Patel Integrated Logistics reports 13.0% revenue decline in FY2016 and 0.50 pp EBITDA Margin growth from 3.7% to 4.2%
27-05-2016 • About Patel Integrated Logistics (
$PATINTLOG) • By InTwits
Patel Integrated Logistics reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.2% in FY2016 vs. 3.7% in FY2015 vs. 3.7% in FY2012
- The company has business model with average profitability: ROIC is 11.5%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Patel Integrated Logistics's Revenue dropped on 13.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.50 pp from 3.7% to 4.2% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 3.0% and was growing since that time.
Net Income margin increased slightly on 0.62 pp from 1.0% to 1.6% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 0.43% and was growing since that time.
Return on investment
The company operates at low ROIC (11.5%) and ROE (8.5%). ROIC decreased slightly on 0.97 pp from 12.5% to 11.5% in FY2016. ROE increased slightly on 1.8 pp from 6.6% to 8.5% in FY2016. ROE followed a growing trend at 1.5 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.5x. Net Debt / EBITDA dropped on 0.4x from 1.5x to 1.1x in FY2016. Debt surged on 12.2% while cash jumped on 105%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 1.8x and was declining since that time.
Patel Integrated Logistics has short term refinancing risk: cash is only 68.8% of short term debt.
Valuation and dividends
Patel Integrated Logistics's trades at EV/EBITDA 7.9x and P/E 17.7x while industy averages are 17.8x and 21.9x.
Financial and operational results
Patel Integrated Logistics ($PATINTLOG) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,524 | 5,099 | 5,431 | 5,880 | 5,112 | -13.0% |
| EBITDA | 167 | 170 | 163 | 220 | 217 | -1.3% |
| Net Income | 27 | 24 | 23 | 60 | 84 | 39.8% |
Balance Sheet
|
|---|
| Cash | 159 | 172 | 155 | 146 | 299 | 105.1% |
| Short Term Debt | 288 | 325 | 352 | 374 | 435 | 16.3% |
| Long Term Debt | 104 | 104 | 103 | 104 | 101 | -2.4% |
Cash flow
|
|---|
| Capex | 73 | | 32 | 38 | | |
Ratios
|
|---|
| Revenue growth | 5.6% | 12.7% | 6.5% | 8.2% | -13.0% | |
| EBITDA growth | 15.8% | 2.2% | -4.3% | 34.9% | -1.3% | |
|
|---|
| EBITDA Margin | 3.7% | 3.3% | 3.0% | 3.7% | 4.2% | 0.5% |
| Net Income Margin | 0.6% | 0.5% | 0.4% | 1.0% | 1.6% | 0.6% |
| CAPEX, % of revenue | 1.6% | | 0.6% | 0.6% | | |
|
|---|
| ROIC | 9.5% | 9.0% | 8.5% | 12.5% | 11.5% | -1.0% |
| ROE | 3.1% | 2.7% | 2.6% | 6.6% | 8.5% | 1.8% |
| Net Debt/EBITDA | 1.4x | 1.5x | 1.8x | 1.5x | 1.1x | -0.4x |
Peers in Surface Transportation
Below we provide Patel Integrated Logistics benchmarking against other companies in Surface Transportation 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inter State Oil Carrier ($INTSTOIL) | 7.7% | -13.5% | 1.8% | 14.7% | - |
| Mahasagar Travels ($MHSGRMS) | 24.6% | -6.4% | 9.4% | 12.6% | - |
| Transport Corporation Of India ($TCI) | 5.5% | 9.0% | 4.5% | 8.5% | - |
| Chartered Logistics ($CHLOGIST) | 39.5% | -2.6% | -35.6% | 8.4% | - |
| |
|---|
| Median (4 companies) | 16.1% | -4.5% | 3.2% | 10.6% | - |
|---|
| Patel Integrated Logistics ($PATINTLOG) | - | 12.7% | 6.5% | 8.2% | -13.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Transport Corporation Of India ($TCI) | 8.2% | 8.3% | 7.7% | 8.2% | - |
| Coastal Roadways ($COARO) | - | - | - | 4.6% | - |
| Mahasagar Travels ($MHSGRMS) | 9.3% | - | - | 2.8% | - |
| |
|---|
| Median (3 companies) | 10.5% | 10.3% | 7.7% | 4.6% | - |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 3.7% | 3.3% | 3.0% | 3.7% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Transport Corporation Of India ($TCI) | 5.9% | 3.1% | 3.6% | 5.9% | - |
| |
|---|
| Median (1 company) | 5.9% | 3.1% | 2.2% | 5.9% | - |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 1.6% | - | 0.6% | 0.6% | - |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Transport Corporation Of India ($TCI) | 16.5% | 16.2% | 14.4% | 15.0% | - |
| Balurghat Technologies ($BALTE) | - | - | - | - | - |
| Coastal Roadways ($COARO) | 8.9% | 4.0% | - | - | - |
| Chartered Logistics ($CHLOGIST) | 17.3% | 10.7% | -0.3% | - | - |
| Inter State Oil Carrier ($INTSTOIL) | - | -0.8% | - | - | - |
| |
|---|
| Median (6 companies) | 16.9% | 7.3% | 7.1% | 15.0% | - |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 9.5% | 9.0% | 8.5% | 12.5% | 11.5% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Transport Corporation Of India ($TCI) | 2.1x | 2.0x | 1.7x | 1.4x | - |
| Coastal Roadways ($COARO) | 0.9x | 1.7x | - | 0.0x | 0.0x |
| Mahasagar Travels ($MHSGRMS) | 0.5x | - | - | 0.0x | - |
| |
|---|
| Median (3 companies) | 1.5x | 2.0x | 0.9x | 0.0x | 0.0x |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 1.4x | 1.5x | 1.8x | 1.5x | 1.1x |
