Kohinoor Foods EBITDA jumped on 3,771% and EBITDA Margin increased on 8.8 pp from 0.23% to 9.1%

30-05-2016 • About Kohinoor Foods ($KOHINOOR) • By InTwits

Kohinoor Foods reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

EBITDA Margin is quite volatile: 9.1% in FY2016, 0.2% in FY2015, 11.2% in FY2014, 10.9% in FY2013, 4.7% in FY2012
The company has business model with low profitability: ROIC is 8.1%
It operates with high leverage: Net Debt/EBITDA is 8.1x 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

Kohinoor Foods's Revenue decreased on 2.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.8 pp from 0.23% to 9.1% in FY2016.

Net Income margin increased on 5.2 pp from -7.1% to -1.8% in FY2016.

Return on investment

The company operates at low but positive ROIC (8.1%) and negative ROE (-6.6%). ROIC increased on 9.4 pp from -1.3% to 8.1% in FY2016. ROE jumped on 15.9 pp from -22.5% to -6.6% in FY2016.

Leverage (Debt)

Company's Net Debt / EBITDA is 8.1x and Debt / EBITDA is 8.2x. Net Debt / EBITDA dropped on 288.5x from 296.6x to 8.1x in FY2016. Debt increased on 5.4% while cash dropped on 19.8%.

Kohinoor Foods has short term refinancing risk: cash is only 1.4% of short term debt.

Financial and operational results

Kohinoor Foods ($KOHINOOR) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	10,764	12,211	14,186	13,347	12,997	-2.6%
EBITDA	511	1,325	1,588	30	1,177	3,770.8%
Net Income	1,887	58	231	-944	-239
Balance Sheet
Cash	51	75	81	160	129	-19.8%
Short Term Debt	8,802	9,756	9,228	8,992	9,461	5.2%
Long Term Debt	1,062	672	485	188	218	16.0%
Cash flow
Capex	169	187	141	37
Ratios
Revenue growth	5.4%	13.4%	16.2%	-5.9%	-2.6%
EBITDA growth	-60.7%	159.3%	19.9%	-98.1%	3,770.8%

EBITDA Margin	4.7%	10.9%	11.2%	0.2%	9.1%	8.8%
Net Income Margin	17.5%	0.5%	1.6%	-7.1%	-1.8%	5.2%
CAPEX, % of revenue	1.6%	1.5%	1.0%	0.3%

ROIC	3.1%	8.8%	10.3%	-1.3%	8.1%	9.4%
ROE	76.4%	1.7%	5.8%	-22.5%	-6.6%	15.9%
Net Debt/EBITDA	19.2x	7.8x	6.1x	296.6x	8.1x	-288.5x

Peers in Other Agricultural Products

Below you can find Kohinoor Foods benchmarking vs. other companies in Other Agricultural Products 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
Modi Naturals ($MODINATUR)	-	16.2%	8.3%	11.5%	15.4%
Olympic Oil Industries ($OLYOI)	-	160.6%	21.1%	-7.8%	5.2%
Avt Natural Products ($AVTNPL)	-	11.9%	5.1%	-6.9%	5.0%
Agro Tech Foods ($ATFL)	-	12.1%	-3.2%	-0.8%	3.2%
Freshtrop Fruits ($FRSHTRP)	-	43.8%	29.1%	0.0%	0.1%
Median (7 companies)	6.0%	35.2%	14.6%	0.0%	3.2%
Kohinoor Foods ($KOHINOOR)	-	13.4%	16.2%	-5.9%	-2.6%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Indrayani Biotech ($INDRANIB)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (1 company)	0.0%	0.0%	0.0%	0.0%	0.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	20.7%	19.6%	21.9%	26.7%	21.3%
Avt Natural Products ($AVTNPL)	37.6%	30.8%	25.9%	17.5%	14.4%
Freshtrop Fruits ($FRSHTRP)	9.3%	8.9%	9.8%	14.1%	13.4%
Agro Tech Foods ($ATFL)	7.6%	8.3%	9.2%	8.0%	7.3%
Vikas Granaries ($VIKASGRAN)	10.6%	14.2%	9.8%	5.0%	-
Median (9 companies)	7.6%	8.3%	9.8%	5.0%	13.4%
Kohinoor Foods ($KOHINOOR)	4.7%	10.9%	11.2%	0.2%	9.1%

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	2.9%	5.9%	2.5%	7.1%	2.9%
Agro Tech Foods ($ATFL)	4.1%	6.0%	6.3%	5.6%	5.7%
Avt Natural Products ($AVTNPL)	2.3%	5.0%	3.3%	4.0%	3.8%
Median (3 companies)	1.0%	5.0%	3.3%	5.6%	3.8%
Kohinoor Foods ($KOHINOOR)	1.6%	1.5%	1.0%	0.3%	-

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	27.5%	41.1%	46.8%	45.9%	19.3%
Avt Natural Products ($AVTNPL)	58.2%	41.5%	32.8%	19.0%	15.1%
Agro Tech Foods ($ATFL)	24.0%	25.3%	21.2%	13.9%	10.2%
Indrayani Biotech ($INDRANIB)	0.0%	0.0%	0.0%	0.0%	0.0%
Flex Foods ($FLEXFO)	12.6%	8.9%	-	-	-
Median (11 companies)	9.2%	9.3%	27.0%	16.5%	12.6%
Kohinoor Foods ($KOHINOOR)	3.1%	8.8%	10.3%	-1.3%	8.1%

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Agro Tech Foods ($ATFL)	-0.8x	-0.2x	0.1x	0.3x	1.6x
Unique Organics ($UNIQUEO)	-	0.0x	0.0x	0.0x	-
Freshtrop Fruits ($FRSHTRP)	3.3x	2.5x	0.0x	0.0x	0.0x
Modi Naturals ($MODINATUR)	3.9x	2.2x	-	0.0x	-
Vikas Granaries ($VIKASGRAN)	9.1x	4.2x	0.0x	0.0x	-
Median (9 companies)	2.1x	1.5x	0.0x	0.0x	0.0x
Kohinoor Foods ($KOHINOOR)	19.2x	7.8x	6.1x	296.6x	8.1x

Kohinoor Foods stock price chart

Kohinoor Foods financials

mln.	FY2010	FY2011	FY2012

Revenue	15,684	10,215	10,764
EBITDA	1,067	1,300	511.1
Net income	-70.231	-89.776	1,887
CAPEX	171.2	374.3	168.9
Debt	7,532	10,168	9,863
Cash	172.9	107.0	50.620

About Kohinoor Foods

Kohinoor Foods Limited is engaged in manufacturing, trading, and marketing food products under the Kohinoor brand primarily in India. It offers basmati rice; long/medium/short grain non-basmati rice; packaged food products, including ready to eat food, ready to cook products, frozen ready to eat food, dairy products, namkeen savories, sweets, biscuits and cookies, pickles, dry fruits, and rice brain oil products; wheat flour, simmer sauces, cooking pastes, spices, and seasonings; pulses and lentils; and processed food products. The company also exports its products to approximately 60 countries, including the United States; the United Kingdom and other European countries; Canada; Australia; New Zealand; the Middle East; and Singapore, Japan, Mauritius, and South East Asian countries. It was formerly known as Satnam Overseas Limited and changed its name to Kohinoor Foods Limited in 1989. The company was founded in 1976 and is based in Faridabad, India.