Century Plyboards (I) reports 147% Net Income growth and 2.8 pp EBITDA Margin growth from 13.3% to 16.1%
28-04-2015 • About Century Plyboards (I) (
$CENTURYPLY) • By InTwits
Century Plyboards (I) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Century Plyboards (I) has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.6%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 751 in FY2015, 665 in FY2014, 1,592 in FY2013, 4,471 in FY2012, 3,158 in FY2011
- The company has highly profitable business model: ROIC is at 23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Century Plyboards (I) ($CENTURYPLY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,601 | 16,674 | 11,816 | 13,477 | 15,884 | 17.9% |
| EBITDA | 2,573 | 2,923 | 1,249 | 1,795 | 2,559 | 42.5% |
| Net Income | 1,546 | 1,228 | 552 | 603 | 1,490 | 147.2% |
Balance Sheet
|
|---|
| Cash | 268 | 652 | 982 | 333 | 373 | 11.8% |
| Short Term Debt | 3,089 | 4,273 | 3,270 | 4,024 | 3,863 | -4.0% |
| Long Term Debt | 2,574 | 6,209 | 2,148 | 1,777 | 814 | -54.2% |
Cash flow
|
|---|
| Capex | 3,158 | 4,471 | 1,592 | 665 | 751 | 12.9% |
Ratios
|
|---|
| Revenue growth | -29.7% | 22.6% | -29.1% | 14.0% | 17.9% | |
| EBITDA growth | 3.6% | 13.6% | -57.3% | 43.7% | 42.5% | |
| EBITDA Margin | 18.9% | 17.5% | 10.6% | 13.3% | 16.1% | 2.8% |
| Net Income Margin | 11.4% | 7.4% | 4.7% | 4.5% | 9.4% | 4.9% |
| CAPEX, % of revenue | 23.2% | 26.8% | 13.5% | 4.9% | 4.7% | -0.2% |
| ROIC | 17.3% | 14.3% | 7.0% | 16.6% | 23.7% | 7.1% |
| ROE | 27.7% | 18.1% | 11.2% | 22.0% | 43.7% | 21.7% |
| Net Debt/EBITDA | 2.1x | 3.4x | 3.6x | 3.0x | 1.7x | -1.4x |
Revenue and profitability
The company's Revenue jumped on 17.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.8 pp from 13.3% to 16.1% in FY2015.
Net Income marign increased on 4.9 pp from 4.5% to 9.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Century Plyboards (I) had CAPEX/Revenue of 4.7%. Century Plyboards (I) showed big decline in CAPEX/Revenue of 22.1 pp from 26.8% in FY2012 to 4.7% in FY2015. Average CAPEX/Revenue for the last three years was 7.7%.
Return on investment
The company operates at high and attractive ROIC (23.66%) and ROE (43.66%). ROIC increased on 7.1 pp from 16.6% to 23.7% in FY2015. ROE surged on 21.7 pp from 22.0% to 43.7% in FY2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 3.0x to 1.7x in FY2015. Debt dropped on 19.4% in FY2015 while cash jumped on 11.8% in FY2015.
Valuation
Century Plyboards (I)'s trades at EV/EBITDA 20.5x and P/E 32.3x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 29.0x with the industry average at 4.7x.
Appendix 1: Peers in Forest Products
Below we provide Century Plyboards (I) benchmarking against other companies in Forest 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Archidply Industries ($ARCHIDPLY) | -49.4% | 11.4% | 17.3% | 12.6% | |
| |
|---|
| Median (1 company) | -49.4% | 11.4% | 17.3% | 12.6% | |
|---|
| Century Plyboards (I) ($CENTURYPLY) | | 22.6% | -29.1% | 14.0% | 17.9% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uv Boards ($UVBOARDS) | | | | | 2.6% |
| |
|---|
| Median (1 company) | 8.6% | -1.5% | 6.1% | | 2.6% |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 18.9% | 17.5% | 10.6% | 13.3% | 16.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ecoboard Industries ($ECOBOAR) | -4.0% | -1.9% | -5.4% | | |
| Mangalam Timber Products ($MANGTIMBER) | -2.1% | 1.5% | -2.6% | | |
| Oriental Veneer Products ($ORVENPR) | | | | | |
| Archidply Industries ($ARCHIDPLY) | 4.7% | -4.4% | 4.6% | | |
| Uv Boards ($UVBOARDS) | | | 12.4% | | |
| |
|---|
| Median (5 companies) | -2.1% | -1.9% | 1.0% | | |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 17.3% | 14.3% | 7.0% | 16.6% | 23.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oriental Veneer Products ($ORVENPR) | | | | 17.8x | |
| Uv Boards ($UVBOARDS) | | 3.8x | 1.9x | 0.0x | 0.0x |
| |
|---|
| Median (2 companies) | 15.6x | 8.1x | 20.8x | 8.9x | 0.0x |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 2.1x | 3.4x | 3.6x | 3.0x | 1.7x |
