Gokaldas Exports reports 132% EBITDA growth in 2016 and 2.8 pp EBITDA Margin growth from 2.3% to 5.0%
30-05-2016 • About Gokaldas Exports (
$GOKEX) • By InTwits
Gokaldas Exports reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.0% in FY2016, 2.3% in FY2015, 6.7% in FY2014, -3.5% in FY2013, -4.3% in FY2012
- Gokaldas Exports has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is 6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gokaldas Exports's Revenue increased on 4.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from 8.2% to 17.1% in FY2016.
Net Income margin increased on 2.2 pp from 3.2% to 5.4% in FY2016. Net Income margin stuck to a growing trend at 5.4 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Gokaldas Exports had CAPEX/Revenue of 0.62%. The company's CAPEX/Revenue decreased slightly on 0.51 pp from 1.1% in FY2013 to 0.62% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.49%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.27% and was growing since that time.
Return on investment
The company operates at good ROE (32.7%) while ROIC is low (6.9%). ROIC increased on 8.8 pp from -1.8% to 6.9% in FY2016. ROE increased on 8.2 pp from 24.6% to 32.7% in FY2016. ROE grew at 24.1 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA dropped on 8.6x from 10.4x to 1.8x in FY2016. Debt increased slightly on 0.70% while cash surged on 301%.
Gokaldas Exports has short term refinancing risk: cash is only 67.5% of short term debt.
Financial and operational results
Gokaldas Exports ($GOKEX) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,060 | 9,810 | 11,312 | 10,902 | 11,429 | 4.8% |
| EBITDA | -392 | -346 | 756 | 248 | 576 | 132.3% |
| Net Income | -1,324 | -1,094 | -67 | 347 | 613 | 76.8% |
Balance Sheet
|
|---|
| Cash | 178 | 154 | 379 | 527 | 2,112 | 301.0% |
| Short Term Debt | 2,533 | 3,169 | 2,467 | 2,841 | 3,130 | 10.2% |
| Long Term Debt | 53 | 0 | 642 | 267 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 114 | 111 | 30 | 64 | 71 | 10.0% |
Ratios
|
|---|
| Revenue growth | -20.9% | 8.3% | 15.3% | -3.6% | 4.8% | |
| EBITDA growth | 37.4% | -11.8% | -318.7% | -67.2% | 132.3% | |
|
|---|
| EBITDA Margin | -4.3% | -3.5% | 6.7% | 2.3% | 5.0% | 2.8% |
| Net Income Margin | -14.6% | -11.2% | -0.6% | 3.2% | 5.4% | 2.2% |
| CAPEX, % of revenue | 1.3% | 1.1% | 0.3% | 0.6% | 0.6% | 0.0% |
|
|---|
| ROIC | -13.0% | -14.8% | 10.9% | -1.8% | 6.9% | 8.8% |
| ROE | -44.5% | -62.3% | -5.4% | 24.6% | 32.7% | 8.2% |
| Net Debt/EBITDA | | | 3.6x | 10.4x | 1.8x | -8.6x |
Peers in Other Apparels & Accessories
Below we provide Gokaldas Exports benchmarking against other companies in Other Apparels & Accessories 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 |
|---|
| Goldiam International ($GOLDIAM) | - | 8.3% | 18.1% | -62.1% | 177.5% |
| Pearl Global Industries ($PGIL) | - | 36.5% | 23.0% | -78.2% | 36.1% |
| Timex Group India ($TIMEX) | - | -33.8% | 1.8% | 15.2% | 21.3% |
| Page Industries ($PAGEIND) | - | 26.3% | 37.5% | 30.0% | 15.5% |
| Pc Jeweller ($PCJEWELLER) | - | 32.1% | 32.5% | 19.5% | 15.2% |
| |
|---|
| Median (20 companies) | 9.4% | 20.9% | 15.7% | 3.8% | 4.4% |
|---|
| Gokaldas Exports ($GOKEX) | - | 8.3% | 15.3% | -3.6% | 4.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ceenik Exports (India) ($CEENIK) | - | - | - | 27.2% | - |
| Arrow Textiles ($ARROWTEX) | - | - | - | 25.2% | - |
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (33 companies) | 7.6% | 6.1% | 5.4% | 5.2% | 3.9% |
|---|
| Gokaldas Exports ($GOKEX) | -4.3% | -3.5% | 6.7% | 2.3% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | 7.0% |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | 1.7% |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | 1.5% |
| Timex Group India ($TIMEX) | 1.5% | 2.1% | 1.1% | 0.6% | 1.3% |
| Tribhovandas Bhimji Zaveri ($TBZ) | 0.5% | 2.8% | 1.0% | 0.7% | 0.6% |
| |
|---|
| Median (10 companies) | 1.6% | 1.3% | 1.1% | 0.7% | 0.5% |
|---|
| Gokaldas Exports ($GOKEX) | 1.3% | 1.1% | 0.3% | 0.6% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | 30.2% |
| Pc Jeweller ($PCJEWELLER) | - | 34.1% | 28.0% | 25.5% | 23.4% |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | - |
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
| |
|---|
| Median (42 companies) | 10.1% | 7.2% | 11.0% | 8.2% | 9.6% |
|---|
| Gokaldas Exports ($GOKEX) | -13.0% | -14.8% | 10.9% | -1.8% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Zodiac Clothing Co ($ZODIACLOTH) | 1.2x | 1.4x | 0.6x | 1.8x | 12.6x |
| Kanani Industries ($KANANIIND) | 11.3x | 7.9x | 6.0x | 8.5x | 6.9x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| Bhartiya International ($BIL) | 2.3x | 3.2x | 3.5x | 3.1x | 3.4x |
| |
|---|
| Median (21 companies) | 2.3x | 2.7x | 0.3x | 0.4x | 0.9x |
|---|
| Gokaldas Exports ($GOKEX) | - | - | 3.6x | 10.4x | 1.8x |
