Shasun Pharmaceuticals CAPEX dropped on 22.5% in 2015 while Revenue increased on 8.6%
30-04-2015 • About Shasun Pharmaceuticals (
$SHASUNPHAR) • By InTwits
Shasun Pharmaceuticals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shasun Pharmaceuticals has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.4%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 1,486 in FY2015, 1,919 in FY2014, 1,650 in FY2013, 1,109 in FY2012, 355 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.7%
- It operates with high leverage: Net Debt/EBITDA is 6.2x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shasun Pharmaceuticals ($SHASUNPHAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,345 | 10,664 | 10,848 | 12,127 | 13,166 | 8.6% |
| EBITDA | 715 | 1,230 | 1,115 | 1,136 | 1,196 | 5.3% |
| Net Income | 266 | 1,006 | 530 | 302 | 238 | -21.4% |
Balance Sheet
|
|---|
| Cash | 88 | 140 | 60 | 121 | 26 | -78.3% |
| Short Term Debt | 2,618 | 2,752 | 3,879 | 5,107 | 5,510 | 7.9% |
| Long Term Debt | 672 | 779 | 1,183 | 1,817 | 1,885 | 3.7% |
Cash flow
|
|---|
| Capex | 355 | 1,109 | 1,650 | 1,919 | 1,486 | -22.5% |
Ratios
|
|---|
| Revenue growth | -46.5% | 27.8% | 1.7% | 11.8% | 8.6% | |
| EBITDA growth | -21.0% | 72.1% | -9.3% | 1.8% | 5.3% | |
| EBITDA Margin | 8.6% | 11.5% | 10.3% | 9.4% | 9.1% | -0.3% |
| Net Income Margin | 3.2% | 9.4% | 4.9% | 2.5% | 1.8% | -0.7% |
| CAPEX, % of revenue | 4.3% | 10.4% | 15.2% | 15.8% | 11.3% | -4.5% |
| ROIC | 7.6% | 16.7% | 8.7% | 6.1% | 6.7% | 0.7% |
| ROE | 26.4% | 65.7% | 21.5% | 10.6% | 6.9% | -3.7% |
| Net Debt/EBITDA | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x | 0.2x |
Revenue and profitability
Shasun Pharmaceuticals's Revenue increased on 8.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.0 pp from 11.2% to 0.23% in FY2015.
Net Income marign decreased slightly on 0.69 pp from 2.5% to 1.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Shasun Pharmaceuticals had CAPEX/Revenue of 11.3%. Shasun Pharmaceuticals showed small growth in CAPEX/Revenue of 0.89 pp from 10.4% in FY2012 to 11.3% in FY2015. For the last three years the average CAPEX/Revenue was 14.1%.The company investments to CAPEX were large: 124% of EBITDA.
Return on investment
The company operates at low ROIC (6.73%) and ROE (6.88%). ROIC increased slightly on 0.67 pp from 6.1% to 6.7% in FY2015. ROE decreased on 3.7 pp from 10.6% to 6.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.2x and Debt / EBITDA is 6.2x. Net Debt / EBITDA surged on 0.2x from 6.0x to 6.2x in FY2015. Debt increased on 6.8% in FY2015 while cash dropped on 78.3% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Shasun Pharmaceuticals benchmarking vs. other companies in Pharmaceuticals 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 |
|---|
| Granules India ($GRANULES) | | 37.6% | 16.9% | 43.4% | 18.1% |
| Marksans Pharma ($MARKSANS) | -66.6% | 16.7% | 23.3% | 43.3% | |
| Sun Pharmaceutical Industries ($SUNPHARMA) | -87.8% | 39.9% | 40.4% | 42.4% | |
| Torrent Pharmaceuticals ($TORNTPHARM) | -63.5% | 22.7% | 17.7% | 32.2% | |
| Abbott India ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -45.7% | 16.6% | 14.9% | 13.7% | 6.6% |
|---|
| Shasun Pharmaceuticals ($SHASUNPHAR) | | 27.8% | 1.7% | 11.8% | 8.6% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | | | 52.1% | 57.4% | |
| Omega Laboratories ($OMEGALAB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | | 46.9% | 26.1% | 28.7% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sun Pharmaceutical Industries ($SUNPHARMA) | 34.3% | 40.8% | 44.3% | 44.9% | |
| Divi'S Laboratories ($DIVISLAB) | 38.1% | 37.2% | 38.2% | 40.2% | |
| Venus Remedies ($VENUSREM) | 24.9% | 25.2% | 25.6% | 25.5% | |
| Dr.Reddy'S Laboratories ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.5% | 12.9% | 13.4% | 15.0% | 16.2% |
|---|
| Shasun Pharmaceuticals ($SHASUNPHAR) | 8.6% | 11.5% | 10.3% | 9.4% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granules India ($GRANULES) | 5.3% | 8.8% | 15.2% | 24.3% | 11.4% |
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 24.3% | 8.4% | 10.9% | 21.6% | |
| Venus Remedies ($VENUSREM) | 26.6% | 23.2% | 22.2% | 17.5% | |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| Ipca Laboratories ($IPCALAB) | 10.3% | 11.2% | 8.3% | 11.6% | |
| |
|---|
| Median (28 companies) | 7.4% | 7.7% | 7.5% | 5.7% | 10.9% |
|---|
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.3% | 10.4% | 15.2% | 15.8% | 11.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alembic Pharmaceuticals ($APLLTD) | | 27.5% | 29.1% | 41.5% | 35.7% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 18.9% | 24.8% | 31.1% | 35.0% | |
| Marksans Pharma ($MARKSANS) | -25.8% | -142.4% | 34.9% | 33.8% | |
| Torrent Pharmaceuticals ($TORNTPHARM) | 22.3% | 26.4% | 30.5% | 33.2% | |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | |
| |
|---|
| Median (63 companies) | 14.0% | 13.7% | 13.8% | 15.6% | 9.6% |
|---|
| Shasun Pharmaceuticals ($SHASUNPHAR) | 7.6% | 16.7% | 8.7% | 6.1% | 6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ind-Swift Laboratories ($INDSWFTLAB) | 4.6x | 5.5x | 16.1x | 19.5x | |
| Sharon Bio-Medicine ($SHARONBIO) | 4.6x | 4.7x | 5.3x | 4.5x | |
| Jubilant Life Sciences Limited ($JUBILANT) | 5.3x | 4.0x | 3.5x | 3.5x | |
| Kopran ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| Lincoln Pharmaceuticals ($LINCOPH) | 3.6x | 3.8x | 4.3x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.5x | 1.4x | 1.2x | 0.3x | 2.1x |
|---|
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
