Kcp Sugar & Industries Corporation Debt increased on 8.0% while Revenue decreased on 5.8%
26-05-2016 • About Kcp Sugar & Industries Corporation (
$KCPSUGIND) • By InTwits
Kcp Sugar & Industries Corporation reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.5% in FY2016, -4.6% in FY2015, 15.5% in FY2014, 17.3% in FY2013, 12.2% in FY2012
- Kcp Sugar & Industries Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 5.3%.
- CAPEX is quite volatile: ₹82m in FY2016, ₹150m in FY2015, ₹17m in FY2014, ₹72m in FY2013, ₹48m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.1%
- It operates with high leverage: Net Debt/EBITDA is 5.1x while industry average is 5.8x
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 decreased on 5.8%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.1 pp from -4.6% to 4.5% in FY2016.
Net Income margin increased on 6.2 pp from -3.3% to 3.0% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Kcp Sugar & Industries Corporation had CAPEX/Revenue of 2.0%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (2.1%) and ROE (5.0%). ROIC surged on 10.9 pp from -8.8% to 2.1% in FY2016. ROE jumped on 10.8 pp from -5.8% to 5.0% in FY2016.
Leverage (Debt)
Debt level is 5.1x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA jumped5.1x from to 5.1x in FY2016. Debt increased on 8.0% while cash jumped on 37.6%.
Kcp Sugar & Industries Corporation has short term refinancing risk: cash is only 21.5% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 23.1x and P/E 27.5x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 42.3x with the industry average at 22.8x.
Financial and operational results
Kcp Sugar & Industries Corporation ($KCPSUGIND) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,594 | 4,508 | 3,855 | 4,265 | 4,019 | -5.8% |
| EBITDA | 437 | 779 | 596 | -195 | 182 | |
| Net Income | 285 | 409 | 331 | -139 | 119 | |
Balance Sheet
|
|---|
| Cash | 49 | 51 | 69 | 101 | 139 | 37.6% |
| Short Term Debt | 814 | 319 | 392 | 452 | 644 | 42.4% |
| Long Term Debt | 278 | 181 | 480 | 538 | 425 | -21.0% |
Cash flow
|
|---|
| Capex | 48 | 72 | 17 | 150 | 82 | -45.3% |
Ratios
|
|---|
| Revenue growth | 54.1% | 25.4% | -14.5% | 10.6% | -5.8% | |
| EBITDA growth | 89.8% | 78.2% | -23.5% | -132.7% | -193.2% | |
|
|---|
| EBITDA Margin | 12.2% | 17.3% | 15.5% | -4.6% | 4.5% | 9.1% |
| Net Income Margin | 7.9% | 9.1% | 8.6% | -3.3% | 3.0% | 6.2% |
| CAPEX, % of revenue | 1.3% | 1.6% | 0.4% | 3.5% | 2.0% | -1.5% |
|
|---|
| ROIC | 10.1% | 21.0% | 14.5% | -8.8% | 2.1% | 10.9% |
| ROE | 14.9% | 19.0% | 13.8% | -5.8% | 5.0% | 10.8% |
| Net Debt/EBITDA | 2.4x | 0.6x | 1.3x | | 5.1x |
Peers in Sugar
Below we provide Kcp Sugar & Industries Corporation benchmarking against other companies in Sugar 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 |
|---|
| K.M.Sugar Mills ($KMSUGAR) | -11.3% | 7.0% | 48.3% | 36.1% | - |
| Sbec Sugar ($SBECSUG) | -8.7% | 8.0% | 24.4% | 11.0% | - |
| Dhampur Sugar Mills ($DHAMPURSUG) | - | -3.7% | 23.1% | -2.5% | 25.6% |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | - | 35.8% | 19.4% | -3.5% | 1.4% |
| Dcm Shriram Industries ($DCMSRMIND) | 8.7% | 13.9% | 20.0% | -3.9% | - |
| |
|---|
| Median (9 companies) | -0.4% | 13.7% | 20.0% | -3.9% | 13.5% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | - | 25.4% | -14.5% | 10.6% | -5.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 11.6% | 15.0% | 9.1% | 9.9% | 19.4% |
| Dhampur Sugar Mills ($DHAMPURSUG) | 13.3% | 15.0% | 7.1% | 8.4% | 10.3% |
| Shree Renuka Sugars ($RENUKA) | - | 15.1% | 8.5% | 4.7% | - |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 12.2% | 13.3% | 6.9% | 0.9% | - |
| Uttam Sugar Mills ($UTTAMSUGAR) | 3.6% | 17.2% | - | -2.0% | - |
| |
|---|
| Median (7 companies) | 6.8% | 13.3% | 7.1% | 0.9% | 14.9% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 12.2% | 17.3% | 15.5% | -4.6% | 4.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 2.1% | 14.6% | 15.1% | 4.4% | 7.4% |
| Dhampur Sugar Mills ($DHAMPURSUG) | 3.9% | 6.0% | 13.7% | 2.8% | 2.2% |
| Shree Renuka Sugars ($RENUKA) | - | 3.5% | 2.6% | 1.9% | - |
| |
|---|
| Median (3 companies) | 2.1% | 5.4% | 8.2% | 2.8% | 4.8% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 1.3% | 1.6% | 0.4% | 3.5% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dhampur Sugar Mills ($DHAMPURSUG) | - | 8.4% | 2.9% | 5.2% | 8.7% |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 3.6% | 6.0% | 4.4% | 4.7% | 7.9% |
| Shree Renuka Sugars ($RENUKA) | 0.0% | 6.6% | -1.2% | -9.3% | - |
| Sir Shadi Lal Enterprises ($SSLEL) | -11.2% | 4.3% | - | - | - |
| Piccadily Sugar & Allied Industries ($PICCASUG) | 6.9% | -12.7% | - | - | - |
| |
|---|
| Median (12 companies) | 3.8% | 6.6% | 3.1% | 4.7% | 8.3% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 10.1% | 21.0% | 14.5% | -8.8% | 2.1% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shree Renuka Sugars ($RENUKA) | - | 4.0x | 7.8x | 13.5x | - |
| Dhampur Sugar Mills ($DHAMPURSUG) | 4.8x | 6.4x | 10.2x | 9.8x | 6.3x |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 7.5x | 5.1x | 7.1x | 6.9x | 4.0x |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 5.3x | 4.2x | 9.4x | 0.0x | - |
| |
|---|
| Median (4 companies) | 5.3x | 5.3x | 7.1x | 8.3x | 5.2x |
|---|
