Vadilal Industries EBITDA surged on 52.4% and EBITDA Margin increased on 3.3 pp from 8.9% to 12.2%
28-05-2016 • About Vadilal Industries (
$VADILALIND) • By InTwits
Vadilal Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vadilal Industries is a growth stock: FY2016 revenue growth was 10.8%, 5 year revenue CAGR was 13.3% at FY2016 ROIC 15.1%
- Vadilal Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: ₹127m in FY2016, ₹90m in FY2015, ₹218m in FY2014, ₹305m in FY2013, ₹347m in FY2012
- The company has highly profitable business model: ROIC is 15.1%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vadilal Industries's Revenue surged on 10.8%. Revenue decline was accelerating on average at -2.1 pp per annum in FY2012-FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.3 pp from 8.9% to 12.2% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 8.9%.
Net Income margin increased on 2.7 pp from 0.61% to 3.3% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at 0.61%.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.9%. Vadilal Industries showed decline in CAPEX/Revenue of 6.6 pp from 9.4% in FY2013 to 2.9% in FY2016. For the last three years the average CAPEX/Revenue was 3.7%. CAPEX as a % of Revenue followed a declining trend at -2.6 pp per annum in FY2012-FY2016.
Return on investment
The company operates at good ROIC (15.1%) and ROE (12.3%). ROIC increased on 7.2 pp from 7.9% to 15.1% in FY2016. ROE surged on 10.1 pp from 2.1% to 12.3% in FY2016. During FY2012-FY2016 ROE bottomed in FY2014 at 2.0% and was growing since that time.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.9x from 4.0x to 2.1x in FY2016. Debt dropped on 20.2% while cash dropped on 17.1%.
Vadilal Industries has short term refinancing risk: cash is only 4.9% of short term debt.
Financial and operational results
Vadilal Industries ($VADILALIND) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,846 | 3,237 | 3,673 | 4,026 | 4,459 | 10.8% |
| EBITDA | 564 | 374 | 413 | 358 | 545 | 52.4% |
| Net Income | 58 | 50 | 23 | 24 | 148 | 505.9% |
Balance Sheet
|
|---|
| Cash | 6 | 9 | 14 | 42 | 35 | -17.1% |
| Short Term Debt | 616 | 933 | 814 | 865 | 724 | -16.3% |
| Long Term Debt | 835 | 756 | 820 | 613 | 456 | -25.6% |
Cash flow
|
|---|
| Capex | 347 | 305 | 218 | 90 | 127 | 42.2% |
Ratios
|
|---|
| Revenue growth | 19.2% | 13.7% | 13.5% | 9.6% | 10.8% | |
| EBITDA growth | 134.7% | -33.7% | 10.5% | -13.4% | 52.4% | |
|
|---|
| EBITDA Margin | 19.8% | 11.6% | 11.2% | 8.9% | 12.2% | 3.3% |
| Net Income Margin | 2.0% | 1.6% | 0.6% | 0.6% | 3.3% | 2.7% |
| CAPEX, % of revenue | 12.2% | 9.4% | 5.9% | 2.2% | 2.9% | 0.6% |
|
|---|
| ROIC | 20.5% | 9.2% | 9.4% | 7.9% | 15.1% | 7.2% |
| ROE | 7.6% | 4.5% | 2.0% | 2.1% | 12.3% | 10.1% |
| Net Debt/EBITDA | 2.6x | 4.5x | 3.9x | 4.0x | 2.1x | -1.9x |
Peers in Packaged Foods
Below we provide Vadilal Industries benchmarking against other companies in Packaged Foods 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 |
|---|
| Simran Farms ($SIMRAN) | 38.4% | 23.8% | 27.5% | 23.4% | - |
| Heritage Foods ($HERITGFOOD) | - | 15.0% | 7.5% | 20.4% | 14.8% |
| Rcl Foods ($RCLFOODS) | -56.8% | -34.2% | 18.2% | 17.8% | - |
| Kwality ($KWALITY) | - | 62.6% | 27.5% | 17.3% | 9.1% |
| Umang Dairies ($UMANGDAIR) | - | 15.7% | 24.5% | 16.1% | -24.8% |
| |
|---|
| Median (18 companies) | 5.7% | 15.4% | 16.0% | 6.5% | 6.8% |
|---|
| Vadilal Industries ($VADILALIND) | - | 13.7% | 13.5% | 9.6% | 10.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zydus Wellness ($ZYDUSWELL) | 23.1% | 25.4% | 22.6% | 23.8% | 21.3% |
| Nestle India ($NESTLEIND) | 22.0% | 21.7% | 20.9% | 19.7% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.6% | 17.8% | 22.5% | 17.2% | 19.4% |
| Sampre Nutritions ($SAMPRE) | - | - | - | 16.8% | - |
| Krbl ($KRBL) | 14.1% | 14.2% | 15.1% | 15.4% | 15.8% |
| |
|---|
| Median (20 companies) | 7.2% | 7.1% | 8.6% | 6.6% | 10.4% |
|---|
| Vadilal Industries ($VADILALIND) | 19.8% | 11.6% | 11.2% | 8.9% | 12.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Venky'S (India) ($VENKYS) | 8.9% | 6.6% | 10.4% | 7.7% | 1.1% |
| Krbl ($KRBL) | 4.1% | 4.0% | 6.1% | 7.3% | 5.1% |
| Umang Dairies ($UMANGDAIR) | 2.0% | 4.4% | 2.7% | 3.2% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 2.7% | - | 4.3% | 2.5% | 1.4% |
| Heritage Foods ($HERITGFOOD) | 2.1% | 1.9% | 3.7% | 2.5% | 2.9% |
| |
|---|
| Median (10 companies) | 3.3% | 3.7% | 3.2% | 2.2% | 2.9% |
|---|
| Vadilal Industries ($VADILALIND) | 12.2% | 9.4% | 5.9% | 2.2% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kse ($KSE) | 27.7% | 14.1% | 36.9% | 69.0% | - |
| Britannia Industries ($BRITANNIA) | 24.6% | 33.7% | 54.0% | 59.4% | 66.7% |
| Nestle India ($NESTLEIND) | 57.7% | 47.9% | 49.6% | 40.2% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 44.6% | - | - | 36.2% | 35.7% |
| Umang Dairies ($UMANGDAIR) | 93.5% | 55.6% | 22.3% | 28.4% | - |
| |
|---|
| Median (22 companies) | 12.1% | 14.5% | 22.3% | 24.5% | 18.6% |
|---|
| Vadilal Industries ($VADILALIND) | 20.5% | 9.2% | 9.4% | 7.9% | 15.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kwality ($KWALITY) | 3.9x | 3.9x | 3.6x | 8.1x | 3.6x |
| Venky'S (India) ($VENKYS) | 2.6x | 2.8x | 6.7x | 3.9x | 3.6x |
| Bambino Agro Industries ($BAMBINO) | 3.2x | - | 3.2x | 2.9x | - |
| Krbl ($KRBL) | 4.1x | 2.9x | 3.0x | 2.7x | 2.1x |
| Heritage Foods ($HERITGFOOD) | 2.2x | 0.9x | 1.0x | 1.4x | 0.5x |
| |
|---|
| Median (18 companies) | 1.7x | 0.8x | 1.0x | 0.0x | 0.2x |
|---|
| Vadilal Industries ($VADILALIND) | 2.6x | 4.5x | 3.9x | 4.0x | 2.1x |
