Jindal Cotex revenue dropped on 48.1% while EBITDA Margin surged on 16.3 pp from -28.6% to -12.4%
10-06-2016 • About Jindal Cotex (
$JINDCOT) • By InTwits
Jindal Cotex reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Jindal Cotex is a company in decline: FY2016 revenue growth was -48.1%, 5 years revenue CAGR was -17.7%
- The company operates at negative EBITDA Margin: -12.4%
- Jindal Cotex spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 48.1%. Revenue decline was accelerating on average at -32.0 pp per annum in the last 5 years. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 16.3 pp from -28.6% to -12.4% in FY2016.
Net Income margin dropped on 11.1 pp from -70.4% to -81.5% in FY2016. Net Income margin followed a declining trend at -22.6 pp per annum in the last 5 years.
Financial and operational results
Jindal Cotex ($JINDCOT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,476 | 6,569 | 3,482 | 1,957 | 1,015 | -48.1% |
| EBITDA | -34 | 470 | | -560 | -125 | |
| Net Income | -172 | 1 | -499 | -1,377 | -827 | |
Balance Sheet
|
|---|
| Cash | 29 | 106 | | | | |
| Short Term Debt | 1,536 | 1,363 | | | | |
| Long Term Debt | 2,049 | 2,786 | | | | |
Cash flow
|
|---|
| Capex | 884 | 167 | | | | |
Ratios
|
|---|
| Revenue growth | 66.4% | 46.8% | -47.0% | -43.8% | -48.1% | |
| EBITDA growth | -110.9% | -1,490.9% | | | -77.6% | |
|
|---|
| EBITDA Margin | -0.8% | 7.2% | | -28.6% | -12.4% | 16.3% |
| Net Income Margin | -3.8% | 0.0% | -14.3% | -70.4% | -81.5% | -11.1% |
| CAPEX, % of revenue | 19.7% | 2.5% | | | | |
|
|---|
| ROIC | -2.6% | 4.4% | | | | |
| ROE | -5.9% | 0.0% | | | | |
| Net Debt/EBITDA | | 8.6x | | | |
Peers in Textiles
Below we provide Jindal Cotex 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 ($RAJRAYON) | - | 3.8% | -33.7% | -61.0% | 146.1% |
| Rajvir Industries ($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 ($NITINSPIN) | - | 4.1% | 9.5% | 26.2% | 24.4% |
| |
|---|
| Median (71 companies) | -1.1% | 9.3% | 14.6% | -0.1% | -3.6% |
|---|
| Jindal Cotex ($JINDCOT) | - | 46.8% | -47.0% | -43.8% | -48.1% |
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 ($PREMSYN) | - | - | - | 25.9% | - |
| |
|---|
| Median (86 companies) | 6.5% | 9.5% | 9.5% | 7.2% | 8.8% |
|---|
| Jindal Cotex ($JINDCOT) | -0.8% | 7.2% | - | -28.6% | -12.4% |
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 ($SUTLEJTEX) | 3.4% | 1.8% | 5.6% | 10.7% | 7.1% |
| |
|---|
| Median (17 companies) | 3.2% | 5.9% | 6.8% | 6.7% | 4.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($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 (122 companies) | 3.6% | 9.2% | 8.9% | 9.5% | 10.2% |
|---|
| Jindal Cotex ($JINDCOT) | -2.6% | 4.4% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jaybharat Textiles & Real Estate ($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 (67 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 0.0x |
|---|
