Monsanto India EBITDA decreased on 6.8% and Revenue decreased on 2.7%
30-05-2016 • About Monsanto India (
$MONSANTO) • By InTwits
Monsanto India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 20.0% in FY2016, 20.9% in FY2015, 7.3% in FY2014, 16.4% in FY2013, 15.1% in FY2012
- Monsanto India has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: ₹31m in FY2016, ₹115m in FY2015, ₹74m in FY2014, ₹117m in FY2013, ₹113m in FY2012
- The company has highly profitable business model: ROIC is 25.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 2.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.90 pp from 20.9% to 20.0% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.2% in FY2016. The company showed small growth in CAPEX/Revenue of 1.2 pp from 2.0% in FY2013 to 3.2% in FY2016. It's average CAPEX/Revenue for the last three years was 2.3%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 1.7%.
Return on investment
The company operates at high and attractive ROIC (25.0%) and ROE (25.7%). ROIC decreased on 4.2 pp from 29.2% to 25.0% in FY2016. ROE decreased on 3.2 pp from 28.9% to 25.7% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 3.4%.
Valuation and dividends
Monsanto India's trades at EV/EBITDA 34.2x and P/E 36.6x while industy averages are 17.8x and 21.9x. Monsanto India's EV/(EBITDA-CAPEX) is 40.6x with the industry average at 22.8x.
Financial and operational results
Monsanto India ($MONSANTO) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,738 | 4,365 | 5,831 | 5,564 | 5,416 | -2.7% |
| EBITDA | 564 | 716 | 423 | 1,163 | 1,083 | -6.8% |
| Net Income | 502 | 673 | 199 | 1,063 | 1,013 | -4.8% |
Balance Sheet
|
|---|
| Cash | 38 | 27 | 75 | 56 | 54 | -3.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 123 | 86 | 114 | 94 | 171 | 82.7% |
Ratios
|
|---|
| Revenue growth | 2.9% | 16.8% | 33.6% | -4.6% | -2.7% | |
| EBITDA growth | -15.1% | 26.9% | -40.9% | 174.8% | -6.8% | |
|
|---|
| EBITDA Margin | 15.1% | 16.4% | 7.3% | 20.9% | 20.0% | -0.9% |
| Net Income Margin | 13.4% | 15.4% | 3.4% | 19.1% | 18.7% | -0.4% |
| CAPEX, % of revenue | 3.3% | 2.0% | 1.9% | 1.7% | 3.2% | 1.5% |
|
|---|
| ROIC | 12.4% | 15.3% | 7.8% | 29.2% | 25.0% | -4.2% |
| ROE | 13.2% | 17.0% | 5.2% | 28.9% | 25.7% | -3.2% |
| Net Debt/EBITDA | -0.1x | -0.0x | -0.2x | -0.0x | -0.0x | -0.0x |
Peers in Agrochemicals
Below you can find Monsanto 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 ($PIIND) | - | 31.0% | 38.9% | 21.6% | 8.1% |
| Insecticides (India) ($INSECTICID) | - | 18.2% | 40.1% | 11.6% | 2.5% |
| 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 ($RALLIS) | - | 14.4% | 19.8% | 4.3% | -10.6% |
| |
|---|
| Median (6 companies) | 15.2% | 21.7% | 18.4% | 15.8% | -4.9% |
|---|
| Monsanto India ($MONSANTO) | - | 16.8% | 33.6% | -4.6% | -2.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Excel Industries ($EXCELINDUS) | 8.5% | 10.9% | 9.8% | 15.0% | 14.0% |
| |
|---|
| Median (8 companies) | 11.0% | 11.3% | 12.9% | 15.2% | 14.5% |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | 20.0% |
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% |
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | 2.0% |
| |
|---|
| Median (6 companies) | 9.1% | 8.1% | 4.0% | 5.1% | 5.3% |
|---|
| Monsanto India ($MONSANTO) | 3.3% | 2.0% | 1.9% | 1.7% | 3.2% |
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% |
| 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% |
| Insecticides (India) ($INSECTICID) | 19.2% | 15.6% | 15.7% | 16.8% | 12.1% |
| |
|---|
| Median (8 companies) | 6.4% | 9.7% | 15.7% | 20.3% | 17.5% |
|---|
| Monsanto India ($MONSANTO) | 12.4% | 15.3% | 7.8% | 29.2% | 25.0% |
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 |
| Insecticides (India) ($INSECTICID) | 2.7x | 3.0x | 2.7x | 2.8x | 1.9x |
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | 1.4x |
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
| |
|---|
| Median (8 companies) | 3.4x | 3.0x | 0.3x | 0.8x | 0.8x |
|---|
| Monsanto India ($MONSANTO) | -0.1x | -0.0x | -0.2x | -0.0x | -0.0x |
