Avt Natural Products Net Income dropped on 18.0% while Revenue increased on 5.0%
30-05-2016 • About Avt Natural Products (
$AVTNPL) • By InTwits
Avt Natural Products reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avt Natural Products is a growth stock: FY2016 revenue growth was 5.0%, 5 year revenue CAGR was 13.2% at FY2016 ROIC 15.1%
- EBITDA Margin is declining: 14.4% in FY2016 vs. 17.5% in FY2015 vs. 37.6% in FY2012
- EBITDA Margin is quite volatile: 14.4% in FY2016, 17.5% in FY2015, 25.9% in FY2014, 30.8% in FY2013, 37.6% in FY2012
- Avt Natural Products has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: ₹100m in FY2016, ₹111m in FY2015, ₹228m in FY2014, ₹30m in FY2013, ₹894m in FY2012
- The company has highly profitable business model: ROIC is 15.1%
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 increased on 5.0%. During FY2012-FY2016 Revenue growth bottomed in FY2015 at -6.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 8.2% to 12.4% in FY2016. EBITDA Margin followed a declining trend at -6.0 pp per annum in the last 5 years.
Net Income margin decreased on 2.2 pp from 10.1% to 7.9% in FY2016. Net Income margin stuck to a declining trend at -3.8 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Avt Natural Products had CAPEX/Revenue of 3.8%. The company's CAPEX/Revenue decreased slightly on 1.1 pp from 5.0% in FY2013 to 3.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at good ROIC (15.1%) while ROE is low (11.2%). ROIC decreased on 3.9 pp from 19.0% to 15.1% in FY2016. ROE decreased on 3.7 pp from 14.9% to 11.2% in FY2016. ROIC stuck to a declining trend at -10.9 pp per annum in the last 5 years. ROE followed a declining trend at -14.1 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 0.2x. Net Debt / EBITDA jumped on 0.2x from -0.1x to 0.045x in FY2016. Debt surged on 43.3% while cash dropped on 33.6%. During the last 5 years Net Debt/EBITDA bottomed in FY2015 at -0.1x.
Avt Natural Products has short term refinancing risk: cash is only 81.7% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 11.7x and P/E 21.3x while industy averages are 17.8x and 21.9x. Avt Natural Products's EV/(EBITDA-CAPEX) is 15.9x with the industry average at 22.8x.
Financial and operational results
Avt Natural Products ($AVTNPL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,386 | 2,670 | 2,806 | 2,613 | 2,745 | 5.0% |
| EBITDA | 896 | 823 | 726 | 457 | 396 | -13.4% |
| Net Income | 548 | 478 | 421 | 264 | 216 | -18.0% |
Balance Sheet
|
|---|
| Cash | 29 | 83 | 125 | 120 | 80 | -33.6% |
| Short Term Debt | 361 | 346 | 54 | 68 | 98 | 43.3% |
| Long Term Debt | 26 | 9 | 1 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 55 | 133 | 92 | 106 | 105 | -0.4% |
Ratios
|
|---|
| Revenue growth | 61.7% | 11.9% | 5.1% | -6.9% | 5.0% | |
| EBITDA growth | 250.9% | -8.2% | -11.8% | -37.0% | -13.4% | |
|
|---|
| EBITDA Margin | 37.6% | 30.8% | 25.9% | 17.5% | 14.4% | -3.1% |
| Net Income Margin | 23.0% | 17.9% | 15.0% | 10.1% | 7.9% | -2.2% |
| CAPEX, % of revenue | 2.3% | 5.0% | 3.3% | 4.0% | 3.8% | -0.2% |
|
|---|
| ROIC | 58.2% | 41.5% | 32.8% | 19.0% | 15.1% | -3.9% |
| ROE | 69.3% | 39.8% | 27.5% | 14.9% | 11.2% | -3.7% |
| Net Debt/EBITDA | 0.4x | 0.3x | -0.1x | -0.1x | 0.0x | 0.2x |
Peers in Other Agricultural Products
Below we provide Avt Natural Products benchmarking against other companies in Other Agricultural Products 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 |
|---|
| Modi Naturals ($MODINATUR) | - | 16.2% | 8.3% | 11.5% | 15.4% |
| Olympic Oil Industries ($OLYOI) | - | 160.6% | 21.1% | -7.8% | 5.2% |
| Agro Tech Foods ($ATFL) | - | 12.1% | -3.2% | -0.8% | 3.2% |
| Freshtrop Fruits ($FRSHTRP) | - | 43.8% | 29.1% | 0.0% | 0.1% |
| Kohinoor Foods ($KOHINOOR) | - | 13.4% | 16.2% | -5.9% | -2.6% |
| |
|---|
| Median (7 companies) | 6.0% | 35.2% | 16.2% | 0.0% | 0.1% |
|---|
| Avt Natural Products ($AVTNPL) | - | 11.9% | 5.1% | -6.9% | 5.0% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Indrayani Biotech ($INDRANIB) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 20.7% | 19.6% | 21.9% | 26.7% | 21.3% |
| Freshtrop Fruits ($FRSHTRP) | 9.3% | 8.9% | 9.8% | 14.1% | 13.4% |
| Agro Tech Foods ($ATFL) | 7.6% | 8.3% | 9.2% | 8.0% | 7.3% |
| Vikas Granaries ($VIKASGRAN) | 10.6% | 14.2% | 9.8% | 5.0% | - |
| Anik Industries ($ANIKINDS) | 3.3% | 3.1% | 1.3% | 4.1% | - |
| |
|---|
| Median (9 companies) | 4.7% | 8.3% | 9.8% | 4.1% | 9.1% |
|---|
| Avt Natural Products ($AVTNPL) | 37.6% | 30.8% | 25.9% | 17.5% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 2.9% | 5.9% | 2.5% | 7.1% | 2.9% |
| Agro Tech Foods ($ATFL) | 4.1% | 6.0% | 6.3% | 5.6% | 5.7% |
| Kohinoor Foods ($KOHINOOR) | 1.6% | 1.5% | 1.0% | 0.3% | - |
| |
|---|
| Median (3 companies) | 1.0% | 2.9% | 2.5% | 5.6% | 4.3% |
|---|
| Avt Natural Products ($AVTNPL) | 2.3% | 5.0% | 3.3% | 4.0% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 27.5% | 41.1% | 46.8% | 45.9% | 19.3% |
| Agro Tech Foods ($ATFL) | 24.0% | 25.3% | 21.2% | 13.9% | 10.2% |
| Kohinoor Foods ($KOHINOOR) | 3.1% | 8.8% | 10.3% | -1.3% | 8.1% |
| Indrayani Biotech ($INDRANIB) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Flex Foods ($FLEXFO) | 12.6% | 8.9% | - | - | - |
| |
|---|
| Median (11 companies) | 8.3% | 8.9% | 15.7% | 7.0% | 9.1% |
|---|
| Avt Natural Products ($AVTNPL) | 58.2% | 41.5% | 32.8% | 19.0% | 15.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kohinoor Foods ($KOHINOOR) | 19.2x | 7.8x | 6.1x | 296.6x | 8.1x |
| Agro Tech Foods ($ATFL) | -0.8x | -0.2x | 0.1x | 0.3x | 1.6x |
| Unique Organics ($UNIQUEO) | - | 0.0x | 0.0x | 0.0x | - |
| Freshtrop Fruits ($FRSHTRP) | 3.3x | 2.5x | 0.0x | 0.0x | 0.0x |
| Modi Naturals ($MODINATUR) | 3.9x | 2.2x | - | 0.0x | - |
| |
|---|
| Median (9 companies) | 3.6x | 2.4x | 0.0x | 0.0x | 0.0x |
|---|
| Avt Natural Products ($AVTNPL) | 0.4x | 0.3x | -0.1x | -0.1x | 0.0x |
