time.

Return on investment


The company operates at good ROIC (16.4%) while ROE is low (9.4%). ROIC increased on 3.3 pp from 13.1% to 16.4% in FY2016. ROE increased on 3.1 pp from 6.3% to 9.4% in FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.3x from 1.6x to 1.2x in FY2016. Debt increased on 3.7% while cash jumped on 65.2%.

Ion Exchange (India) has short term refinancing risk: cash is only 30.5% of short term debt.

Financial and operational results


Ion Exchange (India) ($IONEXCHANG) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue7,2288,5737,9308,0058,6958.6%
EBITDA31749334146755619.2%
Net Income96141469815356.9%
Balance Sheet
Cash10013911612320365.2%
Short Term Debt5787448476616650.6%
Long Term Debt11111411120223013.8%
Cash flow
Capex1941787317329972.9%
Ratios
Revenue growth26.5%18.6%-7.5%0.9%8.6%
EBITDA growth-325.0%55.7%-30.8%36.9%19.2%
EBITDA Margin4.4%5.8%4.3%5.8%6.4%0.6%
Net Income Margin1.3%1.7%0.6%1.2%1.8%0.5%
CAPEX, % of revenue2.7%2.1%0.9%2.2%3.4%1.3%
ROIC11.0%15.1%8.8%13.1%16.4%3.3%
ROE7.2%9.8%3.0%6.3%9.4%3.1%
Net Debt/EBITDA1.9x1.5x2.5x1.6x1.2x-0.3x

Peers in Industrial Machinery


Below you can find Ion Exchange (India) benchmarking vs. other companies in Industrial Machinery 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
Lloyd Electric & Engineering ($LLOYDELENG)---22.3%27.3%
Kabra Extrusiontechnik ($KABRAEXTRU)-13.3%-8.7%28.4%21.6%-
Akar Tools ($AKARTOOL)21.1%2.1%-2.3%16.7%-
Honda Siel Power Products ($HONDAPOWER)-2.4%5.0%16.5%4.7%
Mazda ($MAZDALTD)22.1%14.7%-15.6%16.2%-
 
Median (27 companies)17.1%2.1%3.0%3.7%0.7%
Ion Exchange (India) ($IONEXCHANG)-18.6%-7.5%0.9%8.6%


Top companies by Gross margin, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Bell Agromachina ($BELAGRO)0.0%0.0%0.0%0.0%0.0%
 
Median (1 company)0.0%0.0%0.0%0.0%0.0%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Texmaco Infrastructure & Holdings ($TEXINFRA)---40.5%-
Dhp India ($DHPIND)---26.3%-
Shilp Gravures ($SHILGRAVQ)---19.4%-
Solitaire Machine Tools ($SOLIMAC)---19.4%-
Wendt (India) ($WENDT)28.3%21.6%18.6%19.0%16.5%
 
Median (43 companies)11.3%9.5%10.5%10.4%11.8%
Ion Exchange (India) ($IONEXCHANG)4.4%5.8%4.3%5.8%6.4%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Texmaco Infrastructure & Holdings ($TEXINFRA)---14.0%-
Wendt (India) ($WENDT)13.5%9.0%8.8%9.4%9.3%
Ingersoll-Rand (India) ($INGERRAND)4.3%10.9%3.6%9.2%-
Kabra Extrusiontechnik ($KABRAEXTRU)6.5%1.8%0.5%8.8%-
Forbes & Company ($FORBESCO)1.8%2.6%3.0%5.1%-
 
Median (21 companies)6.1%4.4%3.0%3.3%2.1%
Ion Exchange (India) ($IONEXCHANG)2.7%2.1%0.9%2.2%3.4%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Greaves Cotton ($GREAVESCOT)-24.8%16.3%26.7%25.7%
Gmm Pfaudler ($GMM)-76.2%6.8%17.4%18.2%16.1%
Lakshmi Machine Works ($LAXMIMACH)18.0%11.7%16.2%17.6%-
Honda Siel Power Products ($HONDAPOWER)16.9%8.8%11.5%15.3%18.3%
Wendt (India) ($WENDT)38.2%20.2%16.2%15.1%12.6%
 
Median (52 companies)13.5%10.2%10.2%12.1%12.6%
Ion Exchange (India) ($IONEXCHANG)11.0%15.1%8.8%13.1%16.4%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Forbes & Company ($FORBESCO)2.2x3.3x4.7x6.3x-
Nitin Fire Protection Industries ($NITINFIRE)3.6x3.5x3.0x3.7x-
Elgi Equipments ($ELGIEQUIP)-1.2x2.3x2.7x3.3x-
Lloyd Electric & Engineering ($LLOYDELENG)--3.7x3.2x2.7x
Elecon Engineering Co ($ELECON)3.0x3.2x4.0x3.1x3.9x
 
Median (34 companies)0.6x1.3x0.0x0.0x0.0x
Ion Exchange (India) ($IONEXCHANG)1.9x1.5x2.5x1.6x1.2x


Similar news

24-05-2016 Ncc EBITDA increased on 6.8% and Revenue increased slightly on 0.74%

24-05-2016 Ahluwalia Contracts (India) reports 37.2% EBITDA growth in 2016 and 1.8 pp EBITDA Margin growth from 11.1% to 12.9%

24-05-2016 Transpek Industry reports 84.3% CAPEX growth in 2016 and almost no change in Revenue of 2,876

24-05-2016 Jammu & Kashmir Bank reports 18.6% Net Income decline in 2016 and 4.0% Revenue decline

24-05-2016 Asian Hotels (West) revenue jumped on 16.3%