Insecticides (India) Net Income dropped on 28.4% while Revenue increased on 2.5%
30-05-2016 • About Insecticides (India) (
$INSECTICID) • By InTwits
Insecticides (India) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Insecticides (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's in pair with industry average of 6.1%
- CAPEX is quite volatile: ₹196m in FY2016, ₹335m in FY2015, ₹335m in FY2014, ₹497m in FY2013, ₹556m in FY2012
- The company has highly profitable business model: ROIC is 12.1%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Insecticides (India)'s Revenue increased on 2.5%. During the last 5 years Revenue growth topped in FY2014 at 40.1% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 11.7% to 9.3% in FY2016.
Net Income margin decreased slightly on 1.7 pp from 5.7% to 4.0% in FY2016.
Investments (CAPEX, working capital and M&A)
Insecticides (India)'s CAPEX/Revenue was 2.0% in FY2016. The company showed decline in CAPEX/Revenue of 6.1 pp from 8.1% in FY2013 to 2.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.1%. CAPEX as a % of Revenue declined at -2.2 pp per annum in the last 5 years.
Return on investment
The company operates at good ROIC (12.1%) while ROE is low (11.2%). ROIC decreased on 4.7 pp from 16.8% to 12.1% in FY2016. ROE decreased on 9.2 pp from 20.4% to 11.2% in FY2016.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 2.8x to 1.9x in FY2016. Debt dropped on 44.1% while cash jumped on 44.8%.
Insecticides (India) has short term refinancing risk: cash is only 6.2% of short term debt.
Valuation and dividends
Insecticides (India)'s trades at EV/EBITDA 11.4x and P/E 22.4x while industy averages are 17.8x and 21.9x. Insecticides (India)'s EV/(EBITDA-CAPEX) is 14.6x with the industry average at 22.8x.
Financial and operational results
Insecticides (India) ($INSECTICID) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,218 | 6,167 | 8,641 | 9,642 | 9,881 | 2.5% |
| EBITDA | 573 | 695 | 912 | 1,130 | 917 | -18.8% |
| Net Income | 330 | 353 | 399 | 548 | 393 | -28.4% |
Balance Sheet
|
|---|
| Cash | 51 | 47 | 90 | 65 | 94 | 44.8% |
| Short Term Debt | 1,203 | 1,812 | 2,278 | 2,679 | 1,517 | -43.4% |
| Long Term Debt | 383 | 301 | 302 | 537 | 280 | -47.7% |
Cash flow
|
|---|
| Capex | 556 | 497 | 335 | 335 | 196 | -41.5% |
Ratios
|
|---|
| Revenue growth | 15.9% | 18.2% | 40.1% | 11.6% | 2.5% | |
| EBITDA growth | 28.6% | 21.4% | 31.2% | 23.8% | -18.8% | |
|
|---|
| EBITDA Margin | 11.0% | 11.3% | 10.6% | 11.7% | 9.3% | -2.4% |
| Net Income Margin | 6.3% | 5.7% | 4.6% | 5.7% | 4.0% | -1.7% |
| CAPEX, % of revenue | 10.7% | 8.1% | 3.9% | 3.5% | 2.0% | -1.5% |
|
|---|
| ROIC | 19.2% | 15.6% | 15.7% | 16.8% | 12.1% | -4.7% |
| ROE | 19.6% | 17.9% | 17.4% | 20.4% | 11.2% | -9.2% |
| Net Debt/EBITDA | 2.7x | 3.0x | 2.7x | 2.8x | 1.9x | -0.9x |
Peers in Agrochemicals
Below you can find Insecticides (India) benchmarking vs. other companies in Agrochemicals 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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | - | 31.0% | 38.9% | 21.6% | 8.1% |
| Monsanto India ($MONSANTO) | - | 16.8% | 33.6% | -4.6% | -2.7% |
| Astec Lifesciences Limited ($ASTEC) | - | 55.7% | 18.4% | 28.9% | -2.8% |
| Excel Industries ($EXCELINDUS) | - | 21.7% | 8.3% | 15.8% | -6.9% |
| Rallis India ($RALLIS) | - | 14.4% | 19.8% | 4.3% | -10.6% |
| |
|---|
| Median (6 companies) | 15.2% | 21.7% | 18.4% | 15.8% | -4.9% |
|---|
| Insecticides (India) ($INSECTICID) | - | 18.2% | 40.1% | 11.6% | 2.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | 20.0% |
| Astec Lifesciences Limited ($ASTEC) | 15.5% | 16.7% | 17.1% | 20.3% | 9.1% |
| P.I.Industries ($PIIND) | 17.0% | 15.8% | 18.4% | 19.6% | 20.8% |
| Rallis India ($RALLIS) | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% |
| Jubilant Industries ($JUBLINDS) | 1.8% | 1.6% | - | 15.3% | 20.5% |
| |
|---|
| Median (8 companies) | 15.1% | 14.7% | 12.5% | 15.4% | 17.5% |
|---|
| Insecticides (India) ($INSECTICID) | 11.0% | 11.3% | 10.6% | 11.7% | 9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 13.4% | 13.2% | 4.0% | 8.7% | 15.3% |
| Astec Lifesciences Limited ($ASTEC) | 41.7% | 14.9% | 9.2% | 7.5% | 10.0% |
| Excel Industries ($EXCELINDUS) | 7.6% | 5.7% | 8.5% | 6.8% | 5.9% |
| Rallis India ($RALLIS) | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% |
| Monsanto India ($MONSANTO) | 3.3% | 2.0% | 1.9% | 1.7% | 3.2% |
| |
|---|
| Median (6 companies) | 6.0% | 5.7% | 4.0% | 5.1% | 5.3% |
|---|
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 23.9% | 22.5% | 31.3% | 34.0% | 31.0% |
| Jubilant Industries ($JUBLINDS) | -3.1% | -3.9% | - | - | 29.4% |
| Monsanto India ($MONSANTO) | 12.4% | 15.3% | 7.8% | 29.2% | 25.0% |
| Rallis India ($RALLIS) | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% |
| Excel Industries ($EXCELINDUS) | 8.5% | 14.2% | 11.9% | 20.3% | 15.3% |
| |
|---|
| Median (8 companies) | 6.4% | 9.7% | 11.9% | 25.4% | 22.3% |
|---|
| Insecticides (India) ($INSECTICID) | 19.2% | 15.6% | 15.7% | 16.8% | 12.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Astec Lifesciences Limited ($ASTEC) | 4.1x | 2.4x | 2.3x | 1.7x | 5.3x |
| Jubilant Industries ($JUBLINDS) | 12.1x | 11.5x | - | 2.5x | 2.2x |
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | 1.4x |
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
| P.I.Industries ($PIIND) | 1.6x | 1.2x | 0.3x | 0.2x | 0.2x |
| |
|---|
| Median (8 companies) | 3.4x | 2.4x | 0.2x | 0.3x | 0.3x |
|---|
| Insecticides (India) ($INSECTICID) | 2.7x | 3.0x | 2.7x | 2.8x | 1.9x |
