Surana Industries revenue growth decelerated from 4.5% in FY2015 to 0.80% in FY2016

02-06-2016 • About Surana Industries ($SURANAIND) • By InTwits

Surana 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. -24.1% in FY2015 vs. 13.0% 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

Surana Industries's Revenue increased slightly on 0.80%.

Net Income margin dropped on 118 pp from -67.5% to -186% in FY2016. Net Income margin followed a declining trend at -44.4 pp per annum in the last 5 years.

Financial and operational results

Surana Industries ($SURANAIND) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	13,560	14,936	6,225	6,502	6,554	0.8%
EBITDA	1,760	2,168	-457	-1,564
Net Income	310	36	-1,717	-4,388	-12,176
Balance Sheet
Cash	453	192	148	281
Short Term Debt	3,939	4,483	4,423	4,838
Long Term Debt	14,433	18,118	23,199	24,756
Cash flow
Capex	5,600	8,185	1,340	185
Ratios
Revenue growth	11.7%	10.2%	-58.3%	4.5%	0.8%
EBITDA growth	-9.0%	23.2%	-121.1%	242.3%

EBITDA Margin	13.0%	14.5%	-7.3%	-24.1%
Net Income Margin	2.3%	0.2%	-27.6%	-67.5%	-185.8%	-118.3%
CAPEX, % of revenue	41.3%	54.8%	21.5%	2.8%

ROIC	5.8%	5.3%	-2.7%	-6.5%
ROE	5.0%	0.4%	-18.4%	-70.4%
Net Debt/EBITDA	10.2x	10.3x

Peers in Iron & Steel/Interm.Products

Below you can find Surana Industries 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 ($VISASTEEL)	-	-24.1%	42.0%	-12.0%	1.8%
Median (33 companies)	-	5.5%	3.7%	-1.6%	-13.1%
Surana Industries ($SURANAIND)	-	10.2%	-58.3%	4.5%	0.8%

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 (29 companies)	9.3%	9.0%	7.4%	7.3%	7.6%

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)	9.7%	11.6%	7.7%	5.4%	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 ($SUNFLAG)	7.2%	5.6%	8.3%	11.2%	13.4%
Median (40 companies)	7.2%	5.5%	6.0%	5.0%	3.2%
Surana Industries ($SURANAIND)	5.8%	5.3%	-2.7%	-6.5%	-

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 (29 companies)	4.6x	4.4x	3.8x	1.8x	0.9x

Surana Industries stock price chart

Surana Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	7,851	12,139	13,560
EBITDA	0.000	1,934	1,760
Net income	0.000	524.8	310.5
CAPEX	0.000	0.000	5,600
Debt	0.000	15,072	18,372
Cash	0.000	745.9	453.3

About Surana Industries

Surana Industries Limited, together with its subsidiaries, manufactures and sells iron and steel products in India. Its product portfolio includes raw materials, such as sponge iron lumps and fines; semis-billets and blooms, including mild steel, and carbon and alloy steel; and long products, such as TMT re-bars, MS wire rod coils, carbon grade wire rod coils, plain rounds, and round corner squares. The company also offers smaller structural sections that include channels, angles, flats, and squares; by products, such as char, dolochar, fly ash, bag filter duct, and mill scales; and renewable energy products, including carbon credits. Surana Industries Limited was founded in 1991 and is headquartered in Chennai, India.