Gujarat Mineral Development Corporation reports 358% CAPEX growth in 2016 while 16.4% Revenue decline
26-05-2016 • About Gujarat Mineral Development Corporation (
$GMDCLTD) • By InTwits
Gujarat Mineral Development Corporation reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gujarat Mineral Development Corporation is a company in decline: FY2016 revenue growth was -16.4%, 5 years revenue CAGR was -3.3%
- EBITDA Margin is declining: 27.2% in FY2016 vs. 36.3% in FY2015 vs. 47.4% in FY2012
- Gujarat Mineral Development Corporation has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.0%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: ₹3,492m in FY2016, ₹762m in FY2015, ₹1,946m in FY2014, ₹1,650m in FY2013, ₹3,346m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x 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
Gujarat Mineral Development Corporation's Revenue dropped on 16.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 9.1 pp from 36.3% to 27.2% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 55.5% and was declining since that time.
Net Income margin dropped on 14.8 pp from 34.8% to 20.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Gujarat Mineral Development Corporation had CAPEX/Revenue of 29.0%. CAPEX/Revenue jumped on 19.1 pp from 9.9% in FY2013 to 29.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 16.5%. The company has spent a lot to CAPEX (107% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (4.6%) and ROE (7.3%). ROIC decreased on 6.0 pp from 10.6% to 4.6% in FY2016. ROE decreased on 9.1 pp from 16.4% to 7.3% in FY2016. ROIC followed a declining trend at -6.9 pp per annum in the last 5 years. ROE declined at -4.8 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.6x. Net Debt / EBITDA surged on 1.2x from 1.3x to 2.5x in FY2016. Debt jumped on 23.8% while cash surged on 232%. Net Debt/EBITDA followed a growing trend at 0.6x per annum in FY2012-FY2016.
Gujarat Mineral Development Corporation has short term refinancing risk: cash is only 51.6% of short term debt.
Financial and operational results
Gujarat Mineral Development Corporation ($GMDCLTD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,293 | 16,676 | 12,897 | 14,393 | 12,027 | -16.4% |
| EBITDA | 7,718 | 9,264 | 6,175 | 5,219 | 3,268 | -37.4% |
| Net Income | 4,868 | 6,008 | 4,391 | 5,009 | 2,412 | -51.9% |
Balance Sheet
|
|---|
| Cash | 550 | 552 | 401 | 101 | 334 | 231.7% |
| Short Term Debt | 303 | 352 | 238 | 99 | 647 | 553.2% |
| Long Term Debt | 0 | 0 | 0 | 6,688 | 7,759 | 16.0% |
Cash flow
|
|---|
| Capex | 3,346 | 1,650 | 1,946 | 762 | 3,492 | 358.2% |
Ratios
|
|---|
| Revenue growth | 14.7% | 2.3% | -22.7% | 11.6% | -16.4% | |
| EBITDA growth | 15.5% | 20.0% | -33.3% | -15.5% | -37.4% | |
|
|---|
| EBITDA Margin | 47.4% | 55.5% | 47.9% | 36.3% | 27.2% | -9.1% |
| Net Income Margin | 29.9% | 36.0% | 34.0% | 34.8% | 20.1% | -14.8% |
| CAPEX, % of revenue | 20.5% | 9.9% | 15.1% | 5.3% | 29.0% | 23.7% |
|
|---|
| ROIC | 28.9% | 30.8% | 16.3% | 10.6% | 4.6% | -6.0% |
| ROE | 26.2% | 26.2% | 16.3% | 16.4% | 7.3% | -9.1% |
| Net Debt/EBITDA | -0.0x | -0.0x | -0.0x | 1.3x | 2.5x | 1.2x |
Peers in Coal
Below you can find Gujarat Mineral Development Corporation benchmarking vs. other companies in Coal 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 |
|---|
| Coal India ($COALINDIA) | 24.3% | 9.4% | 0.7% | 4.7% | - |
| Gujarat Nre Coke ($GUJNRECOKE) | -22.9% | 45.1% | -54.1% | -59.4% | - |
| Gujarat Nre Coke ($GUJNREDVR) | -22.9% | 45.1% | -54.1% | -59.4% | - |
| |
|---|
| Median (3 companies) | -22.9% | 45.1% | -54.1% | -59.4% | - |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | - | 2.3% | -22.7% | 11.6% | -16.4% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coal India ($COALINDIA) | 25.3% | 26.7% | 25.9% | 24.1% | - |
| Gujarat Nre Coke ($GUJNRECOKE) | 36.0% | 30.8% | -76.1% | -36.3% | - |
| Gujarat Nre Coke ($GUJNREDVR) | 36.0% | 30.8% | -76.1% | -36.3% | - |
| |
|---|
| Median (3 companies) | 36.0% | 30.8% | -76.1% | -36.3% | - |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 47.4% | 55.5% | 47.9% | 36.3% | 27.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coal India ($COALINDIA) | 5.5% | 3.6% | 6.0% | 6.8% | - |
| Gujarat Nre Coke ($GUJNRECOKE) | 103.1% | 47.0% | 0.0% | 0.0% | - |
| Gujarat Nre Coke ($GUJNREDVR) | 103.1% | 47.0% | 0.0% | 0.0% | - |
| |
|---|
| Median (3 companies) | 103.1% | 47.0% | 0.0% | 0.0% | - |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 20.5% | 9.9% | 15.1% | 5.3% | 29.0% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coal India ($COALINDIA) | 28.7% | 28.9% | 30.3% | 35.3% | - |
| Gujarat Nre Coke ($GUJNRECOKE) | 5.7% | 4.2% | -13.3% | -5.0% | - |
| Gujarat Nre Coke ($GUJNREDVR) | 5.7% | 4.2% | -13.3% | -5.0% | - |
| |
|---|
| Median (3 companies) | 5.7% | 4.2% | -13.3% | -5.0% | - |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 28.9% | 30.8% | 16.3% | 10.6% | 4.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coal India ($COALINDIA) | -3.6x | -3.3x | -2.9x | -2.7x | - |
| |
|---|
| Median (1 company) | 7.5x | 7.4x | -2.9x | -2.7x | - |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | -0.0x | -0.0x | -0.0x | 1.3x | 2.5x |
