Msp Steel & Power reports 325% EBITDA decline in 2016 and 17.5% Revenue decline
27-05-2016 • About Msp Steel & Power (
$MSPL) • By InTwits
Msp Steel & Power reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -1.2%
- EBITDA Margin is quite volatile: -1.2% in FY2016, 0.4% in FY2015, 13.8% in FY2014, 17.7% in FY2013, -1.1% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 9.8x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Msp Steel & Power's Revenue dropped on 17.5%. During the last 5 years Revenue growth topped in FY2013 at 60.6% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from 8.2% to 17.1% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 17.7% and was declining since that time.
Net Income margin dropped on 10.4 pp from -9.6% to -20.0% in FY2016. During the last 5 years Net Income margin topped in FY2013 at 2.2% and was declining since that time.
Management team
Msp Steel & Power's CFO is Kamal Kumar Jain. Kamal Kumar Jain has 5 years tenure at the company.
Financial and operational results
Msp Steel & Power ($MSPL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,739 | 9,217 | 11,929 | 10,831 | 8,938 | -17.5% |
| EBITDA | -63 | 1,635 | 1,650 | 46 | -105 | -325.4% |
| Net Income | -965 | 201 | 213 | -1,036 | -1,785 | |
Balance Sheet
|
|---|
| Cash | 51 | 26 | 20 | | | |
| Short Term Debt | 4,511 | 5,046 | 4,897 | | | |
| Long Term Debt | 5,302 | 5,493 | 5,956 | | | |
Cash flow
|
|---|
| Capex | 2,198 | 1,369 | 1,835 | | | |
Ratios
|
|---|
| Revenue growth | 19.7% | 60.6% | 29.4% | -9.2% | -17.5% | |
| EBITDA growth | -108.3% | -2,705.9% | 0.9% | -97.2% | -325.4% | |
|
|---|
| EBITDA Margin | -1.1% | 17.7% | 13.8% | 0.4% | -1.2% | -1.6% |
| Net Income Margin | -16.8% | 2.2% | 1.8% | -9.6% | -20.0% | -10.4% |
| CAPEX, % of revenue | 38.3% | 14.8% | 15.4% | | | |
|
|---|
| ROIC | -2.8% | 7.2% | 5.9% | | | |
| ROE | -28.1% | 3.8% | 3.1% | | | |
| Net Debt/EBITDA | | 6.4x | 6.6x | 0.0x | |
Peers in Iron & Steel Products
Below you can find Msp Steel & Power benchmarking vs. other companies in Iron & Steel Products 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 |
|---|
| Bedmutha Industries ($BEDMUTHA) | - | -7.4% | 2.7% | 44.6% | 52.8% |
| Remi Edelstahl Tubulars ($REMIEDEL) | 40.9% | -10.8% | -24.4% | 40.7% | - |
| Nile ($NILE) | - | -19.1% | 6.9% | 38.7% | 10.2% |
| Texmo Pipes & Products ($TEXMOPIPES) | - | 16.5% | 16.6% | 29.1% | -17.2% |
| Apl Apollo Tubes ($APLAPOLLO) | 54.5% | 44.2% | 24.3% | 25.7% | - |
| |
|---|
| Median (11 companies) | 40.9% | -7.4% | 6.9% | 12.0% | 0.6% |
|---|
| Msp Steel & Power ($MSPL) | - | 60.6% | 29.4% | -9.2% | -17.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gandhi Special Tubes ($GANDHITUBE) | - | - | - | 25.5% | - |
| National Fittings ($NATFIT) | - | - | - | 19.3% | - |
| Usha Martin ($USHAMART) | 13.2% | 18.1% | 18.7% | 16.5% | 8.5% |
| Shree Steel Wire Ropes ($SSWRL) | - | - | - | 12.5% | - |
| Lakshmi Precision Screws ($LAKPRE) | 15.9% | 16.2% | 7.0% | 12.4% | - |
| |
|---|
| Median (14 companies) | 6.5% | 6.0% | 6.6% | 6.4% | 6.2% |
|---|
| Msp Steel & Power ($MSPL) | -1.1% | 17.7% | 13.8% | 0.4% | -1.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Usha Martin ($USHAMART) | 21.6% | 23.5% | 29.0% | 13.2% | 9.2% |
| Apl Apollo Tubes ($APLAPOLLO) | 5.6% | 4.2% | 5.1% | 5.9% | - |
| Gandhi Special Tubes ($GANDHITUBE) | - | - | - | 4.0% | - |
| |
|---|
| Median (3 companies) | 5.8% | 1.6% | 17.1% | 5.9% | 9.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 18.2% | 19.5% | 16.0% | 16.6% | - |
| Lakshmi Precision Screws ($LAKPRE) | 14.4% | 11.9% | 3.1% | 11.9% | - |
| Gandhi Special Tubes ($GANDHITUBE) | 28.3% | 18.9% | 13.2% | 11.1% | 13.3% |
| Usha Martin ($USHAMART) | 4.3% | 6.5% | 7.6% | 5.6% | 0.7% |
| Gujarat Containers ($GUJCONT) | - | 20.0% | - | - | - |
| |
|---|
| Median (24 companies) | 8.5% | 8.7% | 7.6% | 11.5% | 7.0% |
|---|
| Msp Steel & Power ($MSPL) | -2.8% | 7.2% | 5.9% | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Usha Martin ($USHAMART) | 10.0x | 4.8x | 4.8x | 5.2x | 11.4x |
| Lakshmi Precision Screws ($LAKPRE) | 2.7x | 3.4x | 8.1x | 4.4x | - |
| Apl Apollo Tubes ($APLAPOLLO) | 2.7x | 2.8x | 3.1x | 2.3x | - |
| Uni Abex Alloy Products ($UNIABEXAL) | 0.0x | 1.6x | 0.0x | 0.0x | - |
| National Fittings ($NATFIT) | 0.8x | 0.1x | 0.0x | 0.0x | - |
| |
|---|
| Median (12 companies) | 2.6x | 3.1x | 0.0x | 0.0x | 0.0x |
|---|
| Msp Steel & Power ($MSPL) | - | 6.4x | 6.6x | 0.0x | - |
