Ruchi Infrastructure reports 697% EBITDA growth in 2016 and 120% Revenue growth
27-05-2016 • About Ruchi Infrastructure (
$RUCHINFRA) • By InTwits
Ruchi Infrastructure reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 1.8% in FY2016 vs. 0.5% in FY2015 vs. 1.7% in FY2012
- EBITDA Margin is quite volatile: 1.8% in FY2016, 0.5% in FY2015, 1.0% in FY2014, 1.9% in FY2013, 1.7% in FY2012
- The company has potentially unprofitable business model: ROIC is 6.0%
- It operates with high leverage: Net Debt/EBITDA is 6.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 120%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.2 pp from 3.6% to 9.8% in FY2016.
Net Income margin decreased slightly on 0.51 pp from 0.28% to -0.23% in FY2016.
Return on investment
The company operates at low but positive ROIC (6.0%) and negative ROE (-2.9%). ROIC increased on 7.3 pp from -1.3% to 6.0% in FY2016. ROE decreased on 2.4 pp from -0.54% to -2.9% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2015 at -1.3%. ROE followed a declining trend at -1.5 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 6.4x Net Debt / EBITDA and 6.8x Debt / EBITDA. Net Debt / EBITDA dropped on 45.7x from 52.1x to 6.4x in FY2016. Debt increased slightly on 1.9% while cash surged on 122%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2015 at 52.1x.
Ruchi Infrastructure has short term refinancing risk: cash is only 8.7% of short term debt.
Management team
The company's CFO is Ravindra Kakani. Ravindra Kakani has 4 years tenure at the company.
Financial and operational results
Ruchi Infrastructure ($RUCHINFRA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29,713 | 22,751 | 25,794 | 10,565 | 23,256 | 120.1% |
| EBITDA | 507 | 424 | 263 | 53 | 427 | 697.3% |
| Net Income | 96 | 57 | 10 | 30 | -53 | -274.7% |
Balance Sheet
|
|---|
| Cash | 1,887 | 196 | 235 | 77 | 170 | 122.1% |
| Short Term Debt | 2,120 | 2,449 | 3,040 | 2,850 | 1,957 | -31.3% |
| Long Term Debt | 1,317 | 1,002 | 693 | 14 | 962 | 6,778.3% |
Cash flow
|
|---|
| Capex | 185 | 32 | 24 | 210 | | |
Ratios
|
|---|
| Revenue growth | 44.0% | -23.4% | 13.4% | -59.0% | 120.1% | |
| EBITDA growth | -36.2% | -16.4% | -38.0% | -79.7% | 697.3% | |
|
|---|
| EBITDA Margin | 1.7% | 1.9% | 1.0% | 0.5% | 1.8% | 1.3% |
| Net Income Margin | 0.3% | 0.2% | 0.0% | 0.3% | -0.2% | -0.5% |
| CAPEX, % of revenue | 0.6% | 0.1% | 0.1% | 2.0% | | |
|
|---|
| ROIC | 4.5% | 3.5% | 1.9% | -1.3% | 6.0% | 7.3% |
| ROE | 3.4% | 1.3% | -1.6% | -0.5% | -2.9% | -2.4% |
| Net Debt/EBITDA | 3.1x | 7.7x | 13.3x | 52.1x | 6.4x | -45.7x |
Peers in Edible Oils
Below we provide Ruchi Infrastructure benchmarking against other companies in Edible Oils 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 |
|---|
| Ajanta Soya ($AJANTSOY) | 22.4% | 13.2% | 13.1% | 16.8% | - |
| Kriti Nutrients ($KRITINUT) | - | 2.7% | -37.8% | 6.4% | 15.4% |
| Gokul Refoils & Solvent ($GOKUL) | - | -11.7% | 10.9% | -8.3% | -42.3% |
| Natraj Proteins ($NATRAJPR) | 16.3% | 44.1% | 14.8% | -17.1% | - |
| Poona Dal & Oil Industries ($POONADAL) | - | 30.1% | -23.2% | -33.5% | 34.8% |
| |
|---|
| Median (8 companies) | 22.4% | 10.2% | 4.1% | -25.3% | 15.4% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | - | -23.4% | 13.4% | -59.0% | 120.1% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kriti Nutrients ($KRITINUT) | 3.8% | 2.2% | 4.2% | 4.6% | 4.2% |
| Gokul Refoils & Solvent ($GOKUL) | 0.5% | 1.5% | 2.8% | 1.7% | 1.6% |
| Poona Dal & Oil Industries ($POONADAL) | 1.9% | 1.2% | - | - | 1.2% |
| |
|---|
| Median (3 companies) | 2.6% | 1.9% | 3.5% | 1.6% | 1.6% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 1.7% | 1.9% | 1.0% | 0.5% | 1.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.8% | 0.4% | 0.4% | 0.9% | 0.1% |
| |
|---|
| Median (1 company) | 0.7% | 1.3% | 0.3% | 0.9% | 0.1% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 0.6% | 0.1% | 0.1% | 2.0% | - |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.1% | 2.8% | 10.9% | 6.9% | 5.6% |
| Murli Industries ($MURLIIND) | -12.3% | -8.8% | - | - | - |
| Sam Industries ($SAMINDUS) | 25.4% | 4.9% | - | - | - |
| Poona Dal & Oil Industries ($POONADAL) | 18.1% | 13.2% | - | - | - |
| Raj Oil Mills ($RAJOIL) | - | - | - | - | - |
| |
|---|
| Median (10 companies) | 14.7% | 8.7% | 11.8% | 6.9% | 5.6% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 4.5% | 3.5% | 1.9% | -1.3% | 6.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poona Dal & Oil Industries ($POONADAL) | -0.0x | -2.0x | - | - | 0.0x |
| Kriti Nutrients ($KRITINUT) | 0.3x | 1.0x | 0.0x | 0.0x | 0.0x |
| Gokul Refoils & Solvent ($GOKUL) | 46.9x | 8.9x | 2.3x | 3.7x | -0.2x |
| |
|---|
| Median (3 companies) | 1.1x | 2.0x | 0.0x | 0.0x | 0.0x |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 3.1x | 7.7x | 13.3x | 52.1x | 6.4x |
