Essel Propack Net Income jumped on 30.4% in 2015 and Revenue increased on 9.2%
28-04-2015 • About Essel Propack (
$ESSELPRO) • By InTwits
Essel Propack reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 17.2% in FY2015 vs. 16.9% in FY2014 vs. 17.8% in FY2011
- Essel Propack has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 88.3 in FY2015, 1,467 in FY2014, 5,150 in FY2013, 15,307 in FY2012, 3,395 in FY2011
- The company has highly profitable business model: ROIC is at 14.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Essel Propack ($ESSELPRO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,946 | 15,697 | 18,101 | 21,266 | 23,230 | 9.2% |
| SG&A | | | | | 5 | |
| EBITDA | 2,487 | 2,671 | 3,150 | 3,600 | 3,986 | 10.7% |
| Net Income | 473 | 514 | 810 | 1,078 | 1,406 | 30.4% |
Balance Sheet
|
|---|
| Cash | 607 | 874 | 633 | 746 | 749 | 0.4% |
| Short Term Debt | 3,389 | 5,122 | 4,187 | 3,795 | 3,184 | -16.1% |
| Long Term Debt | 4,718 | 4,229 | 5,437 | 6,449 | 6,434 | -0.2% |
Cash flow
|
|---|
| Capex | 1,096 | 1,567 | 1,221 | 1,801 | 2,186 | 21.3% |
Ratios
|
|---|
| Revenue growth | -50.8% | 12.6% | 15.3% | 17.5% | 9.2% | |
| EBITDA growth | | 7.4% | 18.0% | 14.3% | 10.7% | |
| EBITDA Margin | 17.8% | 17.0% | 17.4% | 16.9% | 17.2% | 0.2% |
| Net Income Margin | 3.4% | 3.3% | 4.5% | 5.1% | 6.1% | 1.0% |
| SG&A, % of revenue | | | | | 0.0% | 0.0% |
| CAPEX, % of revenue | 7.9% | 10.0% | 6.7% | 8.5% | 9.4% | 0.9% |
| ROIC | | 8.6% | 9.9% | 12.5% | 14.7% | 2.3% |
| ROE | | 6.0% | 8.9% | 13.1% | 18.9% | 5.8% |
| Net Debt/EBITDA | 3.0x | 3.2x | 2.9x | 2.6x | 2.2x | -0.4x |
Revenue and profitability
Essel Propack's Revenue increased on 9.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 6.1% to 9.3% in FY2015.
Net Income marign increased slightly on 0.98 pp from 5.1% to 6.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Essel Propack had CAPEX/Revenue of 9.4%. The company's CAPEX/Revenue decreased slightly on 0.58 pp from 10.0% in FY2012 to 9.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.2%.The company maintained rich investment policy and has spent a big chunk of EBITDA (54.8%) to CAPEX.
Return on investment
The company operates at good ROIC (14.72%) and ROE (18.89%). ROIC increased on 2.3 pp from 12.5% to 14.7% in FY2015. ROE increased on 5.8 pp from 13.1% to 18.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.4x. Net Debt / EBITDA dropped on 0.4x from 2.6x to 2.2x in FY2015. Debt decreased on 6.1% in FY2015 while cash showed almost no change in FY2015.
Appendix 1: Peers in Containers & Packaging
Below you can find Essel Propack benchmarking vs. other companies in Containers & Packaging 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neo Corp International ($NEOCORP) | -63.2% | 36.7% | 45.2% | 56.4% | |
| Gopala Polyplast ($GOPALA) | -42.9% | -1.7% | 17.0% | 29.6% | |
| Shree Rama Multi-Tech ($SHREERAMA) | -18.3% | -25.0% | 18.2% | 23.3% | |
| Shri Jagdamba Polymers ($SHRJAGP) | -66.8% | 35.5% | 38.3% | 21.7% | |
| Time Technoplast ($TIMETECHNO) | -58.8% | 19.8% | 17.6% | 21.6% | |
| |
|---|
| Median (19 companies) | -46.5% | 18.0% | 16.9% | 13.9% | |
|---|
| Essel Propack ($ESSELPRO) | | 12.6% | 15.3% | 17.5% | 9.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | 13.9% | 19.2% | 22.5% | |
| Manaksia ($MANAKSIA) | 16.5% | 14.4% | 17.4% | 20.3% | |
| Piramal Glass ($PIRAMGLAS) | 24.4% | 23.7% | 18.9% | 15.5% | |
| Kg Petrochem ($KGPETRO) | 11.6% | 16.0% | 12.8% | 14.7% | |
| Time Technoplast ($TIMETECHNO) | 18.5% | 15.9% | 16.2% | 14.1% | |
| |
|---|
| Median (14 companies) | 11.5% | 12.9% | 10.6% | 11.4% | |
|---|
| Essel Propack ($ESSELPRO) | 17.8% | 17.0% | 17.4% | 16.9% | 17.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Piramal Glass ($PIRAMGLAS) | 12.6% | 20.7% | 6.0% | 7.7% | |
| Control Print ($CONTROLPR) | | 3.0% | 5.0% | 7.5% | |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 21.7% | 75.5% | 25.0% | 6.7% | |
| Time Technoplast ($TIMETECHNO) | 18.5% | 17.9% | 11.1% | 6.2% | |
| Manaksia ($MANAKSIA) | 9.0% | 9.0% | 4.8% | 4.7% | |
| |
|---|
| Median (6 companies) | 12.5% | 8.6% | 8.6% | 6.5% | |
|---|
| Essel Propack ($ESSELPRO) | 7.9% | 10.0% | 6.7% | 8.5% | 9.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | | 19.7% | 22.2% | |
| Manaksia ($MANAKSIA) | 12.7% | 12.9% | 15.5% | 16.0% | |
| Neo Corp International ($NEOCORP) | 17.4% | 14.9% | 13.7% | 15.7% | |
| Kg Petrochem ($KGPETRO) | 5.0% | 10.8% | 10.1% | 14.3% | |
| Hitech Plast ($HITECHPLAS) | 18.1% | 13.8% | 12.6% | 14.0% | |
| |
|---|
| Median (32 companies) | 8.5% | 9.4% | 9.9% | 11.2% | |
|---|
| Essel Propack ($ESSELPRO) | | 8.6% | 9.9% | 12.5% | 14.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Union Quality Plastics ($UNQTYMI) | | | 14.9x | 12.9x | |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 2.1x | 7.4x | 15.8x | 11.2x | |
| Piramal Glass ($PIRAMGLAS) | 3.0x | 3.1x | 4.1x | 4.3x | |
| Kg Petrochem ($KGPETRO) | 6.2x | 3.3x | 3.6x | 3.4x | |
| Uflex ($UFLEX) | 1.0x | 2.7x | 3.0x | 3.2x | |
| |
|---|
| Median (18 companies) | 3.2x | 3.2x | 3.5x | 0.9x | |
|---|
| Essel Propack ($ESSELPRO) | 3.0x | 3.2x | 2.9x | 2.6x | 2.2x |
