Madras Fertilizers CAPEX surged on 208% while Revenue dropped on 17.7%
27-05-2016 • About Madras Fertilizers (
$MADRASFERT) • By InTwits
Madras Fertilizers reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -0.9%
- EBITDA Margin is quite volatile: -0.9% in FY2016, -10.7% in FY2015, 61.2% in FY2014, 31.7% in FY2013, 64.5% in FY2012
- Madras Fertilizers has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: ₹149m in FY2016, ₹49m in FY2015, ₹79m in FY2014, ₹311m in FY2013, ₹386m in FY2012
- The company has unprofitable business model: ROIC is -6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 17.7%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.8 pp from -10.7% to -0.88% in FY2016.
Net Income margin dropped on 28.4 pp from -40.0% to -68.5% in FY2016. Net Income margin declined at -25.3 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.4% in FY2016. Madras Fertilizers's CAPEX/Revenue decreased on 2.0 pp from 7.4% in FY2013 to 5.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.0%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 1.4%.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 77.4% while cash jumped on 82.9%.
Madras Fertilizers has short term refinancing risk: cash is only 3.9% of short term debt.
Financial and operational results
Madras Fertilizers ($MADRASFERT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,167 | 4,199 | 3,585 | 3,365 | 2,769 | -17.7% |
| EBITDA | 2,041 | 1,331 | 2,195 | -359 | -25 | |
| Net Income | 1,120 | 244 | 1,000 | -1,347 | -1,895 | |
Balance Sheet
|
|---|
| Cash | 571 | 58 | 228 | 177 | 323 | 82.9% |
| Short Term Debt | 4,723 | 6,107 | 8,904 | 3,594 | 8,201 | 128.2% |
| Long Term Debt | 3,077 | 2,620 | 2,292 | 1,965 | 1,661 | -15.5% |
Cash flow
|
|---|
| Capex | 386 | 311 | 79 | 49 | 149 | 207.8% |
Ratios
|
|---|
| Revenue growth | 17.3% | 32.6% | -14.6% | -6.1% | -17.7% | |
| EBITDA growth | 56.4% | -34.8% | 64.9% | -116.3% | -93.2% | |
|
|---|
| EBITDA Margin | 64.5% | 31.7% | 61.2% | -10.7% | -0.9% | 9.8% |
| Net Income Margin | 35.4% | 5.8% | 27.9% | -40.0% | -68.5% | -28.4% |
| CAPEX, % of revenue | 12.2% | 7.4% | 2.2% | 1.4% | 5.4% | 4.0% |
|
|---|
| ROIC | 44.7% | 18.0% | 23.9% | -9.5% | -6.1% | 3.4% |
| Net Debt/EBITDA | 3.5x | 6.5x | 5.0x | | |
Peers in
Below you can find Madras Fertilizers benchmarking vs. other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | - | -14.4% | -1.2% | 49.3% | -9.8% |
| Indbulbbph ($INDBULBBPH) | - | -6.5% | 33.5% | 49.2% | 0.9% |
| Monetbbph ($MONETBBPH) | 22.3% | 3.7% | 11.6% | 40.8% | - |
| Asleyf ($ASLEYF) | - | -3.3% | -8.0% | 33.6% | 34.7% |
| Bharat Rasayan ($BHARATRA) | 51.3% | 32.1% | 92.7% | 21.4% | - |
| |
|---|
| Median (17 companies) | 20.2% | 9.7% | 3.9% | 9.1% | 7.7% |
|---|
| Madras Fertilizers ($MADRASFERT) | - | 32.6% | -14.6% | -6.1% | -17.7% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | - | - | - | 53.4% | - |
| Kaleconbbph ($KALECONBBPH) | 27.7% | 44.3% | 43.5% | 37.9% | - |
| Paushak ($PAUSHAK) | - | - | - | 25.6% | - |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | - | - | - | 24.7% | - |
| Indbulbbph ($INDBULBBPH) | 36.7% | 34.6% | 29.5% | 23.5% | 28.7% |
| |
|---|
| Median (20 companies) | 15.1% | 13.4% | 13.4% | 10.8% | 9.9% |
|---|
| Madras Fertilizers ($MADRASFERT) | 64.5% | 31.7% | 61.2% | -10.7% | -0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 131.4% | 5.2% | 139.2% | 89.2% | - |
| Jklakbbph ($JKLAKBBPH) | 28.5% | 28.8% | 24.6% | 23.6% | 17.5% |
| Rilbbph ($RILBBPH) | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% |
| Gkw ($GKW) | - | - | - | 15.5% | - |
| Paushak ($PAUSHAK) | - | - | - | 12.3% | - |
| |
|---|
| Median (17 companies) | 8.6% | 5.2% | 4.9% | 5.0% | 1.7% |
|---|
| Madras Fertilizers ($MADRASFERT) | 12.2% | 7.4% | 2.2% | 1.4% | 5.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaleconbbph ($KALECONBBPH) | - | 89.0% | 103.8% | 81.0% | - |
| Bharat Rasayan ($BHARATRA) | 22.1% | 13.7% | 21.9% | 26.1% | - |
| Uplbbph ($UPLBBPH) | 17.1% | 15.9% | 18.2% | 22.1% | 22.2% |
| Rane Brake Lining ($RANEBRAKE) | 14.1% | 7.9% | 11.1% | 12.8% | 21.2% |
| Merckbbph ($MERCKBBPH) | 21.3% | 13.1% | 8.6% | 10.6% | - |
| |
|---|
| Median (28 companies) | 8.4% | 6.7% | 5.6% | 4.9% | 4.1% |
|---|
| Madras Fertilizers ($MADRASFERT) | 44.7% | 18.0% | 23.9% | -9.5% | -6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 9.8x | 16.3x | 27.4x | 140.3x | - |
| Indbulbbph ($INDBULBBPH) | 4.3x | 4.8x | 5.5x | 9.6x | 6.5x |
| Jklakbbph ($JKLAKBBPH) | 2.1x | 2.3x | 5.3x | 5.5x | 8.3x |
| Asleyf ($ASLEYF) | 2.5x | 5.0x | 17.8x | 5.0x | 3.1x |
| Rane Engine Valve ($RANENGIN) | 2.1x | 11.3x | 4.5x | 4.8x | 25.4x |
| |
|---|
| Median (17 companies) | 1.7x | 1.8x | 2.0x | 1.1x | 3.1x |
|---|
