Loyal Textile Mills revenue dropped on 17.4%

27-05-2016 • About Loyal Textile Mills ($LOYALTEX) • By InTwits

Loyal Textile Mills reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Loyal Textile Mills's Revenue dropped on 17.4%. During FY2012-FY2016 Revenue growth topped in FY2013 at 43.0% and was decelerating since that time.

Net Income margin increased slightly on 1.2 pp from 1.1% to 2.4% in FY2016. Net Income margin grew at 0.59 pp per annum in FY2012-FY2016.

Leverage (Debt)

Debt level is 2.8x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA jumped2.8x from to 2.8x in FY2016. Debt surged while cash surged.

Loyal Textile Mills has short term refinancing risk: cash is only 2.0% of short term debt.

Valuation and dividends

Loyal Textile Mills's trades at EV/EBITDA 4.4x and P/E 9.7x while industy averages are 17.8x and 21.9x.

Financial and operational results

Loyal Textile Mills ($LOYALTEX) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	8,722	12,474	16,036	13,309	10,991	-17.4%
EBITDA	972	10,232	1,741		1,522
Net Income	-19	50	197	150	260	73.2%
Balance Sheet
Cash	252	4			49
Short Term Debt	2,399	2,180			2,436
Long Term Debt	4,243	3,833			1,803
Cash flow
Capex	1,639	732
Ratios
Revenue growth	-7.4%	43.0%	28.6%	-17.0%	-17.4%
EBITDA growth	-15.6%	952.4%	-83.0%

EBITDA Margin	11.1%	82.0%	10.9%		13.8%
Net Income Margin	-0.2%	0.4%	1.2%	1.1%	2.4%	1.2%
CAPEX, % of revenue	18.8%	5.9%

ROIC	3.7%	118.0%
ROE	-1.8%	4.6%
Net Debt/EBITDA	6.6x	0.6x	0.0x		2.8x

Peers in Textiles

Below you can find Loyal Textile Mills benchmarking vs. other companies in Textiles 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 5	FY2012	FY2013	FY2014	FY2015	FY2016
Olympia Industries ($OLYMPTX)	-58.0%	-96.6%	74,809.1%	1,749.9%	-
Shri Dinesh Mills ($SHRIDINE)	5.0%	5.1%	-76.5%	304.9%	-
Santaram Spinners ($SANTASPN)	6.0%	60.7%	-40.9%	112.0%	-
Asahi Industries ($ASAHIIND)	-	23.0%	24.4%	103.9%	-47.3%
Blue Chip Tex Industries ($BLUECHIPT)	-	12.9%	29.9%	56.1%	23.7%
Median (74 companies)	4.7%	8.9%	14.3%	0.2%	-3.4%
Loyal Textile Mills ($LOYALTEX)	-	43.0%	28.6%	-17.0%	-17.4%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Sil Investments ($SILINV)	-	-	-	93.8%	-
Swadeshi Polytex ($SWADPOL)	-	-	-	64.4%	-
Binny ($BINNY)	-	-	-	60.9%	-
Ruby Mills ($RUBYMILLS)	28.3%	25.1%	28.6%	29.3%	-
Premier Synthetics ($PREMSYN)	-	-	-	25.9%	-
Median (86 companies)	6.2%	9.3%	9.5%	7.2%	8.8%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Nitin Spinners ($NITINSPIN)	1.9%	2.6%	8.0%	42.3%	4.7%
Maharaja Shree Umaid Mills ($MAHASHR)	18.6%	24.1%	6.8%	16.8%	-
Jindal Worldwide ($JINDWORLD)	3.0%	10.5%	20.7%	11.6%	-
SRF ($SRF)	0.0%	18.7%	20.0%	11.4%	13.0%
Welspun India ($WELSPUNIND)	5.6%	7.8%	16.4%	10.9%	17.7%
Median (21 companies)	3.2%	5.3%	6.8%	6.7%	5.4%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Welspun India ($WELSPUNIND)	9.3%	15.6%	8.5%	21.9%	25.2%
Maharaja Shree Umaid Mills ($MAHASHR)	-0.5%	9.2%	8.3%	20.4%	-
Nitin Spinners ($NITINSPIN)	6.0%	19.5%	21.5%	17.5%	17.8%
Sutlej Textiles & Industries ($SUTLEJTEX)	9.5%	13.6%	19.8%	14.6%	14.4%
Arvind ($ARVIND)	11.3%	11.2%	13.7%	13.2%	13.1%
Median (127 companies)	3.5%	8.9%	8.9%	9.5%	12.3%
Loyal Textile Mills ($LOYALTEX)	3.7%	118.0%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bombay Rayon Fashions ($BRFL)	4.9x	4.9x	11.6x	10.0x	7.3x
Ruby Mills ($RUBYMILLS)	12.6x	15.3x	10.8x	8.6x	-
Dcm ($DCM)	13.5x	3.5x	3.7x	5.5x	-
Nahar Spinning Mills ($NAHARSPING)	70.8x	3.8x	3.2x	4.9x	-
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH)	10.0x	0.0x	0.0x	4.6x	-
Median (71 companies)	3.8x	3.2x	0.0x	0.0x	0.0x

Loyal Textile Mills stock price chart

Loyal Textile Mills financials

mln.	FY2010	FY2011	FY2012

Revenue	15,666	9,416	8,722
EBITDA	675.4	1,152	972.3
Net income	19.672	313.7	-19.400
CAPEX	107.4	1,915	1,639
Debt	3,577	6,272	6,642
Cash	20.689	118.8	252.1

About Loyal Textile Mills

Loyal Textile Mills Limited manufactures and sells products and services for textile and apparel industries in India. The company offers various types of yarns, including compact, melange, dyed polyester blended, kermal blended, carbon, and fancy yarns used for textiles, sewing, knitting, weaving, embroidery, etc. It also provides grey woven, dyed woven, grey knitted, and dyed knitted fabrics; and knitted and woven garments, such as long coats, pants, shirts, jackets, coats, etc. In addition, the company is involved in designing and lining bed linen, bathing items, and upholstery comprising flat fitted pillows, sharns, duvets, comfort shells, bed skirts, shower curtains, and sofa covers, as well as in processing organic cotton. Loyal Textile Mills Limited also exports its products to various countries, which primarily include Israel, Egypt, Turkey, the United States, the European Union countries, the United Kingdom, Japan, Thailand, South Korea, Dubai, Sri Lanka, Bangladesh, Brazil, Argentina, Columbia, Mexico, Taiwan, Vietnam, Iran, China, and Indonesia. The company was incorporated in 1946 and is based in Chennai, India.