Excel Industries Net Income dropped on 36.8% and EBITDA Margin decreased slightly on 1.0 pp from 15.0% to 14.0%
27-05-2016 • About Excel Industries (
$EXCELINDUS) • By InTwits
Excel Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Excel Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's in pair with industry average of 6.1%
- CAPEX is quite volatile: ₹168m in FY2016, ₹492m in FY2015, ₹154m in FY2014, ₹77m in FY2013, ₹44m in FY2012
- The company has highly profitable business model: ROIC is 15.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Excel Industries's Revenue decreased on 6.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 15.0% to 14.0% in FY2016.
Net Income margin decreased on 2.7 pp from 8.6% to 5.8% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.9% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 7.1%.
Return on investment
The company operates at good ROIC (15.3%) and ROE (13.1%). ROIC decreased on 5.0 pp from 20.3% to 15.3% in FY2016. ROE dropped on 11.2 pp from 24.3% to 13.1% in FY2016.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 1.3x to 1.4x in FY2016. Debt decreased on 6.0% while cash jumped on 134%.
Excel Industries has short term refinancing risk: cash is only 5.4% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 6.7x and P/E 12.9x while industy averages are 17.8x and 21.9x. Excel Industries's EV/(EBITDA-CAPEX) is 11.7x with the industry average at 22.8x.
Management team
The company's CEO Ashwin Champraj Shroff has spent 16 years with the company.
Financial and operational results
Excel Industries ($EXCELINDUS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,155 | 3,841 | 4,159 | 4,816 | 4,481 | -6.9% |
| EBITDA | 267 | 417 | 406 | 723 | 627 | -13.3% |
| Net Income | 154 | 149 | 180 | 412 | 260 | -36.8% |
Balance Sheet
|
|---|
| Cash | 46 | 64 | 76 | 18 | 43 | 134.3% |
| Short Term Debt | 700 | 625 | 765 | 767 | 791 | 3.1% |
| Long Term Debt | 55 | 105 | 259 | 182 | 101 | -44.3% |
Cash flow
|
|---|
| Capex | 240 | 220 | 353 | 329 | 266 | -19.2% |
Ratios
|
|---|
| Revenue growth | 14.7% | 21.7% | 8.3% | 15.8% | -6.9% | |
| EBITDA growth | -22.9% | 56.4% | -2.6% | 78.0% | -13.3% | |
|
|---|
| EBITDA Margin | 8.5% | 10.9% | 9.8% | 15.0% | 14.0% | -1.0% |
| Net Income Margin | 4.9% | 3.9% | 4.3% | 8.6% | 5.8% | -2.7% |
| CAPEX, % of revenue | 7.6% | 5.7% | 8.5% | 6.8% | 5.9% | -0.9% |
|
|---|
| ROIC | 8.5% | 14.2% | 11.9% | 20.3% | 15.3% | -5.0% |
| ROE | 13.0% | 11.5% | 12.5% | 24.3% | 13.1% | -11.2% |
| Net Debt/EBITDA | 2.7x | 1.6x | 2.3x | 1.3x | 1.4x | 0.1x |
Peers in Agrochemicals
Below we provide Excel Industries benchmarking against other companies in Agrochemicals 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 |
|---|
| Astec Lifesciences Limited ($ASTEC) | - | 55.7% | 18.4% | 28.9% | -2.8% |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 15.2% | 113.6% | 18.4% | 25.9% | - |
| P.I.Industries ($PIIND) | - | 31.0% | 38.9% | 21.6% | 8.1% |
| Insecticides (India) ($INSECTICID) | 15.9% | 18.2% | 40.1% | 11.6% | - |
| Rallis India ($RALLIS) | - | 14.4% | 19.8% | 4.3% | -10.6% |
| |
|---|
| Median (7 companies) | 15.2% | 18.2% | 19.8% | 11.6% | -6.7% |
|---|
| Excel Industries ($EXCELINDUS) | - | 21.7% | 8.3% | 15.8% | -6.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | - |
| Astec Lifesciences Limited ($ASTEC) | 15.5% | 16.7% | 17.1% | 20.3% | 9.1% |
| P.I.Industries ($PIIND) | 17.0% | 15.8% | 18.4% | 19.6% | 20.8% |
| Rallis India ($RALLIS) | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% |
| Jubilant Industries ($JUBLINDS) | 1.8% | 1.6% | - | 15.3% | 20.5% |
| |
|---|
| Median (8 companies) | 15.1% | 14.7% | 12.9% | 15.4% | 17.7% |
|---|
| Excel Industries ($EXCELINDUS) | 8.5% | 10.9% | 9.8% | 15.0% | 14.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 13.4% | 13.2% | 4.0% | 8.7% | 15.3% |
| Astec Lifesciences Limited ($ASTEC) | 41.7% | 14.9% | 9.2% | 7.5% | 10.0% |
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | - |
| Rallis India ($RALLIS) | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% |
| Jubilant Industries ($JUBLINDS) | 1.7% | - | - | 2.6% | 1.6% |
| |
|---|
| Median (6 companies) | 7.6% | 8.1% | 3.9% | 3.4% | 7.3% |
|---|
| Excel Industries ($EXCELINDUS) | 7.6% | 5.7% | 8.5% | 6.8% | 5.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 23.9% | 22.5% | 31.3% | 34.0% | 31.0% |
| Monsanto India ($MONSANTO) | 12.4% | 15.3% | 7.8% | 29.2% | - |
| Rallis India ($RALLIS) | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% |
| Astec Lifesciences Limited ($ASTEC) | 5.6% | 9.7% | 10.7% | 19.1% | 4.0% |
| Insecticides (India) ($INSECTICID) | 19.2% | 15.6% | 15.7% | 16.8% | - |
| |
|---|
| Median (9 companies) | 6.4% | 9.7% | 15.7% | 25.4% | 24.5% |
|---|
| Excel Industries ($EXCELINDUS) | 8.5% | 14.2% | 11.9% | 20.3% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Insecticides (India) ($INSECTICID) | 2.7x | 3.0x | 2.7x | 2.8x | - |
| Jubilant Industries ($JUBLINDS) | 12.1x | 11.5x | - | 2.5x | 2.2x |
| Astec Lifesciences Limited ($ASTEC) | 4.1x | 2.4x | 2.3x | 1.7x | 5.3x |
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
| P.I.Industries ($PIIND) | 1.6x | 1.2x | 0.3x | 0.2x | 0.2x |
| |
|---|
| Median (8 companies) | 3.4x | 3.0x | 0.2x | 0.3x | 0.3x |
|---|
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | 1.4x |
