Asleyf Net Income surged on 700% and EBITDA Margin increased on 4.3 pp from 10.7% to 15.0%
25-05-2016 • About Asleyf (
$ASLEYF) • By InTwits
Asleyf reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asleyf is a growth stock: FY2016 revenue growth was 34.7%, 5 year revenue CAGR was 13.1% at FY2016 ROIC 16.4%
- EBITDA Margin is quite volatile: 15.0% in FY2016, 10.7% in FY2015, 4.1% in FY2014, 7.0% in FY2013, 9.7% in FY2012
- Asleyf has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: ₹2,119m in FY2016, ₹2,509m in FY2015, ₹4,081m in FY2014, ₹6,492m in FY2013, ₹6,978m in FY2012
- The company has highly profitable business model: ROIC is 16.4%
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 jumped on 34.7%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -8.0% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.3 pp from 10.7% to 15.0% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 4.1% and was growing since that time.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin increased on 4.3 pp from 0.87% to 5.2% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at -1.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.0%. The company's CAPEX/Revenue decreased on 4.2 pp from 5.2% in FY2013 to 1.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.1%. CAPEX as a % of Revenue followed a declining trend at -1.2 pp per annum in FY2012-FY2016.
Return on investment
The company operates at high and attractive ROE (22.5%) while ROIC is a bit lower (16.4%). ROIC increased on 8.8 pp from 7.6% to 16.4% in FY2016. ROE jumped on 19.4 pp from 3.2% to 22.5% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at -0.52% and was growing since that time. During FY2012-FY2016 ROE bottomed in FY2014 at -3.9% and was growing since that time.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.9x from 5.0x to 3.1x in FY2016. Debt surged on 23.8% while cash jumped on 94.9%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 17.8x and was declining since that time.
Asleyf has short term refinancing risk: cash is only 48.3% of short term debt.
Management team
Vinod K Dasari is a the company's CEO. Vinod K Dasari has spent 9 years with the company. Gopal Mahadevan is a Asleyf's CFO. Gopal Mahadevan has spent 7 years at the company.
Financial and operational results
Asleyf ($ASLEYF) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 129,043 | 124,812 | 114,867 | 153,409 | 206,587 | 34.7% |
| SG&A | | | | 4,332 | 5,513 | 27.2% |
| EBITDA | 12,504 | 8,765 | 4,709 | 16,361 | 31,003 | 89.5% |
| Net Income | 5,660 | 4,337 | -1,641 | 1,339 | 10,707 | 699.7% |
Balance Sheet
|
|---|
| Cash | 326 | 78 | 1,064 | 8,990 | 17,524 | 94.9% |
| Short Term Debt | 8,045 | 16,176 | 30,088 | 28,505 | 36,317 | 27.4% |
| Long Term Debt | 22,934 | 27,378 | 54,912 | 62,194 | 75,971 | 22.2% |
Cash flow
|
|---|
| Capex | 6,978 | 6,492 | 4,081 | 2,509 | 2,119 | -15.6% |
Ratios
|
|---|
| Revenue growth | 15.5% | -3.3% | -8.0% | 33.6% | 34.7% | |
| EBITDA growth | 2.1% | -29.9% | -46.3% | 247.5% | 89.5% | |
|
|---|
| EBITDA Margin | 9.7% | 7.0% | 4.1% | 10.7% | 15.0% | 4.3% |
| SG&A, % of revenue | | | | 2.8% | 2.7% | -0.2% |
| Net Income Margin | 4.4% | 3.5% | -1.4% | 0.9% | 5.2% | 4.3% |
| CAPEX, % of revenue | 5.4% | 5.2% | 3.6% | 1.6% | 1.0% | -0.6% |
|
|---|
| ROIC | 12.2% | 5.8% | -0.5% | 7.6% | 16.4% | 8.8% |
| ROE | 13.9% | 10.0% | -3.9% | 3.2% | 22.5% | 19.4% |
| Net Debt/EBITDA | 2.5x | 5.0x | 17.8x | 5.0x | 3.1x | -1.9x |
Peers in
Below you can find Asleyf benchmarking vs. other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | - | -14.4% | -1.2% | 49.3% | -9.8% |
| Indbulbbph ($INDBULBBPH) | - | -6.5% | 33.5% | 49.2% | 0.9% |
| Monetbbph ($MONETBBPH) | 22.3% | 3.7% | 11.6% | 40.8% | - |
| Bharat Rasayan ($BHARATRA) | 51.3% | 32.1% | 92.7% | 21.4% | - |
| Jklakbbph ($JKLAKBBPH) | - | 19.6% | 0.0% | 12.2% | 14.0% |
| |
|---|
| Median (17 companies) | 18.0% | 11.0% | 3.9% | 8.8% | 4.3% |
|---|
| Asleyf ($ASLEYF) | - | -3.3% | -8.0% | 33.6% | 34.7% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | - | - | - | 53.4% | - |
| Kaleconbbph ($KALECONBBPH) | 27.7% | 44.3% | 43.5% | 37.9% | - |
| Paushak ($PAUSHAK) | - | - | - | 25.6% | - |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | - | - | - | 24.7% | - |
| Indbulbbph ($INDBULBBPH) | 36.7% | 34.6% | 29.5% | 23.5% | 28.7% |
| |
|---|
| Median (20 companies) | 15.7% | 14.9% | 15.8% | 10.5% | 9.8% |
|---|
| Asleyf ($ASLEYF) | 9.7% | 7.0% | 4.1% | 10.7% | 15.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 131.4% | 5.2% | 139.2% | 89.2% | - |
| Jklakbbph ($JKLAKBBPH) | 28.5% | 28.8% | 24.6% | 23.6% | 17.5% |
| Rilbbph ($RILBBPH) | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% |
| Gkw ($GKW) | - | - | - | 15.5% | - |
| Paushak ($PAUSHAK) | - | - | - | 12.3% | - |
| |
|---|
| Median (17 companies) | 8.9% | 6.3% | 4.9% | 5.0% | 2.7% |
|---|
| Asleyf ($ASLEYF) | 5.4% | 5.2% | 3.6% | 1.6% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaleconbbph ($KALECONBBPH) | - | 89.0% | 103.8% | 81.0% | - |
| Bharat Rasayan ($BHARATRA) | 22.1% | 13.7% | 21.9% | 26.1% | - |
| Uplbbph ($UPLBBPH) | 17.1% | 15.9% | 18.2% | 22.1% | 22.2% |
| Rane Brake Lining ($RANEBRAKE) | 14.1% | 7.9% | 11.1% | 12.8% | 21.2% |
| Merckbbph ($MERCKBBPH) | 21.3% | 13.1% | 8.6% | 10.6% | - |
| |
|---|
| Median (28 companies) | 8.4% | 7.7% | 6.6% | 3.9% | 3.0% |
|---|
| Asleyf ($ASLEYF) | 12.2% | 5.8% | -0.5% | 7.6% | 16.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 9.8x | 16.3x | 27.4x | 140.3x | - |
| Indbulbbph ($INDBULBBPH) | 4.3x | 4.8x | 5.5x | 9.6x | 6.5x |
| Jklakbbph ($JKLAKBBPH) | 2.1x | 2.3x | 5.3x | 5.5x | 8.3x |
| Rane Engine Valve ($RANENGIN) | 2.1x | 11.3x | 4.5x | 4.8x | 25.4x |
| Indian Metals & Ferro Alloys ($INDMETA-B) | 4.0x | 3.8x | 3.5x | 4.3x | 9.1x |
| |
|---|
| Median (16 companies) | 1.7x | 1.8x | 2.0x | 0.9x | 2.2x |
|---|
| Asleyf ($ASLEYF) | 2.5x | 5.0x | 17.8x | 5.0x | 3.1x |
