Mandhana Industries Debt increased on 9.4% and Net Debt / EBITDA increased on 0.1x from 3.8x to 3.9x
24-05-2016 • About Mandhana Industries (
$MANDHANA) • By InTwits
Mandhana Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Mandhana Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: ₹189m in FY2016, ₹432m in FY2015, ₹389m in FY2014, ₹529m in FY2013, ₹1,018m in FY2012
- The company has highly profitable business model: ROIC is 12.3%
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 1.1x
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 6.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 13.9% to 12.8% in FY2016.
Net Income margin decreased slightly on 0.60 pp from 4.1% to 3.5% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.1% in FY2016. CAPEX/Revenue decreased on 2.7 pp from 3.9% in FY2013 to 1.1% in FY2016. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at good ROIC (12.3%) while ROE is low (9.9%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.8 pp from 11.6% to 9.9% in FY2016. ROE declined at -2.1 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 3.8x to 3.9x in FY2016. Debt increased on 9.4% while cash decreased slightly on 1.5%.
Mandhana Industries has short term refinancing risk: cash is only 1.6% of short term debt.
Valuation and dividends
Mandhana Industries's trades at EV/EBITDA 5.5x and P/E 7.0x while industy averages are 17.8x and 21.9x. Mandhana Industries's EV/(EBITDA-CAPEX) is 6.0x with the industry average at 22.8x.
Management team
Purushottam C Mandhana is a the company's CEO. Purushottam C Mandhana has spent 10 years with the company.
Financial and operational results
Mandhana Industries ($MANDHANA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,801 | 13,631 | 15,179 | 15,429 | 16,466 | 6.7% |
| EBITDA | 1,870 | 1,976 | 2,404 | 2,271 | 2,445 | 7.6% |
| Net Income | 731 | 653 | 592 | 627 | 571 | -8.9% |
Balance Sheet
|
|---|
| Cash | 6 | 145 | 39 | 116 | 114 | -1.5% |
| Short Term Debt | 3,751 | 4,669 | 5,501 | 6,214 | 7,317 | 17.7% |
| Long Term Debt | 3,264 | 3,914 | 3,840 | 2,528 | 2,246 | -11.1% |
Cash flow
|
|---|
| Capex | 1,018 | 529 | 389 | 432 | 189 | -56.2% |
Ratios
|
|---|
| Revenue growth | -41.5% | 39.1% | 11.4% | 1.6% | 6.7% | |
| EBITDA growth | -80.6% | 5.7% | 21.7% | -5.5% | 7.6% | |
|
|---|
| EBITDA Margin | 19.1% | 14.5% | 15.8% | 14.7% | 14.8% | 0.1% |
| Net Income Margin | 7.5% | 4.8% | 3.9% | 4.1% | 3.5% | -0.6% |
| CAPEX, % of revenue | 10.4% | 3.9% | 2.6% | 2.8% | 1.1% | -1.6% |
|
|---|
| ROIC | 12.1% | 13.2% | 14.2% | 12.0% | 12.3% | 0.3% |
| ROE | 19.0% | 14.7% | 11.9% | 11.6% | 9.9% | -1.8% |
| Net Debt/EBITDA | 3.7x | 4.3x | 3.9x | 3.8x | 3.9x | 0.1x |
Peers in Textiles
Below you can find Mandhana Industries benchmarking vs. other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | -58.0% | -96.6% | 74,809.1% | 1,749.9% | - |
| Shri Dinesh Mills ($SHRIDINE) | 5.0% | 5.1% | -76.5% | 304.9% | - |
| Santaram Spinners ($SANTASPN) | 6.0% | 60.7% | -40.9% | 112.0% | - |
| Asahi Industries ($ASAHIIND) | 36.2% | 23.0% | 24.4% | 103.9% | - |
| Blue Chip Tex Industries ($BLUECHIPT) | - | 12.9% | 29.9% | 56.1% | 23.7% |
| |
|---|
| Median (74 companies) | 5.0% | 8.9% | 14.5% | -0.3% | 0.2% |
|---|
| Mandhana Industries ($MANDHANA) | - | 39.1% | 11.4% | 1.6% | 6.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sil Investments ($SILINV) | - | - | - | 93.8% | - |
| Swadeshi Polytex ($SWADPOL) | - | - | - | 64.4% | - |
| Binny ($BINNY) | - | - | - | 60.9% | - |
| Ruby Mills ($RUBYMILLS) | 28.3% | 25.1% | 28.6% | 29.3% | - |
| Premier Synthetics ($PREMSYN) | - | - | - | 25.9% | - |
| |
|---|
| Median (85 companies) | 6.2% | 9.3% | 9.5% | 7.0% | 10.6% |
|---|
| Mandhana Industries ($MANDHANA) | 19.1% | 14.5% | 15.8% | 14.7% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitin Spinners ($NITINSPIN) | 1.9% | 2.6% | 8.0% | 42.3% | 4.7% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 18.6% | 24.1% | 6.8% | 16.8% | - |
| Jindal Worldwide ($JINDWORLD) | 3.0% | 10.5% | 20.7% | 11.6% | - |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | 13.0% |
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| |
|---|
| Median (20 companies) | 3.2% | 5.9% | 7.4% | 6.7% | 6.2% |
|---|
| Mandhana Industries ($MANDHANA) | 10.4% | 3.9% | 2.6% | 2.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Maharaja Shree Umaid Mills ($MAHASHR) | -0.5% | 9.2% | 8.3% | 20.4% | - |
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | 14.4% |
| Arvind ($ARVIND) | 11.3% | 11.2% | 13.7% | 13.2% | 13.1% |
| |
|---|
| Median (127 companies) | 3.5% | 8.9% | 8.6% | 9.0% | 12.8% |
|---|
| Mandhana Industries ($MANDHANA) | 12.1% | 13.2% | 14.2% | 12.0% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | 7.3x |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | - |
| Dcm ($DCM) | 13.5x | 3.5x | 3.7x | 5.5x | - |
| Nahar Spinning Mills ($NAHARSPING) | 70.8x | 3.8x | 3.2x | 4.9x | - |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | - |
| |
|---|
| Median (70 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 0.0x |
|---|
| Mandhana Industries ($MANDHANA) | 3.7x | 4.3x | 3.9x | 3.8x | 3.9x |
