Moil reports 76.9% EBITDA decline in 2016 and 23.6% Revenue decline
24-05-2016 • About Moil (
$MOIL) • By InTwits
Moil reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Moil is a company in decline: FY2016 revenue growth was -23.6%, 5 years revenue CAGR was -11.2%
- EBITDA Margin is quite volatile: 15.4% in FY2016, 50.9% in FY2015, 54.6% in FY2014, 45.2% in FY2013, 48.3% in FY2012
- Moil has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: ₹978m in FY2016, ₹947m in FY2015, ₹763m in FY2014, ₹477m in FY2013, ₹418m in FY2012
- The company has potentially unprofitable business model: ROIC is 1.3%
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 dropped on 23.6%. During FY2012-FY2016 Revenue growth topped in FY2013 at 7.5% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 35.5 pp from 50.9% to 15.4% in FY2016.
Net Income margin dropped on 24.5 pp from 52.0% to 27.5% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 15.6% in FY2016. Moil's CAPEX/Revenue surged on 10.6 pp from 4.9% in FY2013 to 15.6% in FY2016. For the last three years the average CAPEX/Revenue was 11.5%. Battling declining revenue the company made large investments to CAPEX (101% of EBITDA) but that didn't help at least in this year. CAPEX as a % of Revenue followed a growing trend at 2.8 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low ROIC (1.3%) and ROE (5.1%). ROIC dropped on 10.2 pp from 11.5% to 1.3% in FY2016. ROE decreased on 8.1 pp from 13.2% to 5.1% in FY2016. ROE declined at -2.9 pp per annum in FY2012-FY2016.
Leverage (Debt)
The company has no debt. Cash increased slightly on 0.71%.
Valuation and dividends
Moil's trades at EV/EBITDA 8.2x and P/E 21.0x while industy averages are 17.8x and 21.9x.
Financial and operational results
Moil ($MOIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,996 | 9,671 | 10,213 | 8,233 | 6,287 | -23.6% |
| EBITDA | 4,348 | 4,367 | 5,573 | 4,190 | 967 | -76.9% |
| Net Income | 4,108 | 4,317 | 5,096 | 4,280 | 1,730 | -59.6% |
Balance Sheet
|
|---|
| Cash | 80 | 325 | 27,889 | 28,288 | 28,489 | 0.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 418 | 477 | 763 | 947 | 978 | 3.3% |
Ratios
|
|---|
| Revenue growth | -21.1% | 7.5% | 5.6% | -19.4% | -23.6% | |
| EBITDA growth | -43.5% | 0.4% | 27.6% | -24.8% | -76.9% | |
|
|---|
| EBITDA Margin | 48.3% | 45.2% | 54.6% | 50.9% | 15.4% | -35.5% |
| Net Income Margin | 45.7% | 44.6% | 49.9% | 52.0% | 27.5% | -24.5% |
| CAPEX, % of revenue | 4.6% | 4.9% | 7.5% | 11.5% | 15.6% | 4.1% |
|
|---|
| ROIC | 17.7% | 15.6% | 17.8% | 11.5% | 1.3% | -10.2% |
| ROE | 18.0% | 16.6% | 17.3% | 13.2% | 5.1% | -8.1% |
| Net Debt/EBITDA | -0.0x | -0.1x | -5.0x | -6.8x | -29.5x | -22.7x |
Peers in Mining
Below you can find Moil benchmarking vs. other companies in Mining 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 |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 2.7% | 18.3% | 40.3% | 61.8% | - |
| 20 Microns ($20MICRONS) | - | 3.6% | 5.0% | 9.0% | 0.4% |
| |
|---|
| Median (2 companies) | 2.7% | 11.0% | 22.7% | 35.4% | 0.4% |
|---|
| Moil ($MOIL) | - | 7.5% | 5.6% | -19.4% | -23.6% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 11.7% | 17.1% | 16.6% | 15.5% | - |
| 20 Microns ($20MICRONS) | 12.7% | 12.4% | 9.2% | 8.4% | 12.8% |
| Yantra Natural Resources ($YANTRA) | - | - | - | 4.2% | - |
| |
|---|
| Median (3 companies) | 12.2% | 14.7% | 12.9% | 8.4% | 12.8% |
|---|
| Moil ($MOIL) | 48.3% | 45.2% | 54.6% | 50.9% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 6.4% | 5.3% | 3.7% | 6.3% | - |
| Yantra Natural Resources ($YANTRA) | - | - | - | 0.0% | - |
| |
|---|
| Median (2 companies) | 10.8% | 5.3% | 3.7% | 3.1% | - |
|---|
| Moil ($MOIL) | 4.6% | 4.9% | 7.5% | 11.5% | 15.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 39.1% | 87.6% | 90.5% | 181.4% | - |
| Yantra Natural Resources ($YANTRA) | - | - | - | 0.1% | - |
| Southern Magnesium & Chemicals ($SOUTHMG) | - | - | - | - | - |
| 20 Microns ($20MICRONS) | 15.8% | 13.4% | - | - | - |
| |
|---|
| Median (4 companies) | 27.4% | 50.5% | 90.5% | 90.7% | - |
|---|
| Moil ($MOIL) | 17.7% | 15.6% | 17.8% | 11.5% | 1.3% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 5.7x | 2.9x | 1.4x | 0.5x | - |
| 20 Microns ($20MICRONS) | 3.9x | 3.6x | 0.0x | 0.0x | 0.0x |
| Yantra Natural Resources ($YANTRA) | - | - | -17.9x | -0.1x | - |
| |
|---|
| Median (3 companies) | 5.7x | 3.6x | 0.0x | 0.0x | 0.0x |
|---|
| Moil ($MOIL) | -0.0x | -0.1x | -5.0x | -6.8x | -29.5x |
