Transpek Industry reports 84.3% CAPEX growth in 2016 and almost no change in Revenue of 2,876
24-05-2016 • About Transpek Industry (
$TRANSPEK) • By InTwits
Transpek Industry reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 18.1% in FY2016, 13.6% in FY2015, 10.5% in FY2014, 13.2% in FY2013, 3.2% in FY2012
- Transpek Industry has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: ₹183m in FY2016, ₹785m in FY2015, ₹65m in FY2014, ₹787m in FY2013, ₹2,531m in FY2012
- The company has highly profitable business model: ROIC is 26.9%
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 showed almost no change in FY2016. During the last 5 years Revenue growth topped in FY2013 at 31.7% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 18.6 pp from 4.4% to -14.3% in FY2016. EBITDA Margin grew at 3.0 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 3.7 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.0% in FY2016. The company's CAPEX/Revenue increased slightly on 2.0 pp from 4.0% in FY2013 to 6.0% in FY2016. For the last three years the average CAPEX/Revenue was 4.5%.
Return on investment
The company operates at high and attractive ROIC (26.9%) and ROE (25.7%). ROIC increased on 9.1 pp from 17.8% to 26.9% in FY2016. ROE decreased on 7.8 pp from 33.5% to 25.7% in FY2016. ROIC grew at 6.1 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 1.8x to 1.0x in FY2016. Debt dropped on 21.2% while cash surged on 52.5%.
Transpek Industry has short term refinancing risk: cash is only 12.2% of short term debt.
Valuation and dividends
Transpek Industry's trades at EV/EBITDA 5.0x and P/E 9.8x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 7.5x with the industry average at 22.8x.
Financial and operational results
Transpek Industry ($TRANSPEK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,807 | 2,379 | 2,619 | 2,875 | 2,876 | 0.0% |
| EBITDA | 57 | 314 | 274 | 391 | 520 | 33.0% |
| Net Income | -158 | 74 | 75 | 220 | 213 | -3.1% |
Balance Sheet
|
|---|
| Cash | 36 | 29 | 36 | 24 | 37 | 52.5% |
| Short Term Debt | 766 | 711 | 851 | 419 | 304 | -27.4% |
| Long Term Debt | 289 | 333 | 161 | 297 | 260 | -12.3% |
Cash flow
|
|---|
| Capex | 88 | 95 | 111 | 93 | 172 | 84.3% |
Ratios
|
|---|
| Revenue growth | -9.2% | 31.7% | 10.1% | 9.8% | 0.0% | |
| EBITDA growth | -80.9% | 446.5% | -12.7% | 42.8% | 33.0% | |
|
|---|
| EBITDA Margin | 3.2% | 13.2% | 10.5% | 13.6% | 18.1% | 4.5% |
| Net Income Margin | -8.8% | 3.1% | 2.9% | 7.6% | 7.4% | -0.2% |
| CAPEX, % of revenue | 4.9% | 4.0% | 4.3% | 3.2% | 6.0% | 2.7% |
|
|---|
| ROIC | -1.7% | 14.2% | 11.0% | 17.8% | 26.9% | 9.1% |
| ROE | -29.8% | 15.4% | 14.1% | 33.5% | 25.7% | -7.8% |
| Net Debt/EBITDA | 17.8x | 3.2x | 3.6x | 1.8x | 1.0x | -0.8x |
Peers in Commodity Chemicals
Below we provide Transpek Industry benchmarking against other companies in Commodity Chemicals 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | 354.1% | -27.9% | -83.3% | 408.0% | - |
| Jayshree Chemicals ($JAYCH) | 288.9% | 17.5% | -75.2% | 262.3% | - |
| Jagran Production ($JAGPRO) | 589.4% | 4.4% | 514.9% | 192.3% | - |
| Shree Hari Chemicals Export ($SHHARICH) | -2.5% | -78.0% | 299.5% | 111.6% | - |
| Jindal Poly Films ($JINDPOLBBPH) | -17.2% | -6.3% | 131.7% | 46.9% | - |
| |
|---|
| Median (37 companies) | 21.3% | 9.7% | 11.5% | 5.6% | 2.7% |
|---|
| Transpek Industry ($TRANSPEK) | - | 31.7% | 10.1% | 9.8% | 0.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | - | - | - | 104.7% | - |
| Mysore Petro Chemicals ($MYSORPETRO) | - | - | - | 47.1% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 26.8% | 27.1% | 23.6% | 21.9% | - |
| Indo Borax & Chemicals ($INDOBORAX) | - | - | - | 21.3% | - |
| Chemfab Alkalis ($CHEMFALKAL) | 22.3% | 32.9% | 24.2% | 19.8% | 23.2% |
| |
|---|
| Median (50 companies) | 11.3% | 8.3% | 8.5% | 6.6% | 12.0% |
|---|
| Transpek Industry ($TRANSPEK) | 3.2% | 13.2% | 10.5% | 13.6% | 18.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 25.1% | 6.0% | 13.4% | 40.3% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 136.9% | 24.2% | 30.8% | 15.0% | - |
| Aarti Industries ($AARTIIND) | 8.0% | 11.2% | 11.0% | 10.4% | 16.8% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 15.7% | 9.4% | 5.4% | 5.4% | - |
| |
|---|
| Median (21 companies) | 5.3% | 7.2% | 5.9% | 3.3% | 5.2% |
|---|
| Transpek Industry ($TRANSPEK) | 4.9% | 4.0% | 4.3% | 3.2% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bodal Chemicals ($BODALCHEM) | -1.3% | 3.3% | 39.0% | 38.3% | - |
| Elantas Beck India ($ELANTAS) | 20.4% | 33.9% | 31.0% | 36.6% | - |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% |
| Aarti Industries ($AARTIIND) | 15.9% | 19.1% | 17.2% | 17.9% | 19.3% |
| Balaji Amines ($BALAMINES) | 19.3% | 16.1% | 15.6% | 16.5% | 21.2% |
| |
|---|
| Median (60 companies) | 9.2% | 9.5% | 8.9% | 7.9% | 20.2% |
|---|
| Transpek Industry ($TRANSPEK) | -1.7% | 14.2% | 11.0% | 17.8% | 26.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.8x | 4.5x | 3.7x | 35.4x | 8.8x |
| India Glycols ($INDIAGLYCO) | 4.8x | 3.7x | 8.5x | 14.2x | - |
| Godrej Industries ($GODREJIND) | 9.9x | 5.7x | 7.9x | 10.7x | - |
| Kanoria Chemicals & Industries ($KANORICHEM) | 5.2x | 9.6x | 3.5x | 9.4x | - |
| Garware Polyester ($GARWARPOLY) | 2.2x | 3.8x | 4.0x | 5.2x | - |
| |
|---|
| Median (37 companies) | 2.6x | 3.0x | 0.8x | 0.9x | 0.0x |
|---|
| Transpek Industry ($TRANSPEK) | 17.8x | 3.2x | 3.6x | 1.8x | 1.0x |
