Dcm Shriram Industries EBITDA Margin increased on 7.0 pp from to 7.0% in 2016

30-05-2016 • About Dcm Shriram Industries ($DCMSRMIND) • By InTwits

Dcm Shriram Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 5.6x.

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Dcm Shriram Industries's Revenue decreased on 5.7%. During FY2012-FY2016 Revenue growth topped in FY2014 at 20.0% and was decelerating since that time.

Net Income margin increased on 2.3 pp from 0.53% to 2.9% in FY2016.

Leverage (Debt)

Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is 4.2x. Net Debt / EBITDA jumped4.1x from to 4.1x in FY2016. Debt surged while cash jumped.

Dcm Shriram Industries has short term refinancing risk: cash is only 4.5% of short term debt.

Valuation and dividends

Dcm Shriram Industries's trades at EV/EBITDA 6.9x and P/E 7.0x while industy averages are 17.8x and 21.9x.

Financial and operational results

Dcm Shriram Industries ($DCMSRMIND) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	9,612	10,948	13,133	12,621	11,897	-5.7%
EBITDA	463	692	927		830
Net Income	-180	59	319	67	341	407.1%
Balance Sheet
Cash	144	118	40		125
Short Term Debt	2,894	3,332	2,170		2,767
Long Term Debt	941	739	815		725
Cash flow
Capex	234	295	275
Ratios
Revenue growth	8.7%	13.9%	20.0%	-3.9%	-5.7%
EBITDA growth	28.1%	49.7%	33.8%

EBITDA Margin	4.8%	6.3%	7.1%		7.0%
Net Income Margin	-1.9%	0.5%	2.4%	0.5%	2.9%	2.3%
CAPEX, % of revenue	2.4%	2.7%	2.1%

ROIC	4.0%	7.3%	11.2%
ROE	-7.9%	2.7%	13.9%
Net Debt/EBITDA	8.0x	5.7x	3.2x		4.1x

Peers in Sugar

Below we provide Dcm Shriram Industries benchmarking against other companies in Sugar 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
Dhampur Sugar Mills ($DHAMPURSUG)	-	-3.7%	23.1%	-2.5%	25.6%
Dalmia Bharat Sugar And Industries ($DALMIASUG)	-	35.8%	19.4%	-3.5%	1.4%
Rajshree Sugars & Chemicals ($RAJSREESUG)	-	13.7%	-3.0%	-22.9%	0.3%
Sakthi Sugars ($SAKHTISUG)	-	7.9%	-13.5%	-57.9%	-2.2%
Shree Renuka Sugars ($RENUKA)	-	-	11.5%	-12.6%	-2.6%
Median (9 companies)	-6.8%	10.8%	15.5%	-8.1%	-2.6%
Dcm Shriram Industries ($DCMSRMIND)	-	13.9%	20.0%	-3.9%	-5.7%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Dalmia Bharat Sugar And Industries ($DALMIASUG)	11.6%	15.0%	9.1%	9.9%	19.4%
Dhampur Sugar Mills ($DHAMPURSUG)	13.3%	15.0%	7.1%	8.4%	10.3%
K.M.Sugar Mills ($KMSUGAR)	6.8%	-	10.1%	-	8.5%
Rajshree Sugars & Chemicals ($RAJSREESUG)	12.2%	13.3%	6.9%	0.9%	6.0%
Sir Shadi Lal Enterprises ($SSLEL)	-4.6%	4.2%	-7.3%	-10.4%	5.7%
Median (8 companies)	11.5%	14.1%	8.3%	1.7%	5.8%
Dcm Shriram Industries ($DCMSRMIND)	4.8%	6.3%	7.1%	-	7.0%

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Shree Renuka Sugars ($RENUKA)	-	3.5%	2.6%	1.9%	9.7%
Dalmia Bharat Sugar And Industries ($DALMIASUG)	2.1%	14.6%	15.1%	4.4%	7.4%
Dhampur Sugar Mills ($DHAMPURSUG)	3.9%	6.0%	13.7%	2.8%	2.2%
Kcp Sugar & Industries Corporation ($KCPSUGIND)	1.3%	1.6%	0.4%	3.5%	2.0%
Median (4 companies)	2.0%	4.5%	2.6%	2.8%	4.8%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Dhampur Sugar Mills ($DHAMPURSUG)	-	8.4%	2.9%	5.2%	8.7%
Dalmia Bharat Sugar And Industries ($DALMIASUG)	3.6%	6.0%	4.4%	4.7%	7.9%
Kcp Sugar & Industries Corporation ($KCPSUGIND)	10.1%	21.0%	14.5%	-8.8%	2.1%
Shree Renuka Sugars ($RENUKA)	0.0%	6.6%	-1.2%	-9.3%	-13.8%
Sir Shadi Lal Enterprises ($SSLEL)	-11.2%	4.3%	-	-	-
Median (12 companies)	5.2%	6.3%	2.9%	2.1%	5.0%
Dcm Shriram Industries ($DCMSRMIND)	4.0%	7.3%	11.2%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Shree Renuka Sugars ($RENUKA)	-	4.0x	7.8x	13.5x	21.6x
Rajshree Sugars & Chemicals ($RAJSREESUG)	5.3x	4.2x	9.4x	0.0x	15.3x
Dhampur Sugar Mills ($DHAMPURSUG)	4.8x	6.4x	10.2x	9.8x	6.3x
Kcp Sugar & Industries Corporation ($KCPSUGIND)	2.4x	0.6x	1.3x	-	5.1x
Dalmia Bharat Sugar And Industries ($DALMIASUG)	7.5x	5.1x	7.1x	6.9x	4.0x
Median (9 companies)	4.8x	4.6x	7.1x	8.3x	4.0x
Dcm Shriram Industries ($DCMSRMIND)	8.0x	5.7x	3.2x	-	4.1x

Dcm Shriram Industries stock price chart

Dcm Shriram Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	14,687	8,846	9,612
EBITDA	918.8	361.0	462.6
Net income	391.7	-62.100	-180.164
CAPEX	308.8	298.2	233.8
Debt	3,175	3,084	3,835
Cash	53.006	38.972	143.8

About Dcm Shriram Industries

DCM Shriram Industries Limited manufactures and sells sugar, alcohol, fine chemicals, and rayon tyrecord products in India and internationally. It operates through Sugar, Industrial Fibres and Related Products, and Chemicals segments. The company offers various sugar products comprising plantation white crystal sugar, refined sugar, sugar cubes, sugar sachets, breakfast sugar, and packaged crystal sugar. It also provides bulk alcohol products, such as rectified spirit, extra neutral alcohol, and anhydrous alcohol to liquor and chemical manufacturers, oil companies, and pharmaceutical industry; and country liquor/IMFL. In addition, the company provides various chemical products consisting of aromatic chemicals/drug intermediates and other chemicals. Further, it offers rayon products, including rayon tyre yarns, rayon tyre cords, rayon tyre greige fabrics, and R.F.L. treated fabrics; nylon products comprising square woven chafer fabrics, tyre cord fabrics, and R.F.L. treated fabrics; and chemicals consisting of anhydrous sodium sulphate and carbon-di-sulphide. Additionally, the company is involved in power generation activities. DCM Shriram Industries Limited was founded in 1932 and is based in New Delhi, India.