Unichem Laboratories reports 55.5% Net Income decline while 6.0% Revenue growth
09-05-2015 • About Unichem Laboratories (
$UNICHEMLAB) • By InTwits
Unichem Laboratories reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Unichem Laboratories has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.7%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 567 in FY2015, 309 in FY2014, 1,207 in FY2013, 875 in FY2012, 822 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Unichem Laboratories ($UNICHEMLAB) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,240 | 8,755 | 10,808 | 11,334 | 12,018 | 6.0% |
| EBITDA | 1,500 | 1,183 | 1,744 | 1,779 | 1,015 | -43.0% |
| Net Income | 950 | 713 | 1,132 | 1,693 | 754 | -55.5% |
Balance Sheet
|
|---|
| Cash | 93 | 153 | 121 | 138 | 123 | -11.5% |
| Short Term Debt | 90 | 254 | 62 | 10 | 16 | 56.5% |
| Long Term Debt | 417 | 440 | 209 | 246 | 203 | -17.4% |
Cash flow
|
|---|
| Capex | 909 | 1,131 | 980 | 1,040 | 787 | -24.4% |
Ratios
|
|---|
| Revenue growth | -42.0% | 6.2% | 23.5% | 4.9% | 6.0% | |
| EBITDA growth | -14.4% | -21.1% | 47.3% | 2.0% | -43.0% | |
| EBITDA Margin | 18.2% | 13.5% | 16.1% | 15.7% | 8.4% | -7.3% |
| Net Income Margin | 11.5% | 8.1% | 10.5% | 14.9% | 6.3% | -8.7% |
| CAPEX, % of revenue | 11.0% | 12.9% | 9.1% | 9.2% | 6.5% | -2.6% |
| ROIC | 17.9% | 11.8% | 17.3% | 15.7% | 6.7% | -9.0% |
| ROE | 16.1% | 11.1% | 16.3% | 21.9% | 9.0% | -13.0% |
| Net Debt/EBITDA | 0.3x | 0.5x | 0.1x | 0.1x | 0.1x | 0.0x |
Revenue and profitability
Unichem Laboratories's Revenue increased on 6.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign decreased on 8.7 pp from 14.9% to 6.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Unichem Laboratories's CAPEX/Revenue was 6.5% in FY2015. CAPEX/Revenue decreased on 6.4 pp from 12.9% in FY2012 to 6.5% in FY2015. For the last three years the average CAPEX/Revenue was 8.3%.The company maintained rich investment policy and has spent a big chunk of EBITDA (77.5%) to CAPEX.
Return on investment
The company operates at low ROIC (6.66%) and ROE (8.95%). ROIC decreased on 9.0 pp from 15.7% to 6.7% in FY2015. ROE dropped on 13.0 pp from 21.9% to 9.0% in FY2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA increased on 0.029x from 0.1x to 0.1x in FY2015. Debt dropped on 14.5% in FY2015 while cash dropped on 11.5% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Unichem Laboratories 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 ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -46.8% | 16.7% | 14.7% | 13.7% | 5.7% |
|---|
| Unichem Laboratories ($UNICHEMLAB) | | 6.2% | 23.5% | 4.9% | 6.0% |
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 ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 15.2% |
|---|
| Unichem Laboratories ($UNICHEMLAB) | 18.2% | 13.5% | 16.1% | 15.7% | 8.4% |
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 ($VENUSREM) | 26.6% | 23.2% | 22.2% | 17.5% | |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.3% | 10.4% | 15.2% | 15.8% | 11.3% |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| |
|---|
| Median (28 companies) | 7.3% | 7.7% | 7.5% | 5.7% | 10.9% |
|---|
| Unichem Laboratories ($UNICHEMLAB) | 11.0% | 12.9% | 9.1% | 9.2% | 6.5% |
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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | |
| |
|---|
| Median (63 companies) | 13.5% | 14.0% | 13.2% | 14.4% | 14.9% |
|---|
| Unichem Laboratories ($UNICHEMLAB) | 17.9% | 11.8% | 17.3% | 15.7% | 6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ind-Swift Laboratories ($INDSWFTLAB) | 4.6x | 5.5x | 16.1x | 19.5x | |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
| 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 ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.6x | 1.6x | 1.4x | 0.5x | 2.2x |
|---|
| Unichem Laboratories ($UNICHEMLAB) | 0.3x | 0.5x | 0.1x | 0.1x | 0.1x |
