Skm Egg Products Export (India) reports 151% Net Income growth in 2016 and 1.1 pp EBITDA Margin growth from 11.9% to 13.0%
25-05-2016 • About Skm Egg Products Export (India) (
$SKMEGGPROD) • By InTwits
Skm Egg Products Export (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 13.0% in FY2016, 11.9% in FY2015, 16.8% in FY2014, 11.5% in FY2013, 1.7% in FY2012
- Skm Egg Products Export (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 36.8%.
- CAPEX is quite volatile: ₹90m in FY2016, ₹23m in FY2015, ₹25m in FY2014, ₹7m in FY2013, ₹4m in FY2012
- The company has highly profitable business model: ROIC is 30.0%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is 0.1x
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 increased on 3.7%. During the last 5 years Revenue growth topped in FY2013 at 51.0% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 82.8% to 86.9% in FY2016.
Net Income margin increased on 4.7 pp from 3.4% to 8.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Skm Egg Products Export (India) had CAPEX/Revenue of 3.0%. Skm Egg Products Export (India)'s CAPEX/Revenue increased on 2.6 pp from 0.33% in FY2013 to 3.0% in FY2016. Average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at high and attractive ROIC (30.0%) and ROE (31.0%). ROIC increased slightly on 0.53 pp from 29.4% to 30.0% in FY2016. ROE jumped on 13.9 pp from 17.0% to 31.0% in FY2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.9x to 0.4x in FY2016. Debt decreased on 4.3% while cash jumped on 220%.
Skm Egg Products Export (India) has short term refinancing risk: cash is only 54.0% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 5.6x and P/E 8.3x while industy averages are 17.8x and 21.9x. Skm Egg Products Export (India)'s EV/(EBITDA-CAPEX) is 7.3x with the industry average at 22.8x.
Financial and operational results
Skm Egg Products Export (India) ($SKMEGGPROD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,425 | 2,151 | 2,655 | 2,921 | 3,029 | 3.7% |
| EBITDA | 25 | 246 | 447 | 348 | 393 | 12.9% |
| Net Income | -110 | 10 | 277 | 98 | 245 | 150.6% |
Balance Sheet
|
|---|
| Cash | 49 | 51 | 83 | 59 | 189 | 219.5% |
| Short Term Debt | 397 | 368 | 308 | 371 | 350 | -5.7% |
| Long Term Debt | 500 | 511 | 44 | 0 | 5 | |
Cash flow
|
|---|
| Capex | 4 | 7 | 25 | 23 | 90 | 285.0% |
Ratios
|
|---|
| Revenue growth | 13.0% | 51.0% | 23.4% | 10.0% | 3.7% | |
| EBITDA growth | -27.1% | 898.3% | 81.6% | -22.2% | 12.9% | |
|
|---|
| EBITDA Margin | 1.7% | 11.5% | 16.8% | 11.9% | 13.0% | 1.1% |
| Net Income Margin | -7.7% | 0.5% | 10.4% | 3.4% | 8.1% | 4.7% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.9% | 0.8% | 3.0% | 2.2% |
|
|---|
| ROIC | -3.4% | 4.8% | 36.3% | 29.4% | 30.0% | 0.5% |
| ROE | -25.3% | 2.6% | 64.9% | 17.0% | 31.0% | 13.9% |
| Net Debt/EBITDA | 34.3x | 3.4x | 0.6x | 0.9x | 0.4x | -0.5x |
Peers in Other Food Products
Below you can find Skm Egg Products Export (India) benchmarking vs. other companies in Other Food 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Waterbase ($WATERBASE) | - | 51.8% | 45.3% | 21.5% | 14.5% |
| |
|---|
| Median (1 company) | - | 51.8% | 45.3% | 21.5% | 14.5% |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | - | 51.0% | 23.4% | 10.0% | 3.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lactose (India) ($LACTOSE) | - | - | - | 22.2% | - |
| Waterbase ($WATERBASE) | 10.7% | 7.7% | 10.4% | 11.2% | 7.5% |
| Chordia Food Products ($CHORDIA) | - | - | - | 8.6% | - |
| |
|---|
| Median (3 companies) | 10.7% | 7.7% | 10.4% | 11.2% | 7.5% |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 1.7% | 11.5% | 16.8% | 11.9% | 13.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Waterbase ($WATERBASE) | 2.4% | 1.6% | 0.4% | 1.8% | 1.6% |
| |
|---|
| Median (1 company) | 2.4% | 1.6% | 0.4% | 1.8% | 1.6% |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 0.3% | 0.3% | 0.9% | 0.8% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Waterbase ($WATERBASE) | 10.8% | 11.3% | 22.5% | 25.3% | 17.2% |
| Saboo Sodium Chloro ($SABOOSOD) | -0.4% | - | - | - | - |
| Lactose (India) ($LACTOSE) | - | - | - | - | - |
| Kothari Fermentation & Biochem ($KFBL) | - | - | - | - | - |
| Chordia Food Products ($CHORDIA) | 10.2% | - | - | - | - |
| |
|---|
| Median (5 companies) | 10.2% | 11.3% | 22.5% | 25.3% | 17.2% |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | -3.4% | 4.8% | 36.3% | 29.4% | 30.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chordia Food Products ($CHORDIA) | 0.8x | - | - | 0.0x | - |
| Lactose (India) ($LACTOSE) | 0.0x | 2.0x | 0.0x | 0.0x | - |
| Waterbase ($WATERBASE) | 1.3x | 1.3x | 0.1x | -0.3x | -0.2x |
| |
|---|
| Median (3 companies) | 1.1x | 0.6x | 0.0x | 0.0x | -0.2x |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 34.3x | 3.4x | 0.6x | 0.9x | 0.4x |
