Bedmutha Industries revenue growth accelerated from 44.6% in FY2015 to 52.8% in FY2016

25-05-2016 • About Bedmutha Industries ($BEDMUTHA) • By InTwits

Bedmutha Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: Bedmutha Industries is a fast growth stock: FY2016 revenue growth was 52.8%, 5 year revenue CAGR was 18.4% at FY2016 ROIC .

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 surged on 52.8%. During the last 5 years Revenue growth bottomed in FY2013 at -7.4% and was accelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.7 pp from 5.0% to 2.4% in FY2016.

Net Income margin decreased on 5.3 pp from -2.6% to -8.0% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 0.48% and was declining since that time.

Financial and operational results

Bedmutha Industries ($BEDMUTHA) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,379	2,202	2,262	3,271	4,998	52.8%
EBITDA	170	176		165	118	-28.5%
Net Income	-12	7	11	-87	-398
Balance Sheet
Cash	86	61
Short Term Debt	525	958
Long Term Debt	224	772
Cash flow
Capex	143
Ratios
Revenue growth	10.7%	-7.4%	2.7%	44.6%	52.8%
EBITDA growth	-29.7%	3.8%			-28.5%

EBITDA Margin	7.1%	8.0%		5.0%	2.4%	-2.7%
Net Income Margin	-0.5%	0.3%	0.5%	-2.6%	-8.0%	-5.3%
CAPEX, % of revenue	6.0%

ROIC	6.1%	4.4%
ROE	-1.0%	0.6%
Net Debt/EBITDA	3.9x	9.5x		0.0x	0.0x

Peers in Iron & Steel Products

Below you can find Bedmutha Industries benchmarking vs. other companies in Iron & Steel Products 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
Remi Edelstahl Tubulars ($REMIEDEL)	40.9%	-10.8%	-24.4%	40.7%	-
Nile ($NILE)	7.5%	-19.1%	6.9%	38.7%	-
Apl Apollo Tubes ($APLAPOLLO)	54.5%	44.2%	24.3%	25.7%	-
Usha Martin ($USHAMART)	-	7.8%	12.5%	12.0%	-9.1%
Lakshmi Precision Screws ($LAKPRE)	9.9%	-6.2%	7.5%	7.9%	-
Median (10 companies)	20.4%	-8.0%	7.2%	5.8%	-9.1%
Bedmutha Industries ($BEDMUTHA)	-	-7.4%	2.7%	44.6%	52.8%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Gandhi Special Tubes ($GANDHITUBE)	-	-	-	25.5%	-
National Fittings ($NATFIT)	-	-	-	19.3%	-
Usha Martin ($USHAMART)	13.2%	18.1%	18.7%	16.5%	8.5%
Shree Steel Wire Ropes ($SSWRL)	-	-	-	12.5%	-
Lakshmi Precision Screws ($LAKPRE)	15.9%	16.2%	7.0%	12.4%	-
Median (13 companies)	5.2%	5.6%	6.6%	5.9%	8.5%
Bedmutha Industries ($BEDMUTHA)	7.1%	8.0%	-	5.0%	2.4%

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Usha Martin ($USHAMART)	21.6%	23.5%	29.0%	13.2%	9.2%
Apl Apollo Tubes ($APLAPOLLO)	5.6%	4.2%	5.1%	5.9%	-
Gandhi Special Tubes ($GANDHITUBE)	-	-	-	4.0%	-
Median (3 companies)	5.6%	2.5%	15.4%	5.9%	9.2%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Apl Apollo Tubes ($APLAPOLLO)	18.2%	19.5%	16.0%	16.6%	-
Lakshmi Precision Screws ($LAKPRE)	14.4%	11.9%	3.1%	11.9%	-
Gandhi Special Tubes ($GANDHITUBE)	28.3%	18.9%	13.2%	11.1%	13.3%
Usha Martin ($USHAMART)	4.3%	6.5%	7.6%	5.6%	0.7%
Gujarat Containers ($GUJCONT)	-	20.0%	-	-	-
Median (23 companies)	8.5%	8.7%	6.7%	11.5%	7.0%
Bedmutha Industries ($BEDMUTHA)	6.1%	4.4%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Usha Martin ($USHAMART)	10.0x	4.8x	4.8x	5.2x	11.4x
Lakshmi Precision Screws ($LAKPRE)	2.7x	3.4x	8.1x	4.4x	-
Apl Apollo Tubes ($APLAPOLLO)	2.7x	2.8x	3.1x	2.3x	-
Uni Abex Alloy Products ($UNIABEXAL)	0.0x	1.6x	0.0x	0.0x	-
National Fittings ($NATFIT)	0.8x	0.1x	0.0x	0.0x	-
Median (11 companies)	2.6x	3.4x	0.0x	0.0x	0.0x
Bedmutha Industries ($BEDMUTHA)	3.9x	9.5x	-	0.0x	0.0x

Bedmutha Industries stock price chart

Bedmutha Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	3,982	2,148	2,379
EBITDA	293.5	241.4	169.7
Net income	106.0	36.715	-12.311
CAPEX	163.5	323.1	142.8
Debt	951.7	569.5	748.9
Cash	30.362	19.644	85.956

About Bedmutha Industries

Bedmutha Industries Limited manufactures and sells wire and wire products in India. The company operates through Wire & Wire Products and Consultancy segments. It provides retail products, including galvanized steel and M.S, barbed, stitching, and staple wires, as well as chainlink fencing and wire nails; automotive products comprising spring steel wires messenger, high carbon rope, cold heading quality, bead, and patented galvanized and black wires; and power products, such as earth, stay, barbed, and 19 strand guy wires, as well as cable armors, single and stranded A.C.S.R. core wires, and distribution boxes. The company also offers infrastructure products, including H.T./P.C. wires, P.C. strands, and annealed/binding wires; copper products comprising copper bus bars, copper tapes for cables, and copper foils; and wire ropes. In addition, it provides consultancy services. The company was formerly known as Bedmutha Wire Company Limited and changed its name to Bedmutha Industries Limited in November 2009. Bedmutha Industries Limited was founded in 1969 and is based in Mumbai, India.