Andhra Sugars reports 97.6% EBITDA growth in 2016 and 13.6% Revenue growth
28-05-2016 • About Andhra Sugars (
$ANDHRSUGAR) • By InTwits
Andhra Sugars reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.5% in FY2016, 7.2% in FY2015, 14.2% in FY2014, 19.1% in FY2013, 19.8% in FY2012
- Andhra Sugars has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 6.0%
- CAPEX is quite volatile: ₹1,437m in FY2016, ₹645m in FY2015, ₹763m in FY2014, ₹1,024m in FY2013, ₹2,139m in FY2012
- The company has business model with low profitability: ROIC is 8.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.7x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Andhra Sugars's Revenue surged on 13.6%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -10.8% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.9 pp from 8.2% to 17.1% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 7.2%.
Net Income margin increased on 4.9 pp from -0.44% to 4.5% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -0.44%.
Investments (CAPEX, working capital and M&A)
Andhra Sugars's CAPEX/Revenue was 6.5% in FY2016. CAPEX/Revenue increased on 2.2 pp from 4.2% in FY2013 to 6.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.6%. To fuel its fast growth the company invested a large share of EBITDA (51.9%) to CAPEX. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 3.2% and was growing since that time.
Return on investment
The company operates at low ROIC (8.6%) and ROE (8.4%). ROIC increased on 5.6 pp from 3.0% to 8.6% in FY2016. ROE increased on 9.2 pp from -0.74% to 8.4% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2015 at 3.0%. During the last 5 years ROE bottomed in FY2015 at -0.74%.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 3.9x to 1.7x in FY2016. Debt dropped on 13.6% while cash dropped on 23.4%.
Andhra Sugars has short term refinancing risk: cash is only 17.4% of short term debt.
Financial and operational results
Andhra Sugars ($ANDHRSUGAR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,432 | 12,322 | 10,991 | 11,075 | 12,582 | 13.6% |
| EBITDA | 2,261 | 2,354 | 1,563 | 795 | 1,571 | 97.6% |
| Net Income | 1,092 | 836 | 516 | -49 | 563 | |
Balance Sheet
|
|---|
| Cash | 177 | 266 | 231 | 275 | 211 | -23.4% |
| Short Term Debt | 2,024 | 1,426 | 830 | 1,874 | 1,210 | -35.4% |
| Long Term Debt | 1,359 | 1,361 | 1,576 | 1,485 | 1,690 | 13.8% |
Cash flow
|
|---|
| Capex | 604 | 523 | 354 | 448 | 815 | 82.1% |
Ratios
|
|---|
| Revenue growth | 33.8% | 7.8% | -10.8% | 0.8% | 13.6% | |
| EBITDA growth | 57.3% | 4.1% | -33.6% | -49.1% | 97.6% | |
|
|---|
| EBITDA Margin | 19.8% | 19.1% | 14.2% | 7.2% | 12.5% | 5.3% |
| Net Income Margin | 9.6% | 6.8% | 4.7% | -0.4% | 4.5% | 4.9% |
| CAPEX, % of revenue | 5.3% | 4.2% | 3.2% | 4.0% | 6.5% | 2.4% |
|
|---|
| ROIC | 15.8% | 15.4% | 8.5% | 3.0% | 8.6% | 5.6% |
| ROE | 20.5% | 13.8% | 7.9% | -0.7% | 8.4% | 9.2% |
| Net Debt/EBITDA | 1.4x | 1.1x | 1.4x | 3.9x | 1.7x | -2.2x |
Peers in Commodity Chemicals
Below you can find Andhra Sugars benchmarking vs. other companies in Commodity Chemicals 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | - | -27.9% | -83.3% | 408.0% | 18.3% |
| Jayshree Chemicals ($JAYCH) | 288.9% | 17.5% | -75.2% | 262.3% | - |
| Jagran Production ($JAGPRO) | - | 4.4% | 514.9% | 192.3% | -32.9% |
| Shree Hari Chemicals Export ($SHHARICH) | -2.5% | -78.0% | 299.5% | 111.6% | - |
| Jindal Poly Films ($JINDPOLBBPH) | -17.2% | -6.3% | 131.7% | 46.9% | - |
| |
|---|
| Median (37 companies) | 27.6% | 11.2% | 11.5% | 6.3% | -0.6% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | - | 7.8% | -10.8% | 0.8% | 13.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | - | - | - | 104.7% | - |
| Mysore Petro Chemicals ($MYSORPETRO) | - | - | - | 47.1% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 26.8% | 27.1% | 23.6% | 21.9% | - |
| Indo Borax & Chemicals ($INDOBORAX) | - | - | - | 21.3% | - |
| Chemfab Alkalis ($CHEMFALKAL) | 22.3% | 32.9% | 24.2% | 19.8% | 23.2% |
| |
|---|
| Median (50 companies) | 9.6% | 8.3% | 8.5% | 6.6% | 10.2% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 19.8% | 19.1% | 14.2% | 7.2% | 12.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 25.1% | 6.0% | 13.4% | 40.3% | 28.7% |
| Aditya Birla Chemicals (India) ($ABCIL) | 136.9% | 24.2% | 30.8% | 15.0% | - |
| Aarti Industries ($AARTIIND) | 8.0% | 11.2% | 11.0% | 10.4% | 16.8% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 15.7% | 9.4% | 5.4% | 5.4% | 3.6% |
| |
|---|
| Median (21 companies) | 5.2% | 7.2% | 5.9% | 3.2% | 4.7% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 5.3% | 4.2% | 3.2% | 4.0% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bodal Chemicals ($BODALCHEM) | -1.3% | 3.3% | 39.0% | 38.3% | 33.1% |
| Elantas Beck India ($ELANTAS) | 20.4% | 33.9% | 31.0% | 36.6% | - |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% |
| Aarti Industries ($AARTIIND) | 15.9% | 19.1% | 17.2% | 17.9% | 19.3% |
| Transpek Industry ($TRANSPEK) | -1.7% | 14.2% | 11.0% | 17.8% | 26.9% |
| |
|---|
| Median (60 companies) | 9.0% | 9.5% | 9.9% | 9.6% | 14.7% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 15.8% | 15.4% | 8.5% | 3.0% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.8x | 4.5x | 3.7x | 35.4x | 8.8x |
| India Glycols ($INDIAGLYCO) | 4.8x | 3.7x | 8.5x | 14.2x | 6.7x |
| Godrej Industries ($GODREJIND) | 9.9x | 5.7x | 7.9x | 10.7x | 10.0x |
| Kanoria Chemicals & Industries ($KANORICHEM) | 5.2x | 9.6x | 3.5x | 9.4x | 10.1x |
| Garware Polyester ($GARWARPOLY) | 2.2x | 3.8x | 4.0x | 5.2x | 3.1x |
| |
|---|
| Median (37 companies) | 2.6x | 3.2x | 0.8x | 0.9x | 1.0x |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 1.4x | 1.1x | 1.4x | 3.9x | 1.7x |
