Fertilizers & Chemicals Travancore Net Debt / EBITDA dropped on 39.1x from 52.4x to 13.3x in 2018 and Debt decreased on 5.2%
30-05-2018 • About Fertilizers & Chemicals Travancore (
$FACT) • By InTwits
Fertilizers & Chemicals Travancore reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Fertilizers & Chemicals Travancore motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -3.1% for the sames years
- Fertilizers & Chemicals Travancore has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is 19.7%
- It operates with high leverage: Net Debt/EBITDA is 13.3x while industry average is 3.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 2.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.3 pp from 2.4% to 8.7% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2016 at -11.9% and was growing since that time.
Net Income margin increased on 7.3 pp from -13.9% to -6.7% in FY2018. During the last 5 years Net Income margin bottomed in FY2016 at -26.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2018 Fertilizers & Chemicals Travancore had CAPEX/Revenue of 0.47%. The company showed almost no change in CAPEX/Revenue from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.36%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2016 at 0.19% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.3x and Debt / EBITDA is 13.6x. Net Debt / EBITDA dropped on 39.1x from 52.4x to 13.3x in FY2018. Debt decreased on 5.2% while cash surged on 42.8%.
Fertilizers & Chemicals Travancore has short term refinancing risk: cash is only 9.1% of short term debt.
Financial and operational results
FY ended 31-03-2018
Fertilizers & Chemicals Travancore ($FACT) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 22,094 | 19,788 | 17,360 | 18,833 | 19,287 | 2.4% |
| EBITDA | -1,451 | -1,651 | -2,069 | 452 | 1,679 | 271.0% |
| Net Income | -2,650 | -3,999 | -4,522 | -2,627 | -1,291 | |
Balance Sheet
|
|---|
| Cash | 268 | 375 | 202 | 323 | 461 | 42.8% |
| Short Term Debt | 9,211 | 9,128 | 1,835 | 6,318 | 5,074 | -19.7% |
| Long Term Debt | 1,898 | 1,615 | 16,271 | 17,705 | 17,705 | 0.0% |
Cash flow
|
|---|
| Capex | 441 | 94 | 32 | 77 | 91 | 19.4% |
Ratios
|
|---|
| Revenue growth | -4.6% | -10.4% | -12.3% | 8.5% | 2.4% | |
| EBITDA growth | -13.0% | 13.7% | 25.4% | -121.9% | 271.0% | |
|
|---|
| EBITDA Margin | -6.6% | -8.3% | -11.9% | 2.4% | 8.7% | 6.3% |
| Net Income Margin | -12.0% | -20.2% | -26.0% | -13.9% | -6.7% | 7.3% |
| CAPEX, % of revenue | 2.0% | 0.5% | 0.2% | 0.4% | 0.5% | 0.1% |
|
|---|
| ROIC | -26.0% | -41.3% | -60.9% | 3.4% | 19.7% | 16.3% |
| Net Debt/EBITDA | | | | 52.4x | 13.3x | -39.1x |
Peers in
Below you can find Fertilizers & Chemicals Travancore benchmarking vs. other companies in 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | - | 0.4% | -7.5% |
| Vardhman Acrylics ($VARDHACRLC) | - | - | - | -17.7% | -11.2% |
| |
|---|
| Median (2 companies) | 3.9% | 8.8% | 5.2% | -8.6% | -9.4% |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | - | 8.5% | 2.4% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vardhman Acrylics ($VARDHACRLC) | - | - | 9.9% | 10.2% | 9.6% |
| Ginni Filaments ($GINNIFIL) | - | - | 9.6% | 10.3% | 7.5% |
| |
|---|
| Median (2 companies) | 14.7% | 10.7% | 10.3% | 10.3% | 8.6% |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | -11.9% | 2.4% | 8.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | - | 4.3% | 5.1% |
| Vardhman Acrylics ($VARDHACRLC) | - | - | 0.8% | 0.3% | 0.5% |
| |
|---|
| Median (2 companies) | 4.5% | 5.0% | 4.2% | 2.3% | 2.8% |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | 0.2% | 0.4% | 0.5% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vardhman Acrylics ($VARDHACRLC) | - | - | - | 9.4% | 7.5% |
| Ginni Filaments ($GINNIFIL) | - | - | 9.8% | 12.4% | 6.2% |
| |
|---|
| Median (2 companies) | 5.9% | 4.4% | 5.3% | 10.9% | 6.8% |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | -60.9% | 3.4% | 19.7% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | 3.4x | 2.9x | 5.0x |
| Vardhman Acrylics ($VARDHACRLC) | - | - | -0.0x | -0.2x | -0.1x |
| |
|---|
| Median (2 companies) | 2.2x | 1.1x | 0.7x | 1.3x | 2.5x |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | - | 52.4x | 13.3x |
