Umang Dairies EBITDA surged on 57.6% in 2015 and EBITDA Margin increased slightly on 1.7 pp from 4.9% to 6.6%
13-05-2015 • About Umang Dairies (
$UMANGDAIR) • By InTwits
Umang Dairies reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.6% in FY2015, 4.9% in FY2014, 10.2% in FY2013, 10.3% in FY2012, 5.1% in FY2011
- Umang Dairies has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: 80.7 in FY2015, 59.2 in FY2014, 76.1 in FY2013, 30.2 in FY2012, 12.2 in FY2011
- The company has highly profitable business model: ROIC is at 28.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Umang Dairies ($UMANGDAIR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,023 | 1,502 | 1,738 | 2,164 | 2,511 | 16.1% |
| EBITDA | 52 | 155 | 177 | 105 | 165 | 57.6% |
| Net Income | 33 | 138 | 123 | 60 | 85 | 42.9% |
Balance Sheet
|
|---|
| Cash | 15 | 4 | 5 | 8 | 5 | -32.2% |
| Short Term Debt | 36 | 62 | 65 | 158 | 149 | -5.4% |
| Long Term Debt | 71 | 41 | 20 | 27 | 36 | 32.8% |
Cash flow
|
|---|
| Capex | 12 | 30 | 76 | 59 | 81 | 36.4% |
Ratios
|
|---|
| Revenue growth | -65.0% | 46.8% | 15.7% | 24.5% | 16.1% | |
| EBITDA growth | -1,023.7% | 200.1% | 14.1% | -40.8% | 57.6% | |
| EBITDA Margin | 5.1% | 10.3% | 10.2% | 4.9% | 6.6% | 1.7% |
| Net Income Margin | 3.2% | 9.2% | 7.1% | 2.8% | 3.4% | 0.6% |
| CAPEX, % of revenue | 1.2% | 2.0% | 4.4% | 2.7% | 3.2% | 0.5% |
| ROIC | 54.8% | 93.5% | 55.6% | 22.3% | 28.4% | 6.2% |
| ROE | | | 96.4% | 30.4% | 35.2% | 4.9% |
| Net Debt/EBITDA | 1.8x | 0.6x | 0.5x | 1.7x | 1.1x | -0.6x |
Revenue and profitability
The company's Revenue jumped on 16.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in FY2015.
Net Income marign increased slightly on 0.64 pp from 2.8% to 3.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.2% in FY2015. CAPEX/Revenue increased slightly on 1.2 pp from 2.0% in FY2012 to 3.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at high and attractive ROIC (28.44%) and ROE (35.22%). ROIC increased on 6.2 pp from 22.3% to 28.4% in FY2015. ROE increased on 4.9 pp from 30.4% to 35.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.6x from 1.7x to 1.1x in FY2015. Debt showed almost no change in FY2015 while cash dropped on 32.2% in FY2015.
Valuation
The company's trades at EV/EBITDA 9.5x and P/E 16.3x while industy averages are 10.5x and 26.1x. Umang Dairies's EV/(EBITDA-CAPEX) is 18.5x with the industry average at 4.7x.
Appendix 1: Peers in Packaged Foods
Below we provide Umang Dairies benchmarking against other companies in Packaged Foods 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 |
|---|
| Krbl ($KRBL) | -2.2% | 5.6% | 27.6% | 39.9% | |
| Sunil Agro Foods ($SUNILAGR) | -34.2% | 1.6% | 38.3% | 29.1% | |
| Milkfood ($MLKFOOD) | -29.8% | -1.1% | 9.3% | 27.7% | |
| Simran Farms ($SIMRAN) | -69.5% | 38.4% | 23.8% | 27.5% | |
| Venky'S (India) ($VENKYS) | -61.1% | 18.0% | 46.0% | 24.8% | |
| |
|---|
| Median (15 companies) | -37.0% | 14.7% | 14.8% | 15.7% | 9.6% |
|---|
| Umang Dairies ($UMANGDAIR) | | 46.8% | 15.7% | 24.5% | 16.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.8% | 18.6% | 17.8% | 22.5% | 17.2% |
| Nestle India ($NESTLEIND) | 20.5% | 22.0% | 21.7% | 20.9% | |
| Krbl ($KRBL) | 14.7% | 14.1% | 14.2% | 15.1% | |
| Vadilal Industries ($VADILALIND) | 10.1% | 19.8% | 11.6% | 11.2% | |
| Britannia Industries ($BRITANNIA) | 5.2% | 5.7% | 6.9% | 9.2% | |
| |
|---|
| Median (12 companies) | 7.7% | 7.2% | 7.1% | 8.7% | 17.2% |
|---|
| Umang Dairies ($UMANGDAIR) | 5.1% | 10.3% | 10.2% | 4.9% | 6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 6.4% | 8.9% | 6.6% | 10.4% | |
| Krbl ($KRBL) | 5.8% | 4.1% | 4.0% | 6.1% | |
| Vadilal Industries ($VADILALIND) | 20.1% | 12.2% | 9.4% | 5.9% | |
| Adf Foods ($ADFFOODS) | 21.8% | 1.9% | 18.3% | 5.8% | |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 3.6% | 2.7% | | 4.3% | 2.5% |
| |
|---|
| Median (9 companies) | 3.6% | 4.1% | 3.9% | 4.3% | 2.5% |
|---|
| Umang Dairies ($UMANGDAIR) | 1.2% | 2.0% | 4.4% | 2.7% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Britannia Industries ($BRITANNIA) | 17.8% | 24.6% | 33.7% | 54.0% | |
| Nestle India ($NESTLEIND) | 85.4% | 57.7% | 47.9% | 49.6% | |
| Kse ($KSE) | 14.7% | 27.7% | 14.1% | 36.9% | |
| Heritage Foods ($HERITGFOOD) | 5.9% | 11.7% | 29.6% | 22.4% | |
| Krbl ($KRBL) | 14.4% | 11.7% | 14.5% | 18.3% | |
| |
|---|
| Median (19 companies) | 11.3% | 12.1% | 10.9% | 20.3% | 36.2% |
|---|
| Umang Dairies ($UMANGDAIR) | 54.8% | 93.5% | 55.6% | 22.3% | 28.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 0.9x | 2.6x | 2.8x | 6.7x | |
| Vadilal Industries ($VADILALIND) | 5.8x | 2.6x | 4.5x | 3.9x | |
| Bambino Agro Industries ($BAMBINO) | 3.1x | 3.2x | | 3.2x | |
| Krbl ($KRBL) | 3.7x | 4.1x | 2.9x | 3.0x | |
| Adf Foods ($ADFFOODS) | 1.5x | 1.6x | 1.7x | 1.2x | |
| |
|---|
| Median (12 companies) | 2.3x | 1.9x | 1.3x | 0.7x | -3.1x |
|---|
| Umang Dairies ($UMANGDAIR) | 1.8x | 0.6x | 0.5x | 1.7x | 1.1x |
