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Coal India reports 11.1% CAPEX growth in 2016 and 5.0% Revenue growth

29-05-2016 • About Coal India ($COALINDIA) • By InTwits

Coal India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Coal India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 34.8%
  • CAPEX is quite volatile: ₹39,891m in FY2016, ₹59,776m in FY2015, ₹94,236m in FY2014, ₹118,710m in FY2013, ₹125,119m in FY2012
  • The company has highly profitable business model: ROIC is 41.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Coal India's Revenue increased on 5.0%. During the last 5 years Revenue growth bottomed in FY2014 at 0.74% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 21.1% to 24.0% in FY2016.

Net Income margin showed almost no change in FY2016. Net Income margin followed a declining trend at -1.6 pp per annum in the last 5 years.

Investments (CAPEX, working capital and M&A)


Coal India's CAPEX/Revenue was 7.2% in FY2016. The company's CAPEX/Revenue increased on 3.6 pp from 3.6% in FY2013 to 7.2% in FY2016. Average CAPEX/Revenue for the last three years was 6.7%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2013 at 3.6% and was growing since that time.

Return on investment


The company operates at high and attractive ROIC (41.1%) and ROE (38.4%). ROIC increased on 5.7 pp from 35.3% to 41.1% in FY2016. ROE increased on 5.3 pp from 33.2% to 38.4% in FY2016. ROIC stuck to a growing trend at 3.1 pp per annum in the last 5 years. During the last 5 years ROE bottomed in FY2015 at 33.2%.

Leverage (Debt)


Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 0.1x. Debt surged on 194% while cash dropped on 18.9%.

Coal India has no short term refinancing risk: cash is higher than short term debt (4,094.6%).

Financial and operational results


Coal India ($COALINDIA) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue624,154683,027688,100720,146756,4435.0%
EBITDA157,654182,133178,141173,518183,2335.6%
Net Income147,882173,564151,117137,267142,7434.0%
Balance Sheet
Cash582,028622,360523,895472,689383,128-18.9%
Short Term Debt2,2202,275672,0659,357353.1%
Long Term Debt13,05410,7781,7152,0182,63130.3%
Cash flow
Capex34,09424,54041,16449,01454,45111.1%
Ratios
Revenue growth24.3%9.4%0.7%4.7%5.0%
EBITDA growth16.8%15.5%-2.2%-2.6%5.6%

EBITDA Margin25.3%26.7%25.9%24.1%24.2%0.1%
Net Income Margin23.7%25.4%22.0%19.1%18.9%-0.2%
CAPEX, % of revenue5.5%3.6%6.0%6.8%7.2%0.4%

ROIC28.7%28.9%30.3%35.3%41.1%5.7%
ROE40.1%39.0%33.3%33.2%38.4%5.3%
Net Debt/EBITDA-3.6x-3.3x-2.9x-2.7x-2.0x0.7x

Peers in Coal


Below you can find Coal India benchmarking vs. other companies in Coal 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  FY2012 FY2013 FY2014 FY2015 FY2016
Gujarat Mineral Development Corporation ($GMDCLTD)-2.3%-22.7%11.6%-16.4%
Gujarat Nre Coke ($GUJNRECOKE)-22.9%45.1%-54.1%-59.4%-
Gujarat Nre Coke ($GUJNREDVR)-22.9%45.1%-54.1%-59.4%-
 
Median (3 companies)-22.9%45.1%-54.1%-59.4%-16.4%
Coal India ($COALINDIA)-9.4%0.7%4.7%5.0%


Top companies by EBITDA margin, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gujarat Mineral Development Corporation ($GMDCLTD)47.4%55.5%47.9%36.3%27.2%
Gujarat Nre Coke ($GUJNRECOKE)36.0%30.8%-76.1%-36.3%-
Gujarat Nre Coke ($GUJNREDVR)36.0%30.8%-76.1%-36.3%-
 
Median (3 companies)36.0%30.8%-76.1%-36.3%27.2%
Coal India ($COALINDIA)25.3%26.7%25.9%24.1%24.2%


Top companies by CAPEX/Revenue, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gujarat Mineral Development Corporation ($GMDCLTD)20.5%9.9%15.1%5.3%29.0%
Gujarat Nre Coke ($GUJNRECOKE)103.1%47.0%0.0%0.0%-
Gujarat Nre Coke ($GUJNREDVR)103.1%47.0%0.0%0.0%-
 
Median (3 companies)103.1%47.0%0.0%0.0%29.0%
Coal India ($COALINDIA)5.5%3.6%6.0%6.8%7.2%


Top companies by ROIC, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gujarat Mineral Development Corporation ($GMDCLTD)28.9%30.8%16.3%10.6%4.6%
Gujarat Nre Coke ($GUJNRECOKE)5.7%4.2%-13.3%-5.0%-
Gujarat Nre Coke ($GUJNREDVR)5.7%4.2%-13.3%-5.0%-
 
Median (3 companies)5.7%4.2%-13.3%-5.0%4.6%
Coal India ($COALINDIA)28.7%28.9%30.3%35.3%41.1%


Top companies by Net Debt / EBITDA

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gujarat Mineral Development Corporation ($GMDCLTD)-0.0x-0.0x-0.0x1.3x2.5x
 
Median (1 company)7.5x7.4x-0.0x1.3x2.5x
Coal India ($COALINDIA)-3.6x-3.3x-2.9x-2.7x-2.0x