S.A.L.Steel EBITDA dropped on 11.0% and EBITDA Margin showed almost no change
31-05-2016 • About S.A.L.Steel (
$SALSTEEL) • By InTwits
S.A.L.Steel reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: EBITDA Margin is quite volatile: 7.1% in FY2016, 7.3% in FY2015, 0.8% in FY2014, 2.2% in FY2013, 11.7% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
S.A.L.Steel's Revenue decreased on 7.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.5 pp from 10.4% to 8.8% in FY2016.
Net Income margin jumped on 12.2 pp from -20.8% to -8.5% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -20.8%.
Financial and operational results
S.A.L.Steel ($SALSTEEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,276 | 3,794 | 3,294 | 3,654 | 3,376 | -7.6% |
| EBITDA | 383 | 85 | 27 | 267 | 238 | -11.0% |
| Net Income | 4 | -286 | -354 | -758 | -288 | |
Balance Sheet
|
|---|
| Cash | 4 | 49 | | | | |
| Short Term Debt | 458 | 608 | | | | |
| Long Term Debt | 1,517 | 1,007 | | | | |
Cash flow
|
|---|
| Capex | 24 | | | | | |
Ratios
|
|---|
| Revenue growth | 2.3% | 15.8% | -13.2% | 10.9% | -7.6% | |
| EBITDA growth | -7.0% | -77.9% | -67.8% | 881.6% | -11.0% | |
|
|---|
| EBITDA Margin | 11.7% | 2.2% | 0.8% | 7.3% | 7.1% | -0.3% |
| Net Income Margin | 0.1% | -7.5% | -10.8% | -20.8% | -8.5% | 12.2% |
| CAPEX, % of revenue | 0.7% | | | | | |
|
|---|
| ROIC | 5.8% | -3.6% | | | | |
| ROE | 0.3% | -23.9% | | | | |
| Net Debt/EBITDA | 5.2x | 18.5x | 0.0x | 0.0x | 0.0x |
Peers in Iron & Steel/Interm.Products
Below you can find S.A.L.Steel benchmarking vs. other companies in Iron & Steel/Interm.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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| India Steel Works ($ISWL) | - | 20.5% | -15.4% | -16.3% | 13.8% |
| Bhushan Steel ($BHUSANSTL) | - | 3.2% | -5.9% | 10.0% | 10.9% |
| Maithan Alloys ($MAITHANALL) | - | 59.1% | 1.1% | 15.0% | 4.0% |
| Pennar Industries ($PENIND) | - | -8.5% | 0.5% | 12.7% | 3.4% |
| Visa Steel ($VISASTEEL) | - | -24.1% | 42.0% | -12.0% | 1.8% |
| |
|---|
| Median (32 companies) | 11.7% | 5.5% | 3.7% | -1.6% | -14.2% |
|---|
| S.A.L.Steel ($SALSTEEL) | - | 15.8% | -13.2% | 10.9% | -7.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ramsarup Industries ($RAMSARUP) | -5.1% | -51.9% | -17.8% | - | 82.3% |
| Bhushan Steel ($BHUSANSTL) | 31.2% | 32.3% | 28.1% | 20.4% | 17.7% |
| Jindal Steel & Power ($JINDALSTEL) | 37.5% | 30.5% | 28.1% | 29.8% | 17.2% |
| Tata Metaliks ($TATAMETALI) | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% |
| Jai Corp ($JAICORPLTD) | 14.1% | 16.3% | 16.0% | 12.7% | 15.8% |
| |
|---|
| Median (28 companies) | 9.3% | 9.2% | 7.4% | 7.2% | 8.4% |
|---|
| S.A.L.Steel ($SALSTEEL) | 11.7% | 2.2% | 0.8% | 7.3% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 34.2% | 47.6% | 69.6% | 26.4% | 21.8% |
| Steel Authority Of India ($SAIL) | 20.9% | 20.7% | 19.3% | 16.9% | 17.3% |
| Jsw Steel ($JSWSTEEL) | 11.9% | 14.7% | 11.3% | 12.7% | 12.4% |
| Pennar Industries ($PENIND) | 4.8% | 1.8% | 4.5% | 2.4% | 12.3% |
| Sarda Energy & Minerals ($SARDAEN) | 48.9% | 24.1% | 6.1% | 5.5% | 11.1% |
| |
|---|
| Median (17 companies) | 10.4% | 11.7% | 8.3% | 5.3% | 6.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Metaliks ($TATAMETALI) | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% |
| Maithan Alloys ($MAITHANALL) | 16.3% | 15.1% | 5.5% | 15.3% | 19.0% |
| Pennar Industries ($PENIND) | 26.8% | 18.4% | 12.3% | 15.7% | 16.6% |
| Kirloskar Ferrous Industries ($KIRLFER) | 19.1% | 16.8% | 12.4% | 14.7% | 15.9% |
| Sunflag Iron & Steel Co ($SUNFLAG) | 7.2% | 5.6% | 8.3% | 11.2% | 13.4% |
| |
|---|
| Median (39 companies) | 7.2% | 5.5% | 5.8% | 4.6% | 3.2% |
|---|
| S.A.L.Steel ($SALSTEEL) | 5.8% | -3.6% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Visa Steel ($VISASTEEL) | 20.1x | - | 24.4x | 187.1x | - |
| Ismt ($ISMTLTD) | 5.3x | 9.8x | 19.9x | 48.3x | 0.0x |
| Kic Metaliks ($KAJARIR) | 9.2x | 3.0x | 18.2x | 19.8x | 2.5x |
| Ocl Iron And Steel ($OISL) | 164.7x | 1,935.8x | 41.6x | 19.4x | - |
| Bhushan Steel ($BHUSANSTL) | 6.3x | 8.6x | 12.9x | 17.7x | 20.7x |
| |
|---|
| Median (28 companies) | 4.6x | 4.4x | 4.2x | 2.2x | 0.9x |
|---|
| S.A.L.Steel ($SALSTEEL) | 5.2x | 18.5x | 0.0x | 0.0x | 0.0x |
