Gokul Refoils & Solvent reports 47.8% EBITDA decline in 2016 and 42.3% Revenue decline
25-05-2016 • About Gokul Refoils & Solvent (
$GOKUL) • By InTwits
Gokul Refoils & Solvent reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gokul Refoils & Solvent is a company in decline: FY2016 revenue growth was -42.3%, 5 years revenue CAGR was -6.7%
- EBITDA Margin is quite volatile: 1.6% in FY2016, 1.7% in FY2015, 2.8% in FY2014, 1.5% in FY2013, 0.5% in FY2012
- Gokul Refoils & Solvent has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has potentially unprofitable business model: ROIC is 5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 42.3%. EBITDA Margin showed almost no change in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2014 at 2.8% and was declining since that time.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
Gokul Refoils & Solvent's CAPEX/Revenue was 0.14% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.48%.
Return on investment
The company operates at low ROIC (5.6%) and ROE (3.4%). ROIC decreased slightly on 1.3 pp from 6.9% to 5.6% in FY2016. ROE increased slightly on 0.95 pp from 2.5% to 3.4% in FY2016. During FY2012-FY2016 ROIC topped in FY2014 at 10.9% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 2.4x. Debt dropped on 78.3% while cash dropped on 35.8%.
Gokul Refoils & Solvent has no short term refinancing risk: cash is higher than short term debt (133.5%).
Valuation and dividends
The company's trades at EV/EBITDA 2.9x and P/E 14.9x while industy averages are 17.8x and 21.9x.
Financial and operational results
Gokul Refoils & Solvent ($GOKUL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 65,005 | 57,378 | 63,634 | 58,333 | 33,666 | -42.3% |
| SG&A | | | | 374 | 191 | -48.9% |
| EBITDA | 347 | 873 | 1,769 | 1,019 | 532 | -47.8% |
| Net Income | -1,081 | 99 | 36 | 92 | 112 | 21.6% |
Balance Sheet
|
|---|
| Cash | 1,184 | 3,716 | 2,377 | 2,183 | 1,400 | -35.8% |
| Short Term Debt | 16,977 | 11,294 | 6,004 | 5,475 | 1,049 | -80.8% |
| Long Term Debt | 503 | 231 | 510 | 500 | 250 | -50.0% |
Cash flow
|
|---|
| Capex | 493 | 241 | 272 | 505 | 48 | -90.4% |
Ratios
|
|---|
| Revenue growth | 36.6% | -11.7% | 10.9% | -8.3% | -42.3% | |
| EBITDA growth | -82.1% | 151.3% | 102.6% | -42.4% | -47.8% | |
|
|---|
| EBITDA Margin | 0.5% | 1.5% | 2.8% | 1.7% | 1.6% | -0.2% |
| SG&A, % of revenue | | | | 0.6% | 0.6% | -0.1% |
| Net Income Margin | -1.7% | 0.2% | 0.1% | 0.2% | 0.3% | 0.2% |
| CAPEX, % of revenue | 0.8% | 0.4% | 0.4% | 0.9% | 0.1% | -0.7% |
|
|---|
| ROIC | 0.1% | 2.8% | 10.9% | 6.9% | 5.6% | -1.3% |
| ROE | -26.9% | 2.8% | 1.0% | 2.5% | 3.4% | 0.9% |
| Net Debt/EBITDA | 46.9x | 8.9x | 2.3x | 3.7x | -0.2x | -3.9x |
Peers in Edible Oils
Below we provide Gokul Refoils & Solvent benchmarking against other companies in Edible Oils 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 |
|---|
| Ajanta Soya ($AJANTSOY) | 22.4% | 13.2% | 13.1% | 16.8% | - |
| Kriti Nutrients ($KRITINUT) | - | 2.7% | -37.8% | 6.4% | 15.4% |
| Natraj Proteins ($NATRAJPR) | 16.3% | 44.1% | 14.8% | -17.1% | - |
| Poona Dal & Oil Industries ($POONADAL) | - | 30.1% | -23.2% | -33.5% | 34.8% |
| Divya Jyoti Industries ($DIVYAJYQ) | 15.4% | 33.3% | -2.7% | -49.5% | - |
| |
|---|
| Median (8 companies) | 33.2% | 10.2% | 5.2% | -41.5% | 25.1% |
|---|
| Gokul Refoils & Solvent ($GOKUL) | - | -11.7% | 10.9% | -8.3% | -42.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kriti Nutrients ($KRITINUT) | 3.8% | 2.2% | 4.2% | 4.6% | 4.2% |
| Rasoya Proteins ($RASOYPR) | 7.3% | 6.0% | 6.3% | 1.5% | - |
| Ruchi Infrastructure ($RUCHINFRA) | 1.7% | 1.9% | 1.0% | 0.5% | - |
| Raj Oil Mills ($RAJOIL) | - | - | - | -2.0% | - |
| |
|---|
| Median (4 companies) | 2.6% | 2.0% | 3.1% | 1.0% | 2.7% |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.5% | 1.5% | 2.8% | 1.7% | 1.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 0.6% | 0.1% | 0.1% | 2.0% | - |
| |
|---|
| Median (1 company) | 0.6% | 1.2% | 0.1% | 2.0% | - |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.8% | 0.4% | 0.4% | 0.9% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 4.5% | 3.5% | 1.9% | -1.3% | - |
| Murli Industries ($MURLIIND) | -12.3% | -8.8% | - | - | - |
| Sam Industries ($SAMINDUS) | 25.4% | 4.9% | - | - | - |
| Poona Dal & Oil Industries ($POONADAL) | 18.1% | 13.2% | - | - | - |
| Raj Oil Mills ($RAJOIL) | - | - | - | - | - |
| |
|---|
| Median (10 companies) | 14.7% | 8.7% | 7.2% | -1.3% | - |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.1% | 2.8% | 10.9% | 6.9% | 5.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 3.1x | 7.7x | 13.3x | 52.1x | - |
| Kriti Nutrients ($KRITINUT) | 0.3x | 1.0x | 0.0x | 0.0x | 0.0x |
| Rasoya Proteins ($RASOYPR) | 1.9x | 2.7x | 2.4x | 0.0x | - |
| |
|---|
| Median (3 companies) | 1.1x | 2.0x | 0.0x | 0.0x | 0.0x |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 46.9x | 8.9x | 2.3x | 3.7x | -0.2x |
