Acc reports 16.5% EBITDA decline in 2016 and 1.4 pp EBITDA Margin decline from 14.4% to 13.0%
03-02-2017 • About Acc (
$ACC) • By InTwits
Acc reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Acc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's in pair with industry average of 7.0%
- CAPEX is quite volatile: ₹5,227m in FY2016, ₹11,236m in FY2015, ₹16,062m in FY2014, ₹9,627m in FY2013, ₹5,722m in FY2012
- The company has business model with low profitability: ROIC is 8.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 7.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 14.4% to 13.0% in FY2016.
Net Income margin increased slightly on 0.54 pp from 5.0% to 5.5% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 4.8%. The company showed decline in CAPEX/Revenue of 3.8 pp from 8.6% in FY2013 to 4.8% in FY2016. For the last three years the average CAPEX/Revenue was 9.3%. During the last 5 years CAPEX as a % of Revenue topped in FY2014 at 13.7% and was declining since that time.
Return on investment
The company operates at low ROIC (8.9%) and ROE (7.1%). ROIC decreased slightly on 1.0 pp from 9.9% to 8.9% in FY2016. ROE showed almost no change in FY2016. ROIC stuck to a declining trend at -2.6 pp per annum in FY2012-FY2016. ROE declined at -2.3 pp per annum in FY2012-FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 273%.
Management team
Acc's CFO Sunil K Nayak has spent 12 years with the company.
Financial and operational results
Acc ($ACC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 113,582 | 111,694 | 117,388 | 117,972 | 109,456 | -7.2% |
| EBITDA | 21,966 | 16,300 | 15,133 | 17,019 | 14,207 | -16.5% |
| Net Income | 10,593 | 10,947 | 11,618 | 5,876 | 6,044 | 2.9% |
Balance Sheet
|
|---|
| Cash | 6,807 | 5,057 | 3,098 | 606 | 2,261 | 273.2% |
| Short Term Debt | 780 | 350 | 0 | 0 | 0 | |
| Long Term Debt | 850 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 5,722 | 9,627 | 16,062 | 11,236 | 5,227 | -53.5% |
Ratios
|
|---|
| Revenue growth | 13.4% | -1.7% | 5.1% | 0.5% | -7.2% | |
| EBITDA growth | 14.3% | -25.8% | -7.2% | 12.5% | -16.5% | |
|
|---|
| EBITDA Margin | 19.3% | 14.6% | 12.9% | 14.4% | 13.0% | -1.4% |
| Net Income Margin | 9.3% | 9.8% | 9.9% | 5.0% | 5.5% | 0.5% |
| CAPEX, % of revenue | 5.0% | 8.6% | 13.7% | 9.5% | 4.8% | -4.7% |
|
|---|
| ROIC | 20.2% | 12.7% | 11.0% | 9.9% | 8.9% | -1.0% |
| ROE | 14.8% | 14.4% | 14.5% | 7.1% | 7.1% | 0.0% |
| Net Debt/EBITDA | -0.2x | -0.3x | -0.2x | -0.0x | -0.2x | -0.1x |
Peers in Cement & Cement Products
Below we provide Acc benchmarking against other companies in Cement & Cement Products 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 |
|---|
| Deccan Cements ($DECCANCE) | - | -2.1% | -21.6% | 11.9% | 32.3% |
| Ncl Industries ($NCLIND) | - | -15.8% | -3.0% | 30.8% | 23.8% |
| J.K.Cement ($JKCEMENT) | - | 14.7% | -4.0% | 21.2% | 10.9% |
| K.C.P ($KCP) | - | 11.7% | -8.2% | 12.4% | 9.2% |
| Kakatiya Cement Sugar & Industries ($KAKATCEM) | - | 9.0% | 8.8% | -3.9% | 9.1% |
| |
|---|
| Median (14 companies) | 14.6% | 11.7% | -1.6% | 7.3% | -0.1% |
|---|
| Acc ($ACC) | - | -1.7% | 5.1% | 0.5% | -7.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deccan Cements ($DECCANCE) | 22.8% | 13.2% | 14.7% | 14.9% | 19.9% |
| Ncl Industries ($NCLIND) | 26.4% | 13.6% | 6.7% | - | 18.8% |
| K.C.P ($KCP) | 19.2% | 9.4% | 11.7% | 13.0% | 18.1% |
| India Cements ($INDIACEM) | 20.6% | 18.4% | 12.4% | 15.1% | 17.8% |
| Heidelbergcement India ($HEIDELBERG) | 8.3% | 9.3% | 15.9% | 7.4% | 15.3% |
| |
|---|
| Median (14 companies) | 16.2% | 13.4% | 11.7% | 11.0% | 13.5% |
|---|
| Acc ($ACC) | 19.3% | 14.6% | 12.9% | 14.4% | 13.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orient Cement ($ORIENTCEM) | - | 2.9% | - | 59.7% | 24.5% |
| K.C.P ($KCP) | 8.6% | 9.9% | 12.6% | 5.2% | 19.8% |
| J.K.Cement ($JKCEMENT) | 6.5% | 18.8% | 55.8% | 16.2% | 9.2% |
| Heidelbergcement India ($HEIDELBERG) | 51.5% | 19.2% | - | - | 7.6% |
| Birla Corporation ($BIRLACORPN) | 19.1% | 7.1% | 5.5% | 6.9% | 5.1% |
| |
|---|
| Median (12 companies) | 6.5% | 7.1% | 5.5% | 5.1% | 4.2% |
|---|
| Acc ($ACC) | 5.0% | 8.6% | 13.7% | 9.5% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 38.6% | 42.7% | 13.9% | 26.9% | 23.6% |
| Deccan Cements ($DECCANCE) | 17.4% | 8.0% | 6.4% | 9.1% | 20.8% |
| K.C.P ($KCP) | 17.6% | 6.7% | 7.1% | 9.3% | 15.0% |
| Indian Hume Pipe Co ($INDIANHUME) | 7.6% | 13.8% | 15.0% | 18.0% | 14.5% |
| Visaka Industries ($VIKASAS) | 14.1% | 16.6% | 6.4% | 8.3% | 8.8% |
| |
|---|
| Median (15 companies) | 13.7% | 8.3% | 6.4% | 8.1% | 8.2% |
|---|
| Acc ($ACC) | 20.2% | 12.7% | 11.0% | 9.9% | 8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 17.1x | 358.6x |
| Orient Cement ($ORIENTCEM) | - | -0.1x | 1.1x | 3.5x | 6.8x |
| Prism Cement ($PRISMCEM) | 4.8x | 6.0x | 10.0x | 6.0x | 5.3x |
| J.K.Cement ($JKCEMENT) | 2.3x | 2.3x | 6.9x | 5.8x | 5.2x |
| India Cements ($INDIACEM) | 3.2x | 3.5x | 5.5x | 4.6x | 3.7x |
| |
|---|
| Median (14 companies) | 2.1x | 2.8x | 3.1x | 2.7x | 3.1x |
|---|
| Acc ($ACC) | -0.2x | -0.3x | -0.2x | -0.0x | -0.2x |
