Bodal Chemicals EBITDA dropped on 16.1% and Revenue dropped on 12.9%
26-05-2016 • About Bodal Chemicals (
$BODALCHEM) • By InTwits
Bodal Chemicals reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 17.3% in FY2016, 18.0% in FY2015, 20.4% in FY2014, 5.6% in FY2013, 1.8% in FY2012
- Bodal Chemicals has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: ₹244m in FY2016, ₹355m in FY2015, ₹182m in FY2014, ₹38m in FY2013, ₹229m in FY2012
- The company has highly profitable business model: ROIC is 33.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Bodal Chemicals's Revenue dropped on 12.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.2 pp from 3.6% to 9.8% in FY2016. During the last 5 years EBITDA Margin topped in FY2014 at 20.4% and was declining since that time.
Net Income margin increased slightly on 0.67 pp from 8.8% to 9.4% in FY2016. Net Income margin grew at 4.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.7%. Bodal Chemicals's CAPEX/Revenue increased slightly on 2.0 pp from 0.72% in FY2013 to 2.7% in FY2016. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at high and attractive ROIC (33.1%) and ROE (44.0%). ROIC decreased on 5.2 pp from 38.3% to 33.1% in FY2016. ROE dropped on 39.0 pp from 82.9% to 44.0% in FY2016. During the last 5 years ROIC topped in FY2014 at 39.0% and was declining since that time.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.1x to 0.9x in FY2016. Debt dropped on 31.5% while cash dropped on 60.9%. Net Debt/EBITDA declined at -7.1x per annum in the last 5 years.
Bodal Chemicals has short term refinancing risk: cash is only 0.3% of short term debt.
Valuation and dividends
Bodal Chemicals's trades at EV/EBITDA 6.7x and P/E 10.7x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 8.0x with the industry average at 22.8x.
Management team
Suresh J Patel is a the company's CEO. Suresh J Patel has spent 14 years with the company. Bodal Chemicals's CFO is Mayur Bachubhai Padhya. Mayur Bachubhai Padhya has 7 years tenure at the company.
Financial and operational results
Bodal Chemicals ($BODALCHEM) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,034 | 5,275 | 9,496 | 10,453 | 9,100 | -12.9% |
| EBITDA | 111 | 296 | 1,934 | 1,879 | 1,576 | -16.1% |
| Net Income | -298 | -232 | 302 | 918 | 860 | -6.3% |
Balance Sheet
|
|---|
| Cash | 17 | 4 | 10 | 12 | 5 | -60.9% |
| Short Term Debt | 2,105 | 1,022 | 1,558 | 1,225 | 1,422 | 16.1% |
| Long Term Debt | 1,341 | 2,457 | 2,158 | 862 | 7 | -99.2% |
Cash flow
|
|---|
| Capex | 229 | 38 | 182 | 355 | 244 | -31.2% |
Ratios
|
|---|
| Revenue growth | 5.4% | -12.6% | 80.0% | 10.1% | -12.9% | |
| EBITDA growth | -81.7% | 166.5% | 554.1% | -2.9% | -16.1% | |
|
|---|
| EBITDA Margin | 1.8% | 5.6% | 20.4% | 18.0% | 17.3% | -0.7% |
| Net Income Margin | -4.9% | -4.4% | 3.2% | 8.8% | 9.4% | 0.7% |
| CAPEX, % of revenue | 3.8% | 0.7% | 1.9% | 3.4% | 2.7% | -0.7% |
|
|---|
| ROIC | -1.3% | 3.3% | 39.0% | 38.3% | 33.1% | -5.2% |
| ROE | -43.5% | -50.0% | 60.6% | 82.9% | 44.0% | -39.0% |
| Net Debt/EBITDA | 30.9x | 11.8x | 1.9x | 1.1x | 0.9x | -0.2x |
Peers in Commodity Chemicals
Below we provide Bodal Chemicals benchmarking against other companies in Commodity Chemicals 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | - | -27.9% | -83.3% | 408.0% | 18.3% |
| Jayshree Chemicals ($JAYCH) | 288.9% | 17.5% | -75.2% | 262.3% | - |
| Jagran Production ($JAGPRO) | 589.4% | 4.4% | 514.9% | 192.3% | - |
| Shree Hari Chemicals Export ($SHHARICH) | -2.5% | -78.0% | 299.5% | 111.6% | - |
| Jindal Poly Films ($JINDPOLBBPH) | -17.2% | -6.3% | 131.7% | 46.9% | - |
| |
|---|
| Median (37 companies) | 19.0% | 11.2% | 10.6% | 5.6% | 1.5% |
|---|
| Bodal Chemicals ($BODALCHEM) | - | -12.6% | 80.0% | 10.1% | -12.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | - | - | - | 104.7% | - |
| Mysore Petro Chemicals ($MYSORPETRO) | - | - | - | 47.1% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 26.8% | 27.1% | 23.6% | 21.9% | - |
| Indo Borax & Chemicals ($INDOBORAX) | - | - | - | 21.3% | - |
| Chemfab Alkalis ($CHEMFALKAL) | 22.3% | 32.9% | 24.2% | 19.8% | 23.2% |
| |
|---|
| Median (50 companies) | 11.3% | 8.4% | 8.5% | 6.6% | 10.2% |
|---|
| Bodal Chemicals ($BODALCHEM) | 1.8% | 5.6% | 20.4% | 18.0% | 17.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 25.1% | 6.0% | 13.4% | 40.3% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 136.9% | 24.2% | 30.8% | 15.0% | - |
| Aarti Industries ($AARTIIND) | 8.0% | 11.2% | 11.0% | 10.4% | 16.8% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 15.7% | 9.4% | 5.4% | 5.4% | 3.6% |
| |
|---|
| Median (21 companies) | 5.3% | 7.2% | 5.9% | 3.2% | 4.6% |
|---|
| Bodal Chemicals ($BODALCHEM) | 3.8% | 0.7% | 1.9% | 3.4% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Elantas Beck India ($ELANTAS) | 20.4% | 33.9% | 31.0% | 36.6% | - |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% |
| Aarti Industries ($AARTIIND) | 15.9% | 19.1% | 17.2% | 17.9% | 19.3% |
| Transpek Industry ($TRANSPEK) | -1.7% | 14.2% | 11.0% | 17.8% | 26.9% |
| Balaji Amines ($BALAMINES) | 19.3% | 16.1% | 15.6% | 16.5% | 21.2% |
| |
|---|
| Median (60 companies) | 9.2% | 9.8% | 8.9% | 7.9% | 15.3% |
|---|
| Bodal Chemicals ($BODALCHEM) | -1.3% | 3.3% | 39.0% | 38.3% | 33.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.8x | 4.5x | 3.7x | 35.4x | 8.8x |
| India Glycols ($INDIAGLYCO) | 4.8x | 3.7x | 8.5x | 14.2x | 6.7x |
| Godrej Industries ($GODREJIND) | 9.9x | 5.7x | 7.9x | 10.7x | 10.0x |
| Kanoria Chemicals & Industries ($KANORICHEM) | 5.2x | 9.6x | 3.5x | 9.4x | - |
| Garware Polyester ($GARWARPOLY) | 2.2x | 3.8x | 4.0x | 5.2x | 3.1x |
| |
|---|
| Median (37 companies) | 2.6x | 3.0x | 0.8x | 0.9x | 1.1x |
|---|
| Bodal Chemicals ($BODALCHEM) | 30.9x | 11.8x | 1.9x | 1.1x | 0.9x |
