Kic Metaliks EBITDA surged on 356% and EBITDA Margin increased on 3.7 pp from 0.70% to 4.4%
30-05-2016 • About Kic Metaliks (
$KAJARIR) • By InTwits
Kic Metaliks reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 4.4% in FY2016, 0.7% in FY2015, 0.9% in FY2014, 5.1% in FY2013, 3.2% in FY2012
- The company has potentially unprofitable business model: ROIC is 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 26.7%. Revenue decline was accelerating on average at -16.6 pp per annum in the last 5 years. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.7 pp from 0.70% to 4.4% in FY2016.
Net Income margin showed almost no change in FY2016.
Return on investment
The company operates at low ROIC (3.2%) and ROE (0.8%). ROIC increased on 6.8 pp from -3.6% to 3.2% in FY2016. ROE decreased slightly on 1.2 pp from 2.0% to 0.84% in FY2016.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA dropped on 17.3x from 19.8x to 2.5x in FY2016. Debt decreased on 9.3% while cash surged on 443%.
Kic Metaliks has no short term refinancing risk: cash is higher than short term debt (120.9%).
Valuation and dividends
Kic Metaliks's trades at EV/EBITDA 10.9x and P/E 153.8x while industy averages are 17.8x and 21.9x.
Financial and operational results
Kic Metaliks ($KAJARIR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,425 | 4,808 | 4,744 | 4,260 | 3,123 | -26.7% |
| EBITDA | 108 | 246 | 40 | 30 | 136 | 356.1% |
| Net Income | 33 | 22 | -43 | 18 | 8 | -57.5% |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 58 | 45 | 243 | 443.1% |
| Short Term Debt | 453 | 315 | 179 | 162 | 201 | 24.3% |
| Long Term Debt | 544 | 433 | 616 | 475 | 376 | -20.8% |
Cash flow
|
|---|
| Capex | 201 | 57 | | | | |
Ratios
|
|---|
| Revenue growth | 31.0% | 40.4% | -1.3% | -10.2% | -26.7% | |
| EBITDA growth | -58.2% | 126.3% | -83.5% | -25.9% | 356.1% | |
|
|---|
| EBITDA Margin | 3.2% | 5.1% | 0.9% | 0.7% | 4.4% | 3.7% |
| Net Income Margin | 1.0% | 0.5% | -0.9% | 0.4% | 0.2% | -0.2% |
| CAPEX, % of revenue | 5.9% | 1.2% | | | | |
|
|---|
| ROIC | 3.2% | 8.4% | -3.2% | -3.6% | 3.2% | 6.8% |
| ROE | 7.1% | 4.7% | -6.4% | 2.0% | 0.8% | -1.2% |
| Net Debt/EBITDA | 9.2x | 3.0x | 18.2x | 19.8x | 2.5x | -17.3x |
Peers in Iron & Steel/Interm.Products
Below we provide Kic Metaliks benchmarking against other companies in Iron & Steel/Interm.Products 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 |
|---|
| India Steel Works ($ISWL) | - | 20.5% | -15.4% | -16.3% | 13.8% |
| Bhushan Steel ($BHUSANSTL) | - | 3.2% | -5.9% | 10.0% | 10.9% |
| Maithan Alloys ($MAITHANALL) | - | 59.1% | 1.1% | 15.0% | 4.0% |
| Pennar Industries ($PENIND) | - | -8.5% | 0.5% | 12.7% | 3.4% |
| Visa Steel ($VISASTEEL) | - | -24.1% | 42.0% | -12.0% | 1.8% |
| |
|---|
| Median (29 companies) | 23.1% | 5.5% | 3.7% | -0.4% | -13.1% |
|---|
| Kic Metaliks ($KAJARIR) | - | 40.4% | -1.3% | -10.2% | -26.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ramsarup Industries ($RAMSARUP) | -5.1% | -51.9% | -17.8% | - | 82.3% |
| Bhushan Steel ($BHUSANSTL) | 31.2% | 32.3% | 28.1% | 20.4% | 17.7% |
| Jindal Steel & Power ($JINDALSTEL) | 37.5% | 30.5% | 28.1% | 29.8% | 17.2% |
| Tata Metaliks ($TATAMETALI) | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% |
| Jai Corp ($JAICORPLTD) | 14.1% | 16.3% | 16.0% | 12.7% | 15.8% |
| |
|---|
| Median (27 companies) | 9.4% | 9.2% | 7.4% | 7.3% | 9.2% |
|---|
| Kic Metaliks ($KAJARIR) | 3.2% | 5.1% | 0.9% | 0.7% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 34.2% | 47.6% | 69.6% | 26.4% | 21.8% |
| Steel Authority Of India ($SAIL) | 20.9% | 20.7% | 19.3% | 16.9% | 17.3% |
| Jsw Steel ($JSWSTEEL) | 11.9% | 14.7% | 11.3% | 12.7% | 12.4% |
| Pennar Industries ($PENIND) | 4.8% | 1.8% | 4.5% | 2.4% | 12.3% |
| Sarda Energy & Minerals ($SARDAEN) | 48.9% | 24.1% | 6.1% | 5.5% | 11.1% |
| |
|---|
| Median (17 companies) | 10.4% | 11.7% | 8.3% | 5.3% | 6.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Metaliks ($TATAMETALI) | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% |
| Maithan Alloys ($MAITHANALL) | 16.3% | 15.1% | 5.5% | 15.3% | 19.0% |
| Pennar Industries ($PENIND) | 26.8% | 18.4% | 12.3% | 15.7% | 16.6% |
| Kirloskar Ferrous Industries ($KIRLFER) | 19.1% | 16.8% | 12.4% | 14.7% | 15.9% |
| Sunflag Iron & Steel Co ($SUNFLAG) | 7.2% | 5.6% | 8.3% | 11.2% | 13.4% |
| |
|---|
| Median (34 companies) | 7.2% | 5.4% | 6.0% | 5.0% | 3.4% |
|---|
| Kic Metaliks ($KAJARIR) | 3.2% | 8.4% | -3.2% | -3.6% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Visa Steel ($VISASTEEL) | 20.1x | - | 24.4x | 187.1x | - |
| Ismt ($ISMTLTD) | 5.3x | 9.8x | 19.9x | 48.3x | 0.0x |
| Ocl Iron And Steel ($OISL) | 164.7x | 1,935.8x | 41.6x | 19.4x | - |
| Bhushan Steel ($BHUSANSTL) | 6.3x | 8.6x | 12.9x | 17.7x | 20.7x |
| Prakash Industries ($PRAKASH) | 2.5x | 2.8x | 2.5x | 11.9x | 3.4x |
| |
|---|
| Median (28 companies) | 4.6x | 4.4x | 3.4x | 1.7x | 0.9x |
|---|
| Kic Metaliks ($KAJARIR) | 9.2x | 3.0x | 18.2x | 19.8x | 2.5x |
