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Fertilizers & Chemicals Travancore reports 2,795% EBITDA growth in 2020 and 9.6 pp EBITDA Margin growth from 0.49% to 10.1%

24-09-2020 • About Fertilizers & Chemicals Travancore ($FACT) • By InTwits

Fertilizers & Chemicals Travancore reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
  • EBITDA Margin is quite volatile: 10.1% in FY2020, 0.5% in FY2019, 8.7% in FY2018, 2.4% in FY2017, -11.9% in FY2016
  • Fertilizers & Chemicals Travancore has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
  • The company has highly profitable business model: ROIC is 42.1%
  • It operates with medium-size leverage: Net Debt/EBITDA is 3.2x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Fertilizers & Chemicals Travancore's Revenue jumped on 41.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.9 pp from -11.7% to -7.8% in FY2020.

Net Income margin jumped on 26.9 pp from 8.3% to 35.2% in FY2020. Net Income margin grew at 14.5 pp per annum in the last 5 years.

Leverage (Debt)


Debt level is 3.2x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA dropped on 232.0x from 235.2x to 3.2x in FY2020. Debt dropped on 59.1% while cash surged on 658%.

Fertilizers & Chemicals Travancore has no short term refinancing risk: cash is higher than short term debt (197.2%).

Management team


Alagarsamy Ganesan is a the company's CFO. Alagarsamy Ganesan has spent 1 year at the company.

Financial and operational results


FY ended 31-03-2020

Fertilizers & Chemicals Travancore ($FACT) key annual financial indicators

mln. INR201620172018201920202020/2019
P&L
Revenue17,36018,83319,28719,54627,69941.7%
EBITDA-2,0694521,679962,7912,794.5%
Net Income-4,522-2,627-1,2911,6279,755499.6%
Balance Sheet
Cash20232346164487657.9%
Short Term Debt1,8356,3185,0744,779247-94.8%
Long Term Debt16,27117,70517,70517,9609,056-49.6%
Cash flow
Capex32779100
Ratios
Revenue growth-12.3%8.5%2.4%1.3%41.7%
EBITDA growth25.4%-121.9%271.0%-94.3%2,794.5%

EBITDA Margin-11.9%2.4%8.7%0.5%10.1%9.6%
Net Income Margin-26.0%-13.9%-6.7%8.3%35.2%26.9%
CAPEX, % of revenue0.2%0.4%0.5%0.0%0.0%

ROIC-60.9%3.4%19.7%-1.9%42.1%44.0%
Net Debt/EBITDA52.4x13.3x235.2x3.2x-232.0x

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  FY2016 FY2017 FY2018 FY2019 FY2020
Ginni Filaments ($GINNIFIL)-0.4%-7.5%14.6%-1.3%
 
Median (1 company)5.2%-8.6%-9.4%14.6%-1.3%
Fertilizers & Chemicals Travancore ($FACT)-8.5%2.4%1.3%41.7%


Top companies by EBITDA margin, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Vardhman Acrylics ($VARDHACRLC)9.9%10.2%9.6%-8.0%
Ginni Filaments ($GINNIFIL)9.6%10.3%7.5%6.4%7.5%
 
Median (2 companies)10.3%10.3%8.6%6.4%7.8%
Fertilizers & Chemicals Travancore ($FACT)-11.9%2.4%8.7%0.5%10.1%


Top companies by CAPEX/Revenue, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Vardhman Acrylics ($VARDHACRLC)0.8%0.3%0.5%-1.8%
Ginni Filaments ($GINNIFIL)-4.3%5.1%1.4%1.2%
 
Median (2 companies)4.2%2.3%2.8%1.4%1.5%
Fertilizers & Chemicals Travancore ($FACT)0.2%0.4%0.5%0.0%0.0%


Top companies by ROIC, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Ginni Filaments ($GINNIFIL)9.8%12.4%6.2%5.6%6.9%
Vardhman Acrylics ($VARDHACRLC)-9.4%7.5%--
 
Median (2 companies)5.3%10.9%6.8%5.6%6.9%
Fertilizers & Chemicals Travancore ($FACT)-60.9%3.4%19.7%-1.9%42.1%


Top companies by Net Debt / EBITDA

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Ginni Filaments ($GINNIFIL)3.4x2.9x5.0x5.4x5.1x
Vardhman Acrylics ($VARDHACRLC)-0.0x-0.2x-0.1x--4.6x
 
Median (2 companies)0.7x1.3x2.5x5.4x0.2x
Fertilizers & Chemicals Travancore ($FACT)-52.4x13.3x235.2x3.2x