Vikas Granaries reports 60.3% revenue decline in FY2016

12-07-2016 • About Vikas Granaries ($VIKASGRAN) • By InTwits

Vikas Granaries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

Vikas Granaries is a company in decline: FY2016 revenue growth was -60.3%, 5 years revenue CAGR was -2.6%
EBITDA Margin is declining: in FY2016 vs. 5.0% in FY2015 vs. 10.6% 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

Vikas Granaries's Revenue dropped on 60.3%.

Net Income margin decreased on 7.9 pp from 0.13% to -7.8% in FY2016. Net Income margin stuck to a declining trend at -2.9 pp per annum in the last 5 years.

Financial and operational results

Vikas Granaries ($VIKASGRAN) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	1,143	2,149	1,404	2,927	1,162	-60.3%
EBITDA	122	305	138	147
Net Income	51	91	6	4	-90	-2,386.6%
Balance Sheet
Cash	345	1
Short Term Debt	346	224
Long Term Debt	1,105	1,055
Cash flow
Ratios
Revenue growth	-13.9%	88.0%	-34.7%	108.5%	-60.3%
EBITDA growth	-69.8%	150.4%	-54.8%	6.9%

EBITDA Margin	10.6%	14.2%	9.8%	5.0%
Net Income Margin	4.5%	4.2%	0.5%	0.1%	-7.8%	-7.9%

ROIC	3.8%	7.3%
ROE	6.2%	10.1%
Net Debt/EBITDA	9.1x	4.2x	0.0x	0.0x

Peers in Other Agricultural Products

Below you can find Vikas Granaries benchmarking vs. other companies in Other Agricultural 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
Modi Naturals ($MODINATUR)	-	16.2%	8.3%	11.5%	15.4%
Olympic Oil Industries ($OLYOI)	-	160.6%	21.1%	-7.8%	5.2%
Avt Natural Products ($AVTNPL)	-	11.9%	5.1%	-6.9%	5.0%
Anik Industries ($ANIKINDS)	-	-21.3%	14.6%	1.4%	4.4%
Agro Tech Foods ($ATFL)	-	12.1%	-3.2%	-0.8%	3.2%
Median (9 companies)	-	16.2%	16.2%	-0.8%	3.2%
Vikas Granaries ($VIKASGRAN)	-	88.0%	-34.7%	108.5%	-60.3%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Indrayani Biotech ($INDRANIB)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (1 company)	0.0%	0.0%	0.0%	0.0%	0.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	20.7%	19.6%	21.9%	26.7%	21.3%
Avt Natural Products ($AVTNPL)	37.6%	30.8%	25.9%	17.5%	14.4%
Freshtrop Fruits ($FRSHTRP)	9.3%	8.9%	9.8%	14.1%	13.4%
Agro Tech Foods ($ATFL)	7.6%	8.3%	9.2%	8.0%	7.3%
Anik Industries ($ANIKINDS)	3.3%	3.1%	1.3%	4.1%	3.8%
Median (9 companies)	4.7%	8.3%	9.8%	4.1%	9.1%
Vikas Granaries ($VIKASGRAN)	10.6%	14.2%	9.8%	5.0%	-

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	2.9%	5.9%	2.5%	7.1%	2.9%
Agro Tech Foods ($ATFL)	4.1%	6.0%	6.3%	5.6%	5.7%
Avt Natural Products ($AVTNPL)	2.3%	5.0%	3.3%	4.0%	3.8%
Kohinoor Foods ($KOHINOOR)	1.6%	1.5%	1.0%	0.3%	-
Median (4 companies)	1.3%	3.9%	2.9%	4.8%	3.8%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kaveri Seed Company ($KSCL)	27.5%	41.1%	46.8%	45.9%	19.3%
Avt Natural Products ($AVTNPL)	58.2%	41.5%	32.8%	19.0%	15.1%
Agro Tech Foods ($ATFL)	24.0%	25.3%	21.2%	13.9%	10.2%
Kohinoor Foods ($KOHINOOR)	3.1%	8.8%	10.3%	-1.3%	8.1%
Indrayani Biotech ($INDRANIB)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (13 companies)	9.2%	9.3%	21.2%	13.9%	10.2%
Vikas Granaries ($VIKASGRAN)	3.8%	7.3%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kohinoor Foods ($KOHINOOR)	19.2x	7.8x	6.1x	296.6x	8.1x
Agro Tech Foods ($ATFL)	-0.8x	-0.2x	0.1x	0.3x	1.6x
Avt Natural Products ($AVTNPL)	0.4x	0.3x	-0.1x	-0.1x	0.0x
Freshtrop Fruits ($FRSHTRP)	3.3x	2.5x	0.0x	0.0x	0.0x
Olympic Oil Industries ($OLYOI)	-	-	-	0.0x	0.0x
Median (8 companies)	2.1x	1.5x	0.0x	0.0x	0.0x

Vikas Granaries stock price chart

Vikas Granaries financials

mln.	FY2010	FY2011	FY2012

Revenue	3,468	1,328	1,143
EBITDA	413.1	403.1	121.7
Net income	217.6	205.1	51.279
CAPEX	217.3	210.9	0.000
Debt	1,202	1,244	1,451
Cash	19.682	29.000	345.0

About Vikas Granaries

Vikas Granaries Limited manufactures and sells guar gum powder and its derivatives under the ADICOL name in India. The company offers its products for use in the food, pharma, textile, cosmetic, deep-drilling, explosives, paper, tanneries, and other industries. Vikas Granaries Limited also markets its products in the United States, Europe, Brazil, Japan, China, Australia, South Africa, etc. Vikas Granaries Limited was formerly known as Adarsh Derivatives Limited. The company was incorporated in 1994 and is based in Sri Ganganagar, India.