Ess Dee Aluminium Net Debt / EBITDA jumped on 28.8x from 2.9x to 31.6x in 2016 while EBITDA dropped on 88.2%
31-05-2016 • About Ess Dee Aluminium (
$ESSDEE) • By InTwits
Ess Dee Aluminium reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ess Dee Aluminium is a company in decline: FY2016 revenue growth was -46.7%, 5 years revenue CAGR was -7.7%
- EBITDA Margin is quite volatile: 4.7% in FY2016, 21.1% in FY2015, 24.7% in FY2014, 21.9% in FY2013, 23.3% in FY2012
- Ess Dee Aluminium has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.7%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: ₹219m in FY2016, ₹1,898m in FY2015, ₹2,534m in FY2014, ₹1,210m in FY2013, ₹1,273m in FY2012
- The company has unprofitable business model: ROIC is -1.9%
- It operates with high leverage: Net Debt/EBITDA is 31.6x while industry average is 11.4x
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 46.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.2 pp from 15.3% to 20.5% in FY2016.
Net Income margin dropped on 23.3 pp from 4.4% to -19.0% in FY2016. Net Income margin followed a declining trend in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.8% in FY2016. The company's CAPEX/Revenue dropped on 12.0 pp from 16.8% in FY2013 to 4.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 20.7%. Ess Dee Aluminium has spent a lot to CAPEX (103% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.9%) and ROE (-10.0%). ROIC dropped on 11.1 pp from 9.1% to -1.9% in FY2016. ROE dropped on 14.2 pp from 4.2% to -10.0% in FY2016. ROE pursued a declining trend in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 31.6x and Debt / EBITDA is 32.0x. Net Debt / EBITDA surged on 28.8x from 2.9x to 31.6x in FY2016. Debt surged on 29.5% while cash decreased slightly on 0.56%. Net Debt/EBITDA pursued a growing trend in the last 5 years.
Ess Dee Aluminium has short term refinancing risk: cash is only 1.5% of short term debt.
Financial and operational results
Ess Dee Aluminium ($ESSDEE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,591 | 7,189 | 7,194 | 8,559 | 4,562 | -46.7% |
| EBITDA | 1,535 | 1,571 | 1,780 | 1,803 | 213 | -88.2% |
| Net Income | 680 | 734 | 509 | 374 | -866 | -331.4% |
Balance Sheet
|
|---|
| Cash | 216 | 34 | 51 | 73 | 72 | -0.6% |
| Short Term Debt | 2,661 | 2,302 | 2,754 | 3,813 | 4,854 | 27.3% |
| Long Term Debt | 855 | 1,575 | 1,972 | 1,438 | 1,945 | 35.3% |
Cash flow
|
|---|
| Capex | 1,273 | 1,210 | 2,534 | 1,898 | 219 | -88.5% |
Ratios
|
|---|
| Revenue growth | -3.2% | 9.1% | 0.1% | 19.0% | -46.7% | |
| EBITDA growth | -15.2% | 2.3% | 13.3% | 1.3% | -88.2% | |
|
|---|
| EBITDA Margin | 23.3% | 21.9% | 24.7% | 21.1% | 4.7% | -16.4% |
| Net Income Margin | 10.3% | 10.2% | 7.1% | 4.4% | -19.0% | -23.3% |
| CAPEX, % of revenue | 19.3% | 16.8% | 35.2% | 22.2% | 4.8% | -17.4% |
|
|---|
| ROIC | 11.4% | 9.9% | 10.2% | 9.1% | -1.9% | -11.1% |
| ROE | 9.3% | 9.3% | 6.0% | 4.2% | -10.0% | -14.2% |
| Net Debt/EBITDA | 2.2x | 2.4x | 2.6x | 2.9x | 31.6x | 28.8x |
Peers in Household Products
Below you can find Ess Dee Aluminium benchmarking vs. other companies in Household Products 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | - | 21.0% | 19.4% | 14.2% | 9.3% |
| |
|---|
| Median (1 company) | - | 21.0% | 19.4% | 14.2% | 9.3% |
|---|
| Ess Dee Aluminium ($ESSDEE) | - | 9.1% | 0.1% | 19.0% | -46.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 9.5% | 11.9% | 11.9% | 12.8% | 13.5% |
| |
|---|
| Median (1 company) | 9.5% | 11.9% | 11.9% | 12.8% | 13.5% |
|---|
| Ess Dee Aluminium ($ESSDEE) | 23.3% | 21.9% | 24.7% | 21.1% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 2.7% | 2.5% | 1.8% | 1.1% | 1.7% |
| |
|---|
| Median (1 company) | 2.7% | 2.5% | 1.8% | 1.1% | 1.7% |
|---|
| Ess Dee Aluminium ($ESSDEE) | 19.3% | 16.8% | 35.2% | 22.2% | 4.8% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 6.5% | 8.7% | 10.3% | 12.1% | 13.2% |
| Hipolin ($HIPOLIN) | 2.2% | 3.3% | - | - | - |
| Pee Cee Cosma Sope ($PCCOSMA) | 6.7% | - | - | - | - |
| |
|---|
| Median (3 companies) | 6.5% | 6.0% | 10.3% | 12.1% | 13.2% |
|---|
| Ess Dee Aluminium ($ESSDEE) | 11.4% | 9.9% | 10.2% | 9.1% | -1.9% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 5.7x | 4.7x | 3.2x | 2.8x | 2.6x |
| Pee Cee Cosma Sope ($PCCOSMA) | 2.2x | - | - | - | 0.0x |
| |
|---|
| Median (2 companies) | 5.7x | 4.8x | 3.2x | 2.8x | 1.3x |
|---|
| Ess Dee Aluminium ($ESSDEE) | 2.2x | 2.4x | 2.6x | 2.9x | 31.6x |
