Emami EBITDA surged on 25.4% in 2015 and Revenue surged on 21.8%
13-05-2015 • About Emami (
$EMAMILTD) • By InTwits
Emami reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Emami has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 948 in FY2015, 606 in FY2014, 393 in FY2013, 486 in FY2012, 60.3 in FY2011
- The company has highly profitable business model: ROIC is at 45.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Emami ($EMAMILTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,471 | 14,535 | 16,991 | 18,208 | 22,172 | 21.8% |
| EBITDA | 2,715 | 3,042 | 3,492 | 4,421 | 5,543 | 25.4% |
| Net Income | 2,287 | 2,588 | 3,147 | 4,025 | 4,856 | 20.7% |
Balance Sheet
|
|---|
| Cash | 92 | 134 | 2,813 | 2,685 | 3,531 | 31.5% |
| Short Term Debt | 232 | 1,031 | 866 | 202 | 342 | 69.4% |
| Long Term Debt | 2,062 | 527 | 282 | 174 | 17 | -90.2% |
Cash flow
|
|---|
| Capex | 493 | 1,156 | 852 | 654 | 1,098 | 67.9% |
Ratios
|
|---|
| Revenue growth | -53.7% | 16.6% | 16.9% | 7.2% | 21.8% | |
| EBITDA growth | 10.3% | 12.0% | 14.8% | 26.6% | 25.4% | |
| EBITDA Margin | 21.8% | 20.9% | 20.5% | 24.3% | 25.0% | 0.7% |
| Net Income Margin | 18.3% | 17.8% | 18.5% | 22.1% | 21.9% | -0.2% |
| CAPEX, % of revenue | 4.0% | 8.0% | 5.0% | 3.6% | 5.0% | 1.4% |
| ROIC | 28.2% | 31.5% | 36.7% | 43.3% | 45.4% | 2.2% |
| ROE | 34.8% | 37.1% | 42.4% | 47.1% | 44.9% | -2.2% |
| Net Debt/EBITDA | 0.8x | 0.5x | -0.5x | -0.5x | -0.6x | -0.1x |
Revenue and profitability
Emami's Revenue surged on 21.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.72 pp from 24.3% to 25.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Emami had CAPEX/Revenue of 5.0%. Emami showed decline in CAPEX/Revenue of 3.0 pp from 8.0% in FY2012 to 5.0% in FY2015. It's average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at high and attractive ROIC (45.44%) and ROE (44.91%). ROIC increased on 2.2 pp from 43.3% to 45.4% in FY2015. ROE decreased on 2.2 pp from 47.1% to 44.9% in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -0.5x to -0.6x in FY2015. Debt decreased on 4.6% in FY2015 while cash surged on 31.5% in FY2015.
Valuation
The company's trades at EV/EBITDA 37.6x and P/E 43.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 46.9x with the industry average at 4.7x.
Appendix 1: Peers in Personal Products
Below we provide Emami benchmarking against other companies in Personal 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -65.3% | 29.4% | 29.9% | 21.5% | |
| Godrej Consumer Products ($GODREJCP) | | 32.0% | 31.7% | 18.6% | 8.7% |
| Dabur India ($DABUR) | | 29.3% | 16.3% | 15.0% | 10.3% |
| Colgate-Palmolive (India) ($COLPAL) | -55.8% | 17.8% | 17.5% | 13.1% | |
| Hindustan Unilever ($HINDUNILVR) | | 17.0% | 14.5% | 8.4% | 9.3% |
| |
|---|
| Median (7 companies) | -60.6% | 28.1% | 17.5% | 13.1% | 9.8% |
|---|
| Emami ($EMAMILTD) | | 16.6% | 16.9% | 7.2% | 21.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 27.2% | 28.1% | 20.9% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.6% | 16.3% | 15.4% | 20.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 22.6% | 21.7% | 21.0% | 18.6% | |
| Hindustan Unilever ($HINDUNILVR) | 14.0% | 15.2% | 16.0% | 16.6% | 17.4% |
| Dabur India ($DABUR) | 18.7% | 16.2% | 16.0% | 16.3% | 16.8% |
| |
|---|
| Median (7 companies) | 17.2% | 16.3% | 16.0% | 16.6% | 16.6% |
|---|
| Emami ($EMAMILTD) | 21.8% | 20.9% | 20.5% | 24.3% | 25.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 8.7% | 5.0% | 16.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 1.8% | 3.8% | 4.9% | 9.0% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 5.5% | 4.2% | 2.2% | 7.2% | |
| Dabur India ($DABUR) | 22.7% | 4.4% | 3.9% | 3.0% | 3.4% |
| Hindustan Unilever ($HINDUNILVR) | 1.7% | 1.2% | 1.7% | 2.1% | 1.9% |
| |
|---|
| Median (7 companies) | 5.7% | 3.8% | 4.1% | 3.0% | 2.3% |
|---|
| Emami ($EMAMILTD) | 4.0% | 8.0% | 5.0% | 3.6% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 96.0% | 99.9% | 114.4% | 133.0% | 133.9% |
| Colgate-Palmolive (India) ($COLPAL) | 134.8% | 121.4% | 120.4% | 104.4% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 25.2% | 28.1% | 30.3% | 43.2% | |
| Dabur India ($DABUR) | 36.5% | 29.4% | 28.7% | 30.8% | 31.3% |
| Marico ($MARICO) | 25.9% | 23.2% | 22.6% | 26.9% | 36.1% |
| |
|---|
| Median (9 companies) | 25.7% | 25.6% | 28.7% | 26.9% | 33.7% |
|---|
| Emami ($EMAMILTD) | 28.2% | 31.5% | 36.7% | 43.3% | 45.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 0.0x | 1.1x | 1.9x | |
| Godrej Consumer Products ($GODREJCP) | 2.7x | 1.6x | 1.7x | 1.5x | 1.7x |
| Cupid ($CUPID) | 2.2x | 1.7x | 0.5x | 1.4x | |
| Marico ($MARICO) | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
| Dabur India ($DABUR) | 1.0x | 0.8x | 1.2x | 0.3x | 0.5x |
| |
|---|
| Median (8 companies) | 0.7x | 0.8x | 0.8x | 0.6x | 0.4x |
|---|
| Emami ($EMAMILTD) | 0.8x | 0.5x | -0.5x | -0.5x | -0.6x |
