Ptl Enterprises Net Income jumped on 38.2% in 2015 and Revenue surged on 35.1%

12-05-2015 • About Ptl Enterprises ($PTL) • By InTwits

Ptl Enterprises reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

EBITDA Margin is declining: 18.5% in FY2015 vs. 21.6% in FY2014 vs. 27.6% in FY2011
Ptl Enterprises has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 1.2%.
CAPEX is quite volatile: 171 in FY2015, 73.3 in FY2014, 115 in FY2013, 113 in FY2012, 20.2 in FY2011
The company has highly profitable business model: ROIC is at 22.1%
It operates with medium-size leverage: Net Debt/EBITDA is 1.2x while industry average is 1.4x

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Ptl Enterprises ($PTL) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	1,943	2,291	2,580	3,038	4,104	35.1%
EBITDA	535	609	585	655	760	15.9%
Net Income	159	175	171	243	335	38.2%
Balance Sheet
Cash	111	59	77	218	270	23.5%
Short Term Debt	385	67	42	404	458	13.4%
Long Term Debt	1,704	1,362	1,206	1,100	690	-37.2%
Cash flow
Capex	20	113	115	73	171	133.0%
Ratios
Revenue growth	-60.0%	17.9%	12.6%	17.7%	35.1%
EBITDA growth	452.6%	13.7%	-4.0%	12.0%	15.9%
EBITDA Margin	27.6%	26.6%	22.7%	21.6%	18.5%	-3.1%
Net Income Margin	8.2%	7.6%	6.6%	8.0%	8.2%	0.2%
CAPEX, % of revenue	1.0%	5.0%	4.5%	2.4%	4.2%	1.7%
ROIC	18.1%	18.5%	19.5%	21.1%	22.1%	1.0%
ROE	28.5%	17.3%	15.5%	19.7%	23.2%	3.6%
Net Debt/EBITDA	3.7x	2.2x	2.0x	2.0x	1.2x	-0.8x

Revenue and profitability

The company's Revenue jumped on 35.1% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 21.6% to 18.5% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

Ptl Enterprises's CAPEX/Revenue was 4.2% in FY2015. Ptl Enterprises showed small CAPEX/Revenue decline of 0.79 pp from 5.0% in FY2012 to 4.2% in FY2015. It's average CAPEX/Revenue for the last three years was 3.7%.

Return on investment

The company operates at high and attractive ROIC (22.12%) and ROE (23.24%). ROIC increased slightly on 1.0 pp from 21.1% to 22.1% in FY2015. ROE increased on 3.6 pp from 19.7% to 23.2% in FY2015.

Leverage (Debt)

Debt level is 1.2x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 2.0x to 1.2x in FY2015. Debt dropped on 23.6% in FY2015 while cash jumped on 23.5% in FY2015.

Valuation

The company's trades at EV/EBITDA 4.6x and P/E 7.9x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 6.0x with the industry average at 4.7x.

Appendix 1: Peers in Comm.Trading & Distribution

Below you can find Ptl Enterprises benchmarking vs. other companies in Comm.Trading & Distribution 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
Risa International ($RISAINTL)	285.4%			4,724.7%
Shri Krishna Prasadam ($SKP)		69.6%	57.3%	1,074.7%
Parker Agrochem Exports ($PARKERAC)	-87.9%	-77.2%	1,542.3%	39.1%
Ennore Coke ($ENNORE)	62.1%	-5.0%	-45.5%	34.0%
Gagan Polycot India ($GAGANPO)	-23.2%	-59.4%	76.3%	18.2%
Median (18 companies)	-32.8%	4.1%	13.4%	12.5%
Ptl Enterprises ($PTL)		17.9%	12.6%	17.7%	35.1%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Maxwell Industries ($MAXWELL)	6.7%	9.9%	6.7%	9.0%
Cravatex ($CRAVATEX)	12.7%	5.8%	7.4%	7.0%
Kothari Products ($KOTHARIPRO)	3.3%	5.4%	4.4%	5.9%
Risa International ($RISAINTL)			-2.3%	3.3%
Redington (India) ($REDINGTON)	2.6%	2.9%	2.7%	2.5%
Median (13 companies)	2.4%	2.7%	2.7%	1.8%	19.5%
Ptl Enterprises ($PTL)	27.6%	26.6%	22.7%	21.6%	18.5%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Maxwell Industries ($MAXWELL)	1.2%	0.9%	1.9%	2.4%
Redington (India) ($REDINGTON)	0.3%	0.2%	0.7%	0.2%
Kothari Products ($KOTHARIPRO)	0.9%	2.5%	0.1%	0.2%
Mmtc ($MMTC)	0.1%	0.0%	0.1%	0.1%
Risa International ($RISAINTL)			0.0%	0.0%
Median (5 companies)	0.5%	0.2%	0.1%	0.2%
Ptl Enterprises ($PTL)	1.0%	5.0%	4.5%	2.4%	4.2%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Kothari Products ($KOTHARIPRO)	7.4%	23.4%	20.0%	28.3%
Redington (India) ($REDINGTON)	15.5%	17.2%	16.0%	16.3%
Risa International ($RISAINTL)			-0.2%	14.8%
Bombay Cycle & Motor Agency ($BOMBCYC)			15.1%	13.5%
Mmtc ($MMTC)	1.0%	0.7%	1.6%	9.7%
Median (51 companies)	2.5%	4.5%	4.8%	9.6%
Ptl Enterprises ($PTL)	18.1%	18.5%	19.5%	21.1%	22.1%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Ph Capital ($PHCAP)				18.4x
Unitech International ($UNITINT)				5.1x
Vipul Dye Chem ($VIPULDYE)	2.9x	3.9x	5.1x	3.9x
Maxwell Industries ($MAXWELL)	5.7x	3.7x	5.8x	3.5x
Vadilal Enterprises ($VADILENT)	1.3x	2.3x	4.0x	2.3x
Median (27 companies)	3.0x	1.7x	1.8x	0.0x	0.0x
Ptl Enterprises ($PTL)	3.7x	2.2x	2.0x	2.0x	1.2x

Ptl Enterprises stock price chart

Ptl Enterprises financials

mln.	FY2010	FY2011	FY2012

Revenue	4,859	1,943	2,291
EBITDA	96.893	535.4	609.0
Net income	37.191	159.3	174.7
CAPEX	35.940	20.231	113.4
Debt	1,725	2,089	1,429
Cash	23.100	111.4	59.476

About Ptl Enterprises

PTL Enterprises Limited, through its subsidiaries, engages in the healthcare business in India. It operates through Health Care and Lease of Plant segments. The company operates Artemis Health Institute, a super-specialty hospital, which provides specialized care services in cardiology, orthopaedics, mother and child care, endocrinology, and pulmonology in Gurgaon, India. It also leases its tire manufacturing plant. The company was formerly known as Premier Tyres Ltd. PTL Enterprises Limited was incorporated in 1959 and is based in Gurgaon, India.