Raj Rayon Industries revenue jumped on 146%

30-05-2016 • About Raj Rayon Industries ($RAJRAYON) • By InTwits

Raj Rayon Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: EBITDA Margin is declining: in FY2016 vs. in FY2015 vs. 8.4% 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 jumped on 146%. During FY2012-FY2016 Revenue growth bottomed in FY2015 at -61.0%.

Net Income margin dropped on 22.7 pp from -40.8% to -63.6% in FY2016. Net Income margin declined at -17.0 pp per annum in FY2012-FY2016.

Financial and operational results

Raj Rayon Industries ($RAJRAYON) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	6,828	7,086	4,701	1,833	4,510	146.1%
EBITDA	577	612	-499
Net Income	38	37	-878	-749	-2,867
Balance Sheet
Cash	132	70
Short Term Debt	866	1,170
Long Term Debt	1,305	2,098
Cash flow
Capex	592
Ratios
Revenue growth	58.5%	3.8%	-33.7%	-61.0%	146.1%
EBITDA growth	24.2%	6.0%	-181.6%
EBITDA Margin	8.4%	8.6%	-10.6%
Net Income Margin	0.6%	0.5%	-18.7%	-40.8%	-63.6%	-22.7%
CAPEX, % of revenue	8.7%
ROIC	11.4%	8.7%
ROE	3.8%	2.9%
Net Debt/EBITDA	3.5x	5.2x

Peers in Textiles

Below you can find Raj Rayon Industries benchmarking vs. other companies in Textiles 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
Olympia Industries ($OLYMPTX)	-	-96.6%	74,809.1%	1,749.9%	50.5%
Prag Bosimi Synthetics ($PRAGBOS)	-	-	-	-	34.5%
Nitin Spinners ($NITINSPIN)	-	4.1%	9.5%	26.2%	24.4%
Blue Chip Tex Industries ($BLUECHIPT)	-	12.9%	29.9%	56.1%	23.7%
Vishal Fabrics ($VISHAL)	-	25.5%	11.3%	9.6%	22.3%
Median (65 companies)	3.0%	10.0%	14.6%	-0.1%	-5.1%
Raj Rayon Industries ($RAJRAYON)	-	3.8%	-33.7%	-61.0%	146.1%

Top companies by EBITDA margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Sil Investments ($SILINV)	-	-	-	93.8%	-
Swadeshi Polytex ($SWADPOL)	-	-	-	64.4%	-
Binny ($BINNY)	-	-	-	60.9%	-
Ruby Mills ($RUBYMILLS)	28.3%	25.1%	28.6%	29.3%	-
Premier Synthetics ($PREMSYN)	-	-	-	25.9%	-
Median (87 companies)	6.2%	9.5%	9.5%	7.0%	8.7%

Top companies by CAPEX/Revenue, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Nitin Spinners ($NITINSPIN)	1.9%	2.6%	8.0%	42.3%	4.7%
Maharaja Shree Umaid Mills ($MAHASHR)	18.6%	24.1%	6.8%	16.8%	-
Jindal Worldwide ($JINDWORLD)	3.0%	10.5%	20.7%	11.6%	2.2%
SRF ($SRF)	0.0%	18.7%	20.0%	11.4%	13.0%
Welspun India ($WELSPUNIND)	5.6%	7.8%	16.4%	10.9%	17.7%
Median (21 companies)	3.2%	5.6%	6.8%	6.7%	4.7%

Top companies by ROIC, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Welspun India ($WELSPUNIND)	9.3%	15.6%	8.5%	21.9%	25.2%
Jindal Worldwide ($JINDWORLD)	14.5%	15.2%	13.7%	11.0%	18.0%
Nitin Spinners ($NITINSPIN)	6.0%	19.5%	21.5%	17.5%	17.8%
Sangam (India) ($SANGAMIND)	9.8%	14.7%	12.2%	12.8%	15.0%
Sutlej Textiles & Industries ($SUTLEJTEX)	9.5%	13.6%	19.8%	14.6%	14.4%
Median (106 companies)	3.5%	9.2%	8.9%	9.5%	11.5%
Raj Rayon Industries ($RAJRAYON)	11.4%	8.7%	-	-	-

Top companies by Net Debt / EBITDA

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Jaybharat Textiles & Real Estate ($JAYTEX)	10.9x	53.6x	23.8x	-	247.8x
Bombay Rayon Fashions ($BRFL)	4.9x	4.9x	11.6x	10.0x	7.3x
Filatex India ($FILATEX)	8.0x	6.5x	0.0x	0.0x	4.9x
Raymond ($RAYMOND)	3.7x	4.6x	3.7x	4.1x	4.5x
Nahar Spinning Mills ($NAHARSPING)	70.8x	3.8x	3.2x	4.9x	4.0x
Median (60 companies)	3.8x	3.2x	0.0x	0.0x	0.0x

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