Jayshree Chemicals Net Income surged on 168% while EBITDA Margin dropped on 24.9 pp from -0.42% to -25.3%

30-05-2016 • About Jayshree Chemicals ($JAYCH) • By InTwits

Jayshree Chemicals 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: -25.3%
• EBITDA Margin is quite volatile: -25.3% in FY2016, -0.4% in FY2015, 5.3% in FY2014, 18.2% in FY2013, 10.9% in FY2012

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 dropped on 55.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 23.5% to 24.9% in FY2016. EBITDA Margin followed a declining trend at -9.1 pp per annum in FY2012-FY2016.

Net Income margin surged on 60.6 pp from -23.9% to 36.7% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -23.9%.

Financial and operational results

Jayshree Chemicals ($JAYCH) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	1,132	1,330	330	1,196	530	-55.7%
EBITDA	124	242	17	-5	-134
Net Income	8	8	-70	-285	195
Balance Sheet
Cash	3	7
Short Term Debt	492	483
Long Term Debt	784	681
Cash flow
Capex	136	52
Ratios
Revenue growth	288.9%	17.5%	-75.2%	262.3%	-55.7%
EBITDA growth	-340.4%	95.7%	-92.8%	-128.7%	2,580.0%
EBITDA Margin	10.9%	18.2%	5.3%	-0.4%	-25.3%	-24.9%
Net Income Margin	0.7%	0.6%	-21.2%	-23.9%	36.7%	60.6%
CAPEX, % of revenue	12.0%	3.9%
ROIC	2.5%	8.4%
ROE	1.5%	1.6%
Net Debt/EBITDA	10.3x	4.8x	0.0x

Peers in Commodity Chemicals

Below we provide Jayshree Chemicals benchmarking against other companies in Commodity Chemicals 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
Andhra Petrochemicals ($ANDHRAPET)	-	-5.8%	-53.9%	-45.9%	139.3%
Iol Chemicals & Pharmaceuticals ($IOLCP)	-	2.3%	17.0%	-31.7%	49.1%
Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA)	-	-27.9%	-83.3%	408.0%	18.3%
Indo Amines ($INDOAMIN)	-	4.4%	10.7%	-2.6%	17.2%
Godrej Industries ($GODREJIND)	-	24.1%	13.7%	16.6%	16.5%
Median (32 companies)	50.0%	9.7%	11.5%	5.6%	-1.4%
Jayshree Chemicals ($JAYCH)	-	17.5%	-75.2%	262.3%	-55.7%

Top companies by EBITDA margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Riddhi Siddhi Gluco Biols ($RIDDHI)	-	-	-	104.7%	-
Mysore Petro Chemicals ($MYSORPETRO)	-	-	-	47.1%	-
Aditya Birla Chemicals (India) ($ABCIL)	26.8%	27.1%	23.6%	21.9%	-
Indo Borax & Chemicals ($INDOBORAX)	-	-	-	21.3%	-
Chemfab Alkalis ($CHEMFALKAL)	22.3%	32.9%	24.2%	19.8%	23.2%
Median (50 companies)	10.0%	8.3%	8.6%	6.6%	11.2%
Jayshree Chemicals ($JAYCH)	10.9%	18.2%	5.3%	-0.4%	-25.3%

Top companies by CAPEX/Revenue, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kanoria Chemicals & Industries ($KANORICHEM)	25.1%	6.0%	13.4%	40.3%	28.7%
Aarti Industries ($AARTIIND)	8.0%	11.2%	11.0%	10.4%	16.8%
Alkyl Amines Chemicals ($ALKYLAMINE)	5.1%	6.6%	5.9%	8.6%	7.3%
Jindal Poly Films ($JINDPOLBBPH)	6.9%	2.1%	27.5%	3.1%	7.3%
Andhra Sugars ($ANDHRSUGAR)	5.3%	4.2%	3.2%	4.0%	6.5%
Median (18 companies)	5.2%	7.2%	5.7%	3.2%	4.7%

Top companies by ROIC, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bodal Chemicals ($BODALCHEM)	-1.3%	3.3%	39.0%	38.3%	33.1%
Transpek Industry ($TRANSPEK)	-1.7%	14.2%	11.0%	17.8%	26.9%
Alkyl Amines Chemicals ($ALKYLAMINE)	16.0%	18.7%	25.0%	23.7%	24.7%
Balaji Amines ($BALAMINES)	19.3%	16.1%	15.6%	16.5%	21.2%
Thirumalai Chemicals ($TIRUMALCHM)	13.0%	23.2%	12.5%	5.3%	21.2%
Median (49 companies)	9.2%	9.8%	9.3%	8.8%	13.7%
Jayshree Chemicals ($JAYCH)	2.5%	8.4%	-	-	-

Top companies by Net Debt / EBITDA

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kanoria Chemicals & Industries ($KANORICHEM)	5.2x	9.6x	3.5x	9.4x	10.1x
Godrej Industries ($GODREJIND)	9.9x	5.7x	7.9x	10.7x	10.0x
Iol Chemicals & Pharmaceuticals ($IOLCP)	5.8x	4.5x	3.7x	35.4x	8.8x
India Glycols ($INDIAGLYCO)	4.8x	3.7x	8.5x	14.2x	6.7x
Tata Chemicals ($TATACHEM)	2.7x	2.4x	3.6x	2.3x	3.2x
Median (31 companies)	2.6x	3.0x	1.4x	1.0x	1.0x

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