Nitco revenue started to decline in FY2016: decreased 6.0% vs. 7.7% growth a year earliner

30-05-2016 • About Nitco ($NITCO) • By InTwits

Nitco reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 0.7x.

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Nitco's Revenue decreased on 6.0%.

Net Income margin increased on 6.5 pp from -14.2% to -7.7% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2013 at -30.7% and was growing since that time.

Financial and operational results

Nitco ($NITCO) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	8,419	7,734	7,743	8,342	7,844	-6.0%
EBITDA	855	-363
Net Income	-569	-2,374	-2,111	-1,182	-602
Balance Sheet
Cash	582	381
Short Term Debt	4,202	648
Long Term Debt	3,107	11,567
Cash flow
Capex	1,398	1,196
Ratios
Revenue growth	31.0%	-8.1%	0.1%	7.7%	-6.0%
EBITDA growth	9.7%	-142.5%

EBITDA Margin	10.2%	-4.7%
Net Income Margin	-6.8%	-30.7%	-27.3%	-14.2%	-7.7%	6.5%
CAPEX, % of revenue	16.6%	15.5%

ROIC	4.4%	-5.7%
ROE	-11.2%	-63.3%
Net Debt/EBITDA	7.9x

Peers in Furniture-Furnishing-Paints

Below you can find Nitco benchmarking vs. other companies in Furniture-Furnishing-Paints 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
Kajaria Ceramics ($KAJARIACER)	-	22.8%	13.9%	19.1%	10.6%
Asian Paints ($ASIANPAINT)	-	13.3%	15.7%	11.3%	9.5%
Shalimar Paints ($SHALPAINTS)	-	2.5%	-3.2%	-10.3%	-7.0%
Murudeshwar Ceramics ($MURUDCERA)	-	-19.5%	1.3%	-5.5%	-16.7%
Hanung Toys & Textiles ($HANUNG)	-	27.6%	-73.8%	-71.2%	-30.7%
Median (5 companies)	-	13.3%	1.3%	-5.5%	-7.0%
Nitco ($NITCO)	-	-8.1%	0.1%	7.7%	-6.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Murudeshwar Ceramics ($MURUDCERA)	23.6%	21.8%	21.6%	23.5%	24.9%
Kajaria Ceramics ($KAJARIACER)	15.8%	15.3%	15.6%	16.3%	19.4%
Asian Paints ($ASIANPAINT)	16.0%	16.0%	16.0%	16.0%	18.3%
Neycer India ($NEYCERI)	-	-	-	9.3%	-
Bil Continental ($BILCONTI)	-	-	-	2.9%	-
Median (7 companies)	16.0%	16.0%	15.6%	9.3%	18.9%

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Kajaria Ceramics ($KAJARIACER)	5.7%	9.6%	8.5%	12.3%	11.3%
Asian Paints ($ASIANPAINT)	5.7%	5.9%	2.0%	3.2%	5.4%
Shalimar Paints ($SHALPAINTS)	0.7%	2.1%	2.8%	6.5%	2.1%
Median (3 companies)	5.7%	5.8%	2.8%	6.5%	5.4%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Asian Paints ($ASIANPAINT)	47.1%	43.0%	39.8%	37.1%	40.7%
Kajaria Ceramics ($KAJARIACER)	27.9%	28.6%	28.8%	29.8%	31.3%
Shalimar Paints ($SHALPAINTS)	25.9%	22.2%	6.2%	2.4%	13.9%
Bil Continental ($BILCONTI)	-	4.4%	-	-	-
Neycer India ($NEYCERI)	-	-6.5%	-	-	-
Median (9 companies)	20.8%	9.3%	17.5%	29.8%	31.3%
Nitco ($NITCO)	4.4%	-5.7%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Shalimar Paints ($SHALPAINTS)	1.5x	1.9x	7.3x	13.7x	3.8x
Kajaria Ceramics ($KAJARIACER)	1.3x	1.3x	0.8x	0.7x	0.6x
Neycer India ($NEYCERI)	11.8x	107.4x	-	0.0x	0.0x
Bil Continental ($BILCONTI)	7.9x	7.0x	0.0x	0.0x	0.0x
Murudeshwar Ceramics ($MURUDCERA)	3.2x	4.1x	0.0x	0.0x	0.0x
Median (6 companies)	3.8x	4.1x	0.0x	0.0x	0.0x

Nitco stock price chart

Nitco financials

mln.	FY2010	FY2011	FY2012

Revenue	9,691	6,427	8,419
EBITDA	275.2	779.2	854.9
Net income	-87.998	247.8	-568.526
CAPEX	1,106	1,842	1,398
Debt	4,555	6,048	7,309
Cash	121.3	99.656	582.2

About Nitco

Nitco Limited, together with its subsidiaries, manufactures and sells various tile products in India and internationally. The company offers floor tiles, including ceramic, vitrified, ultra/double charged, gres porcelain, and HD digital tiles; and wall tiles, such as HD digital tiles; and natural and engineered marble products. It also offers mosaico products consisting of signature, magnum opus, d?cor, solitaire, crest, and frame collection products, as well as step risers and skirtings. In addition, the company is involved in real estate development activities. Nitco Limited markets and sells its products through approximately 5,000 retail outlets and 1,100 direct dealers, as well as through 13 showrooms and 101 franchise showrooms. Further, the company exports its products to Bahrain, Oman, Qatar, Taiwan, Saudi Arabia, Europe, Africa, and other countries. Nitco Limited was founded in 1953 and is based in Mumbai, India.