Modern Steels EBITDA surged on 139% while Revenue dropped on 15.3%
28-05-2016 • About Modern Steels (
$MDRNSTL) • By InTwits
Modern Steels reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Modern Steels is a company in decline: FY2016 revenue growth was -15.3%, 5 years revenue CAGR was -5.0%
- EBITDA Margin is quite volatile: 4.9% in FY2016, 1.7% in FY2015, 2.0% in FY2014, -1.2% in FY2013, 2.1% in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 15.3%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.2 pp from 1.7% to 4.9% in FY2016.
Net Income margin decreased on 8.7 pp from -3.8% to -12.5% in FY2016.
Management team
Krishan Kumar Goyal is a Modern Steels's CEO. Krishan Kumar Goyal has spent 42 years with the company.
Financial and operational results
Modern Steels ($MDRNSTL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,380 | 2,613 | 2,631 | 3,164 | 2,680 | -15.3% |
| EBITDA | 71 | -32 | 53 | 55 | 132 | 139.1% |
| Net Income | -98 | -137 | -107 | -122 | -336 | |
Balance Sheet
|
|---|
| Cash | 47 | 52 | | | | |
| Short Term Debt | 951 | 489 | | | | |
| Long Term Debt | 170 | 642 | | | | |
Cash flow
|
|---|
| Capex | 57 | | | | | |
Ratios
|
|---|
| Revenue growth | -2.6% | -22.7% | 0.7% | 20.3% | -15.3% | |
| EBITDA growth | -74.8% | -145.4% | -264.6% | 4.3% | 139.1% | |
|
|---|
| EBITDA Margin | 2.1% | -1.2% | 2.0% | 1.7% | 4.9% | 3.2% |
| Net Income Margin | -2.9% | -5.2% | -4.1% | -3.8% | -12.5% | -8.7% |
| CAPEX, % of revenue | 1.7% | | | | | |
|
|---|
| ROIC | 1.6% | -5.2% | | | | |
| ROE | -18.6% | -33.4% | | | | |
| Net Debt/EBITDA | 15.1x | | 0.0x | 0.0x | 0.0x |
Peers in Iron & Steel/Interm.Products
Below you can find Modern Steels benchmarking vs. other companies in Iron & Steel/Interm.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 |
|---|
| Ocl Iron And Steel ($OISL) | - | 5.5% | 86.6% | 69.1% | -65.1% |
| Uttam Galva Steels ($UTTAMSTL) | - | 11.0% | -13.2% | 55.0% | -1.6% |
| Maithan Alloys ($MAITHANALL) | - | 59.1% | 1.1% | 15.0% | 4.0% |
| Pennar Industries ($PENIND) | - | -8.5% | 0.5% | 12.7% | 3.4% |
| Vaswani Industries ($VASWANI) | 51.4% | -2.1% | 5.6% | 12.6% | - |
| |
|---|
| Median (34 companies) | 31.0% | 8.8% | 3.7% | -1.6% | -13.0% |
|---|
| Modern Steels ($MDRNSTL) | - | -22.7% | 0.7% | 20.3% | -15.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 37.5% | 30.5% | 28.1% | 29.8% | 17.2% |
| Sarda Energy & Minerals ($SARDAEN) | 16.3% | 21.5% | 21.3% | 21.5% | 13.5% |
| Bhushan Steel ($BHUSANSTL) | 31.2% | 32.3% | 28.1% | 20.4% | - |
| Jsw Steel ($JSWSTEEL) | 17.8% | 17.1% | 17.9% | 17.7% | 14.6% |
| Tata Metaliks ($TATAMETALI) | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% |
| |
|---|
| Median (31 companies) | 9.4% | 9.2% | 7.4% | 7.3% | 9.6% |
|---|
| Modern Steels ($MDRNSTL) | 2.1% | -1.2% | 2.0% | 1.7% | 4.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ocl Iron And Steel ($OISL) | 191.2% | 247.2% | 163.7% | 42.4% | - |
| Jindal Steel & Power ($JINDALSTEL) | 34.2% | 47.6% | 69.6% | 26.4% | 21.8% |
| Jayaswal Neco Industries ($JAYNECOIND) | 20.4% | 44.0% | 31.1% | 17.3% | 5.7% |
| Steel Authority Of India ($SAIL) | 20.9% | 20.7% | 19.3% | 16.9% | 17.3% |
| Bhushan Steel ($BHUSANSTL) | 47.2% | 44.0% | 50.4% | 16.2% | - |
| |
|---|
| Median (19 companies) | 10.4% | 11.7% | 8.3% | 5.3% | 6.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Metaliks ($TATAMETALI) | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% |
| Pennar Industries ($PENIND) | 26.8% | 18.4% | 12.3% | 15.7% | 16.6% |
| Maithan Alloys ($MAITHANALL) | 16.3% | 15.1% | 5.5% | 15.3% | 19.0% |
| Kirloskar Ferrous Industries ($KIRLFER) | 19.1% | 16.8% | 12.4% | 14.7% | 15.9% |
| Gallantt Metal ($GALLANTT) | 8.7% | 11.7% | 8.5% | 11.7% | - |
| |
|---|
| Median (42 companies) | 7.2% | 5.5% | 5.8% | 4.6% | 3.4% |
|---|
| Modern Steels ($MDRNSTL) | 1.6% | -5.2% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Visa Steel ($VISASTEEL) | 20.1x | - | 24.4x | 187.1x | - |
| Ismt ($ISMTLTD) | 5.3x | 9.8x | 19.9x | 48.3x | 0.0x |
| Kic Metaliks ($KAJARIR) | 9.2x | 3.0x | 18.2x | 19.8x | - |
| Ocl Iron And Steel ($OISL) | 164.7x | 1,935.8x | 41.6x | 19.4x | - |
| Bhushan Steel ($BHUSANSTL) | 6.3x | 8.6x | 12.9x | 17.7x | - |
| |
|---|
| Median (28 companies) | 4.6x | 4.4x | 4.2x | 2.2x | 0.9x |
|---|
| Modern Steels ($MDRNSTL) | 15.1x | - | 0.0x | 0.0x | 0.0x |
