Shree Rajasthan Syntex reports 12.7% revenue decline in FY2016

30-05-2016 • About Shree Rajasthan Syntex ($SHRAJSYNQ) • By InTwits

Shree Rajasthan Syntex reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:

Shree Rajasthan Syntex is a company in decline: FY2016 revenue growth was -12.7%, 5 years revenue CAGR was -3.5%
It operates with high leverage: Net Debt/EBITDA is 9.1x while industry average is 4.6x

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 12.7%.

Net Income margin showed almost no change in FY2016. During FY2012-FY2016 Net Income margin topped in FY2014 at 0.21% and was declining since that time.

Financial and operational results

Shree Rajasthan Syntex ($SHRAJSYNQ) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,829	2,829	2,858	2,953	2,577	-12.7%
EBITDA	14	216		167
Net Income	-168	0	6	-14	-21
Balance Sheet
Cash	15
Short Term Debt	436
Long Term Debt	804
Cash flow
Capex	14
Ratios
Revenue growth	-8.0%	0.0%	1.0%	3.3%	-12.7%
EBITDA growth	-95.9%	1,437.0%

EBITDA Margin	0.5%	7.6%		5.7%
Net Income Margin	-5.9%	0.0%	0.2%	-0.5%	-0.8%	-0.3%
CAPEX, % of revenue	0.5%

ROIC	-4.7%
ROE	-38.1%
Net Debt/EBITDA	87.3x	0.0x		0.0x

Peers in Textiles

Below we provide Shree Rajasthan Syntex benchmarking against other companies in Textiles 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
Raj Rayon Industries ($RAJRAYON)	-	3.8%	-33.7%	-61.0%	146.1%
Olympia Industries ($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 ($BLUECHIPT)	-	12.9%	29.9%	56.1%	23.7%
Median (65 companies)	3.0%	10.0%	14.6%	-0.5%	-4.3%
Shree Rajasthan Syntex ($SHRAJSYNQ)	-	0.0%	1.0%	3.3%	-12.7%

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 ($PREMSYN)	-	-	-	25.9%	-
Median (86 companies)	6.5%	9.5%	9.5%	7.2%	8.7%
Shree Rajasthan Syntex ($SHRAJSYNQ)	0.5%	7.6%	-	5.7%	-

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)	3.4%	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 ($SUTLEJTEX)	9.5%	13.6%	19.8%	14.6%	14.4%
Median (106 companies)	3.6%	9.0%	8.9%	9.5%	11.5%
Shree Rajasthan Syntex ($SHRAJSYNQ)	-4.7%	-	-	-	-

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

Shree Rajasthan Syntex stock price chart

Shree Rajasthan Syntex financials

mln.	FY2010	FY2011	FY2012

Revenue	3,512	3,076	2,829
EBITDA	233.7	341.5	14.034
Net income	5.907	65.941	-168.012
CAPEX	21.178	21.543	13.648
Debt	1,678	1,560	1,240
Cash	16.318	24.286	15.246

About Shree Rajasthan Syntex

Shree Rajasthan Syntex Ltd. operates as an integrated producer of textile raw materials in India. The company offers fiber dyed and raw white products, such as polyester-viscose, acrylic, and slub/flame 100% polyester/PV blends; 100% polyester and viscose; regenerated 100% polyester; micro danier soft/supersoft yarns; and low shrinkage automotive products, as well as karded cotton yarn. It also provides polypropylene products, including bulk continuous filament, and fully drawn and partially oriented yarns, as well as generates and supplies power through a thermal generating power plant. The company exports its spun yarn primarily in Algeria, Indonesia, Germany, Egypt, South Africa, Itlay, Belgium, Portugal, Morocco, Turkey, and Chilly. Shree Rajasthan Syntex Ltd. was incorporated in 1979 and is based in Udaipur, India.