Dcm reports 8.6% revenue decline in FY2016 and 1.00 pp EBITDA Margin growth from 6.0% to 7.0%

31-05-2016 • About Dcm ($DCM) • By InTwits

Dcm reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 7.0% in FY2016, 6.0% in FY2015, 9.1% in FY2014, 8.5% in FY2013, 2.0% 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 decreased on 8.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.00 pp from 6.0% to 7.0% in FY2016.

Net Income margin increased slightly on 0.83 pp from -0.47% to 0.37% in FY2016.

Financial and operational results

Dcm ($DCM) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	7,524	7,710	8,974	9,293	8,493	-8.6%
EBITDA	152	652	813	554	591	6.7%
Net Income	78	178	377	-43	31
Balance Sheet
Cash	26	128	126	173
Short Term Debt	1,665	1,841	2,039	1,764
Long Term Debt	412	577	1,117	1,438
Cash flow
Capex	203	699	1,037
Ratios
Revenue growth	9.8%	2.5%	16.4%	3.6%	-8.6%
EBITDA growth	-84.6%	329.5%	24.8%	-31.9%	6.7%

EBITDA Margin	2.0%	8.5%	9.1%	6.0%	7.0%	1.0%
Net Income Margin	1.0%	2.3%	4.2%	-0.5%	0.4%	0.8%
CAPEX, % of revenue	2.7%	9.1%	11.6%

ROIC	-0.8%	10.3%	11.3%	2.6%
ROE	4.1%	8.9%	17.6%	-2.0%
Net Debt/EBITDA	13.5x	3.5x	3.7x	5.5x	0.0x

Peers in Textiles

Below you can find Dcm 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
Raj Rayon Industries ($RAJRAYON)	-	3.8%	-33.7%	-61.0%	146.1%
Rajvir Industries ($RAJVIR)	-	-5.7%	-30.9%	-49.2%	71.3%
Olympia Industries ($OLYMPTX)	-	-96.6%	74,809.1%	1,749.9%	50.5%
Prag Bosimi Synthetics ($PRAGBOS)	-	-	-	-	34.5%
Nitin Spinners ($NITINSPIN)	-	4.1%	9.5%	26.2%	24.4%
Median (70 companies)	-1.0%	10.0%	14.4%	-0.5%	-3.5%
Dcm ($DCM)	-	2.5%	16.4%	3.6%	-8.6%

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%	35.4%
Premier Synthetics ($PREMSYN)	-	-	-	25.9%	-
Median (86 companies)	6.5%	9.5%	9.5%	7.2%	8.8%
Dcm ($DCM)	2.0%	8.5%	9.1%	6.0%	7.0%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Welspun India ($WELSPUNIND)	5.6%	7.8%	16.4%	10.9%	17.7%
SRF ($SRF)	0.0%	18.7%	20.0%	11.4%	13.0%
Grasim Industries ($GRASIM)	17.7%	21.7%	11.6%	10.2%	7.7%
Arvind ($ARVIND)	9.4%	7.0%	6.5%	7.2%	7.3%
Sutlej Textiles & Industries ($SUTLEJTEX)	3.4%	1.8%	5.6%	10.7%	7.1%
Median (17 companies)	3.4%	5.3%	6.7%	6.7%	4.6%

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 ($SUTLEJTEX)	9.5%	13.6%	19.8%	14.6%	14.4%
Median (115 companies)	3.6%	8.9%	8.6%	9.6%	10.2%
Dcm ($DCM)	-0.8%	10.3%	11.3%	2.6%	-

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 ($FILATEX)	8.0x	6.5x	0.0x	0.0x	4.9x
Ruby Mills ($RUBYMILLS)	12.6x	15.3x	10.8x	8.6x	4.8x
Raymond ($RAYMOND)	3.7x	4.6x	3.7x	4.1x	4.5x
Median (65 companies)	3.8x	3.2x	0.0x	0.0x	0.0x
Dcm ($DCM)	13.5x	3.5x	3.7x	5.5x	0.0x

Dcm stock price chart

Dcm financials

mln.	FY2010	FY2011	FY2012

Revenue	10,981	6,856	7,524
EBITDA	248.5	984.4	151.8
Net income	656.1	375.5	77.939
CAPEX	89.735	208.6	203.4
Debt	1,869	3,116	2,077
Cash	97.720	42.014	26.490

About Dcm

DCM Limited, together with its subsidiaries, engages in the cotton yarn, information technology (IT), real estate, and grey iron castings businesses in India and internationally. The Textiles segment manufactures and sells cotton yarn, as well as exports it cotton yarn primarily to Portugal, Egypt, South Korea, Brazil, Hong Kong, China, Bangladesh, Italy, the United States, and Peru. The IT Services segment provides IT Infrastructure services and software development services, such as system administration, storage management, backup recovery, and disaster management, as well as on-site staffing services. The Real Estate segment develops a real estate site located at Bara Hindu Rao/Kishan Ganj, Delhi. The Grey Iron Castings segment manufactures grey iron castings. The Other segment is involved in leasing/financing, investing, and other activities. The company was formerly known as Delhi Cloth & General Mills Co. Limited and changed its name to DCM Limited in October 1983. DCM Limited was founded in 1889 and is based in New Delhi, India.