Kamdhenu Ispat reports 13.1% revenue decline in FY2016 and 0.67 pp EBITDA Margin growth from 3.1% to 3.8%

27-05-2016 • About Kamdhenu Ispat ($KIL) • By InTwits

Kamdhenu Ispat reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is relatively stable: 3.8% in FY2016 vs. 3.1% in FY2015 vs. 4.0% in FY2012.

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 dropped on 13.1%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.67 pp from 3.1% to 3.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 2.7% and was growing since that time.

Net Income margin showed almost no change in FY2016.

Financial and operational results

Kamdhenu Ispat ($KIL) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	4,815	5,475	9,217	9,680	8,412	-13.1%
EBITDA	192	210	250	299	316	5.7%
Net Income	40	48	60	80	81	1.5%
Balance Sheet
Cash	35	90
Short Term Debt	609	703
Long Term Debt	67	19
Cash flow
Ratios
Revenue growth	25.7%	13.7%	68.3%	5.0%	-13.1%
EBITDA growth	31.3%	9.8%	18.9%	19.8%	5.7%

EBITDA Margin	4.0%	3.8%	2.7%	3.1%	3.8%	0.7%
Net Income Margin	0.8%	0.9%	0.6%	0.8%	1.0%	0.1%

ROIC	9.7%	10.5%
ROE	5.3%	5.7%
Net Debt/EBITDA	3.3x	3.0x	0.0x	0.0x	0.0x

Peers in Iron & Steel/Interm.Products

Below we provide Kamdhenu Ispat benchmarking against other companies in Iron & Steel/Interm.Products 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
Ocl Iron And Steel ($OISL)	-	5.5%	86.6%	69.1%	-65.1%
Uttam Galva Steels ($UTTAMSTL)	12.0%	11.0%	-13.2%	55.0%	-
Modern Steels ($MDRNSTL)	-2.6%	-22.7%	0.7%	20.3%	-
Maithan Alloys ($MAITHANALL)	-	59.1%	1.1%	15.0%	4.0%
Pennar Industries ($PENIND)	-	-8.5%	0.5%	12.7%	3.4%
Median (34 companies)	11.9%	5.5%	3.4%	-1.6%	-15.4%
Kamdhenu Ispat ($KIL)	-	13.7%	68.3%	5.0%	-13.1%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Jindal Steel & Power ($JINDALSTEL)	37.5%	30.5%	28.1%	29.8%	17.2%
Sarda Energy & Minerals ($SARDAEN)	16.3%	21.5%	21.3%	21.5%	13.5%
Bhushan Steel ($BHUSANSTL)	31.2%	32.3%	28.1%	20.4%	-
Jsw Steel ($JSWSTEEL)	17.8%	17.1%	17.9%	17.7%	14.6%
Tata Metaliks ($TATAMETALI)	-9.6%	0.9%	6.8%	14.6%	16.8%
Median (31 companies)	9.4%	9.2%	7.4%	7.3%	10.0%
Kamdhenu Ispat ($KIL)	4.0%	3.8%	2.7%	3.1%	3.8%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Ocl Iron And Steel ($OISL)	191.2%	247.2%	163.7%	42.4%	-
Jindal Steel & Power ($JINDALSTEL)	34.2%	47.6%	69.6%	26.4%	21.8%
Jayaswal Neco Industries ($JAYNECOIND)	20.4%	44.0%	31.1%	17.3%	5.7%
Steel Authority Of India ($SAIL)	20.9%	20.7%	19.3%	16.9%	17.3%
Bhushan Steel ($BHUSANSTL)	47.2%	44.0%	50.4%	16.2%	-
Median (19 companies)	10.2%	11.7%	8.3%	5.3%	7.9%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Tata Metaliks ($TATAMETALI)	-23.5%	-3.7%	19.9%	57.4%	42.6%
Pennar Industries ($PENIND)	26.8%	18.4%	12.3%	15.7%	16.6%
Maithan Alloys ($MAITHANALL)	16.3%	15.1%	5.5%	15.3%	19.0%
Kirloskar Ferrous Industries ($KIRLFER)	19.1%	16.8%	12.4%	14.7%	15.9%
Gallantt Metal ($GALLANTT)	8.7%	11.7%	8.5%	11.7%	-
Median (42 companies)	6.8%	5.4%	5.8%	4.6%	3.4%
Kamdhenu Ispat ($KIL)	9.7%	10.5%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Visa Steel ($VISASTEEL)	20.1x	-	24.4x	187.1x	-
Ismt ($ISMTLTD)	5.3x	9.8x	19.9x	48.3x	0.0x
Kic Metaliks ($KAJARIR)	9.2x	3.0x	18.2x	19.8x	-
Ocl Iron And Steel ($OISL)	164.7x	1,935.8x	41.6x	19.4x	-
Bhushan Steel ($BHUSANSTL)	6.3x	8.6x	12.9x	17.7x	-
Median (28 companies)	4.8x	4.4x	4.2x	2.2x	0.9x
Kamdhenu Ispat ($KIL)	3.3x	3.0x	0.0x	0.0x	0.0x

Kamdhenu Ispat stock price chart

Kamdhenu Ispat financials

mln.	FY2010	FY2011	FY2012

Revenue	11,107	3,831	4,815
EBITDA	107.9	145.9	191.5
Net income	19.356	28.450	40.307
CAPEX	39.771	94.780	0.000
Debt	579.2	780.9	675.8
Cash	52.361	26.341	35.257

About Kamdhenu Ispat

Kamdhenu Ispat Limited manufactures and sells steel products in India. It operates in three segments: Steel, Power, and Paints. The company offers various reinforcement steel bars comprising high strength deformed, thermo-mechanically-treated (TMT) TMPCORE, stainless steel, TMT galvanized, and epoxy coated reinforcement bars, as well as re-bars; structural steels, such as channels, angles, beams, and flats; and binding wires under the Kamdhenu brand name. It also provides plywood, block boards, flush doors, and molded designer doors; and PVC products, including casting, SWR, agriculture, ASTM, and HDPE pipes, as well as rigid pipes and fittings, and sprinkler systems. In addition, the company offers emulsions, enamels, distempers, finishes, primers, and ancillary products under the Colour Dreamz brand name. Further, it provides tinting machines; constructs residential housing projects; and generates wind power. The company offers its products through a network of dealers and distributors, as well as exports its products. Kamdhenu Ispat Limited was incorporated in 1994 and is based in Gurgaon, India.