Ashapura Minechem Net Income surged on 545% and Revenue increased slightly on 1.3%
26-05-2016 • About Ashapura Minechem (
$ASHAPURMIN) • By InTwits
Ashapura Minechem reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ashapura Minechem has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 7.8%
- CAPEX is quite volatile: ₹1,400m in FY2016, ₹1,103m in FY2015, ₹399m in FY2014, ₹409m in FY2013, ₹420m in FY2012
- The company has highly profitable business model: ROIC is 143.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.5x while industry average is -7.3x
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 slightly on 1.3%. During the last 5 years Revenue growth topped in FY2015 at 61.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.8 pp from 9.6% to 11.4% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 17.1% and was declining since that time.
Net Income margin surged on 11.2 pp from -2.1% to 9.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 7.9%. Ashapura Minechem showed CAPEX/Revenue growth of 2.6 pp from 5.3% in FY2013 to 7.9% in FY2016. For the last three years the average CAPEX/Revenue was 6.0%. Ashapura Minechem invested a large share of EBITDA (58.7%) to CAPEX. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 3.7% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.8x. Net Debt / EBITDA decreased on 0.027x from 0.5x to 0.5x in FY2016. Debt decreased on 4.6% while cash surged on 29.8%. Net Debt/EBITDA stuck to a declining trend at -1.3x per annum in FY2012-FY2016.
Ashapura Minechem has short term refinancing risk: cash is only 79.9% of short term debt.
Valuation and dividends
Ashapura Minechem's trades at EV/EBITDA 3.2x and P/E 4.0x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 7.8x with the industry average at 22.8x.
Management team
The company's CEO Rajnikant Pajwani has spent 6 years with the company.
Financial and operational results
Ashapura Minechem ($ASHAPURMIN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,526 | 7,719 | 10,832 | 17,528 | 17,753 | 1.3% |
| EBITDA | 766 | 1,321 | 1,798 | 2,719 | 2,387 | -12.2% |
| Net Income | -336 | 441 | 1,742 | -365 | 1,623 | |
Balance Sheet
|
|---|
| Cash | 131 | 279 | 318 | 492 | 639 | 29.8% |
| Short Term Debt | 3,540 | 3,158 | 2,338 | 1,403 | 800 | -43.0% |
| Long Term Debt | 937 | 966 | 512 | 477 | 994 | 108.2% |
Cash flow
|
|---|
| Capex | 420 | 409 | 399 | 1,103 | 1,400 | 26.9% |
Ratios
|
|---|
| Revenue growth | 2.7% | 18.3% | 40.3% | 61.8% | 1.3% | |
| EBITDA growth | -64.3% | 72.4% | 36.2% | 51.2% | -12.2% | |
|
|---|
| EBITDA Margin | 11.7% | 17.1% | 16.6% | 15.5% | 13.4% | -2.1% |
| Net Income Margin | -5.2% | 5.7% | 16.1% | -2.1% | 9.1% | 11.2% |
| CAPEX, % of revenue | 6.4% | 5.3% | 3.7% | 6.3% | 7.9% | 1.6% |
|
|---|
| ROIC | 39.1% | 87.6% | 90.5% | 181.4% | 143.7% | -37.6% |
| Net Debt/EBITDA | 5.7x | 2.9x | 1.4x | 0.5x | 0.5x | -0.0x |
Peers in Mining
Below you can find Ashapura Minechem benchmarking vs. other companies in Mining 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 |
|---|
| 20 Microns ($20MICRONS) | - | 3.6% | 5.0% | 9.0% | 0.4% |
| Moil ($MOIL) | - | 7.5% | 5.6% | -19.4% | -23.6% |
| |
|---|
| Median (2 companies) | - | 5.6% | 5.3% | -5.2% | -11.6% |
|---|
| Ashapura Minechem ($ASHAPURMIN) | - | 18.3% | 40.3% | 61.8% | 1.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Moil ($MOIL) | 48.3% | 45.2% | 54.6% | 50.9% | 15.4% |
| 20 Microns ($20MICRONS) | 12.7% | 12.4% | 9.2% | 8.4% | 12.8% |
| Yantra Natural Resources ($YANTRA) | - | - | - | 4.2% | - |
| |
|---|
| Median (3 companies) | 30.5% | 28.8% | 31.9% | 8.4% | 14.1% |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 11.7% | 17.1% | 16.6% | 15.5% | 13.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Moil ($MOIL) | 4.6% | 4.9% | 7.5% | 11.5% | 15.6% |
| Yantra Natural Resources ($YANTRA) | - | - | - | 0.0% | - |
| |
|---|
| Median (2 companies) | 9.9% | 4.9% | 7.5% | 5.8% | 15.6% |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 6.4% | 5.3% | 3.7% | 6.3% | 7.9% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Moil ($MOIL) | 17.7% | 15.6% | 17.8% | 11.5% | 1.3% |
| Yantra Natural Resources ($YANTRA) | - | - | - | 0.1% | - |
| Southern Magnesium & Chemicals ($SOUTHMG) | - | - | - | - | - |
| 20 Microns ($20MICRONS) | 15.8% | 13.4% | - | - | - |
| |
|---|
| Median (4 companies) | 16.8% | 14.5% | 17.8% | 5.8% | 1.3% |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 39.1% | 87.6% | 90.5% | 181.4% | 143.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 20 Microns ($20MICRONS) | 3.9x | 3.6x | 0.0x | 0.0x | 0.0x |
| Yantra Natural Resources ($YANTRA) | - | - | -17.9x | -0.1x | - |
| Moil ($MOIL) | -0.0x | -0.1x | -5.0x | -6.8x | -29.5x |
| |
|---|
| Median (3 companies) | 3.9x | 3.6x | -5.0x | -0.1x | -14.7x |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 5.7x | 2.9x | 1.4x | 0.5x | 0.5x |
