Gujarat Nre Coke reports 93.0% revenue growth in FY2016 and 82.5 pp EBITDA Margin decline from -36.3% to -119%
30-05-2016 • About Gujarat Nre Coke (
$GUJNREDVR) • By InTwits
Gujarat Nre Coke reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -118.9%
- Gujarat Nre Coke motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0% while average EBITDA Margin was -10.8% for the sames years
- Gujarat Nre Coke has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.5%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: ₹175m in FY2016, ₹0m in FY2015, ₹0m in FY2014, ₹9,546m in FY2013, ₹14,414m in FY2012
- The company has unprofitable business model: ROIC is -24.9%
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 surged on 93.0%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 82.5 pp from -36.3% to -119% in FY2016. EBITDA Margin declined at -37.7 pp per annum in the last 5 years.
Net Income margin decreased on 5.9 pp from -105% to -111% in FY2016. Net Income margin followed a declining trend at -31.9 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.4% in FY2016. The company showed big decline in CAPEX/Revenue of 44.6 pp from 47.0% in FY2013 to 2.4% in FY2016.
Return on investment
The company operates at negative ROIC (-24.9%) and ROE (-83.9%). ROIC dropped on 19.9 pp from -5.0% to -24.9% in FY2016. ROE dropped on 45.1 pp from -38.7% to -83.9% in FY2016. ROIC followed a declining trend at -7.0 pp per annum in FY2012-FY2016. ROE followed a declining trend at -20.2 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt decreased on 3.2% while cash jumped on 251%.
Gujarat Nre Coke has short term refinancing risk: cash is only 0.9% of short term debt.
Financial and operational results
Gujarat Nre Coke ($GUJNREDVR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,984 | 20,294 | 9,324 | 3,789 | 7,315 | 93.0% |
| SG&A | | | | | 46 | |
| EBITDA | 5,030 | 6,254 | -7,099 | -1,377 | -8,695 | |
| Net Income | -987 | 1,128 | -5,276 | -3,993 | -8,140 | |
Balance Sheet
|
|---|
| Cash | 888 | 277 | 174 | 28 | 98 | 251.1% |
| Short Term Debt | 14,892 | 19,775 | 7,619 | 8,820 | 11,473 | 30.1% |
| Long Term Debt | 23,920 | 26,633 | 19,639 | 21,291 | 17,682 | -17.0% |
Cash flow
|
|---|
| Capex | 14,414 | 9,546 | 0 | 0 | 175 | |
Ratios
|
|---|
| Revenue growth | -22.9% | 45.1% | -54.1% | -59.4% | 93.0% | |
| EBITDA growth | 10.7% | 24.3% | -213.5% | -80.6% | 531.5% | |
|
|---|
| EBITDA Margin | 36.0% | 30.8% | -76.1% | -36.3% | -118.9% | -82.5% |
| SG&A, % of revenue | | | | | 0.6% | |
| Net Income Margin | -7.1% | 5.6% | -56.6% | -105.4% | -111.3% | -5.9% |
| CAPEX, % of revenue | 103.1% | 47.0% | 0.0% | 0.0% | 2.4% | |
|
|---|
| ROIC | 5.7% | 4.2% | -13.3% | -5.0% | -24.9% | -19.9% |
| ROE | -5.5% | 6.4% | -35.9% | -38.7% | -83.9% | -45.1% |
| Net Debt/EBITDA | 7.5x | 7.4x | | | |
Peers in Coal
Below you can find Gujarat Nre Coke 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 Nre Coke ($GUJNRECOKE) | - | 45.1% | -54.1% | -59.4% | 93.0% |
| Coal India ($COALINDIA) | - | 9.4% | 0.7% | 4.7% | 5.0% |
| Gujarat Mineral Development Corporation ($GMDCLTD) | - | 2.3% | -22.7% | 11.6% | -16.4% |
| |
|---|
| Median (3 companies) | - | 9.4% | -22.7% | 4.7% | 5.0% |
|---|
| Gujarat Nre Coke ($GUJNREDVR) | - | 45.1% | -54.1% | -59.4% | 93.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 47.4% | 55.5% | 47.9% | 36.3% | 27.2% |
| Coal India ($COALINDIA) | 25.3% | 26.7% | 25.9% | 24.1% | 24.2% |
| Gujarat Nre Coke ($GUJNRECOKE) | 36.0% | 30.8% | -76.1% | -36.3% | -118.9% |
| |
|---|
| Median (3 companies) | 36.0% | 30.8% | 25.9% | 24.1% | 24.2% |
|---|
| Gujarat Nre Coke ($GUJNREDVR) | 36.0% | 30.8% | -76.1% | -36.3% | -118.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 20.5% | 9.9% | 15.1% | 5.3% | 29.0% |
| Coal India ($COALINDIA) | 5.5% | 3.6% | 6.0% | 6.8% | 7.2% |
| Gujarat Nre Coke ($GUJNRECOKE) | 103.1% | 47.0% | 0.0% | 0.0% | 2.4% |
| |
|---|
| Median (3 companies) | 20.5% | 9.9% | 6.0% | 5.3% | 7.2% |
|---|
| Gujarat Nre Coke ($GUJNREDVR) | 103.1% | 47.0% | 0.0% | 0.0% | 2.4% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coal India ($COALINDIA) | 28.7% | 28.9% | 30.3% | 35.3% | 41.1% |
| Gujarat Mineral Development Corporation ($GMDCLTD) | 28.9% | 30.8% | 16.3% | 10.6% | 4.6% |
| Gujarat Nre Coke ($GUJNRECOKE) | 5.7% | 4.2% | -13.3% | -5.0% | -24.9% |
| |
|---|
| Median (3 companies) | 28.7% | 28.9% | 16.3% | 10.6% | 4.6% |
|---|
| Gujarat Nre Coke ($GUJNREDVR) | 5.7% | 4.2% | -13.3% | -5.0% | -24.9% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | -0.0x | -0.0x | -0.0x | 1.3x | 2.5x |
| Coal India ($COALINDIA) | -3.6x | -3.3x | -2.9x | -2.7x | -2.0x |
| |
|---|
| Median (2 companies) | -0.0x | -0.0x | -1.5x | -0.7x | 0.2x |
|---|
