Prism Cement EBITDA surged on 72.9% in 2015 and Revenue jumped on 12.5%
14-05-2015 • About Prism Cement (
$PRISMCEM) • By InTwits
Prism Cement reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.3% in FY2015, 4.1% in FY2014, 6.9% in FY2013, 7.0% in FY2012, 11.4% in FY2011
- Prism Cement has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.1%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 1,799 in FY2015, 2,112 in FY2014, 3,427 in FY2013, 2,990 in FY2012, 4,916 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 6.0x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prism Cement ($PRISMCEM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34,156 | 45,498 | 47,723 | 50,266 | 56,544 | 12.5% |
| SG&A | | | | | 3,296 | |
| EBITDA | 3,886 | 3,198 | 3,283 | 2,056 | 3,554 | 72.9% |
| Net Income | 1,050 | -184 | -625 | -862 | 26 | |
Balance Sheet
|
|---|
| Cash | 693 | 748 | 533 | 524 | 1,002 | 91.3% |
| Short Term Debt | 5,342 | 5,323 | 7,731 | 6,566 | 5,980 | -8.9% |
| Long Term Debt | 8,415 | 10,631 | 12,480 | 14,478 | 16,385 | 13.2% |
Cash flow
|
|---|
| Capex | 4,916 | 2,990 | 3,427 | 2,112 | 1,799 | -14.8% |
Ratios
|
|---|
| Revenue growth | 18.8% | 33.2% | 4.9% | 5.3% | 12.5% | |
| EBITDA growth | -27.9% | -17.7% | 2.7% | -37.4% | 72.9% | |
| EBITDA Margin | 11.4% | 7.0% | 6.9% | 4.1% | 6.3% | 2.2% |
| Net Income Margin | 3.1% | -0.4% | -1.3% | -1.7% | 0.0% | 1.8% |
| SG&A, % of revenue | | | | | 5.8% | 5.8% |
| CAPEX, % of revenue | 14.4% | 6.6% | 7.2% | 4.2% | 3.2% | -1.0% |
| ROIC | 10.2% | 5.4% | 4.2% | -0.3% | 5.7% | 6.0% |
| ROE | 8.6% | -1.5% | -5.3% | -7.8% | 0.3% | 8.1% |
| Net Debt/EBITDA | 3.4x | 4.8x | 6.0x | 10.0x | 6.0x | -4.0x |
Revenue and profitability
Prism Cement's Revenue jumped on 12.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 16.4% to 15.3% in FY2015.
Net Income marign increased slightly on 1.8 pp from -1.7% to 0.046% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.2% in FY2015. The company showed decline in CAPEX/Revenue of 3.4 pp from 6.6% in FY2012 to 3.2% in FY2015. For the last three years the average CAPEX/Revenue was 4.9%.Prism Cement invested a big chunk of EBITDA (50.6%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (5.66%) and ROE (0.25%). ROIC increased on 6.0 pp from -0.31% to 5.7% in FY2015. ROE increased on 8.1 pp from -7.8% to 0.25% in FY2015.
Leverage (Debt)
Debt level is 6.0x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA dropped on 4.0x from 10.0x to 6.0x in FY2015. Debt increased on 6.3% in FY2015 while cash jumped on 91.3% in FY2015.
Appendix 1: Peers in Cement & Cement Products
Below you can find Prism Cement benchmarking vs. other companies in Cement & Cement Products 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 |
|---|
| Heidelbergcement India ($HEIDELBERG) | -50.1% | -13.1% | 37.5% | 36.3% | |
| Shree Digvijay Cement Co ($SHREDIGCEM) | -23.4% | 14.9% | -13.5% | 24.7% | |
| Indian Hume Pipe Co ($INDIANHUME) | -43.1% | -20.3% | 34.5% | 18.3% | |
| Birla Corporation ($BIRLACORPN) | | 6.2% | 13.8% | 15.9% | 6.4% |
| Ambuja Cements ($AMBUJACEM) | -23.0% | 14.3% | -6.5% | 9.0% | |
| |
|---|
| Median (15 companies) | -40.8% | 14.7% | 11.7% | -1.4% | 6.4% |
|---|
| Prism Cement ($PRISMCEM) | | 33.2% | 4.9% | 5.3% | 12.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambuja Cements ($AMBUJACEM) | 23.4% | 25.6% | 18.2% | 19.4% | |
| Heidelbergcement India ($HEIDELBERG) | 6.9% | 8.3% | 9.3% | 15.9% | |
| Deccan Cements ($DECCANCE) | 19.2% | 22.8% | 13.2% | 14.7% | |
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | |
| J.K.Cement ($JKCEMENT) | 13.3% | 20.3% | 19.2% | 12.7% | |
| |
|---|
| Median (14 companies) | 13.3% | 19.2% | 13.6% | 11.8% | 9.6% |
|---|
| Prism Cement ($PRISMCEM) | 11.4% | 7.0% | 6.9% | 4.1% | 6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| J.K.Cement ($JKCEMENT) | 14.1% | 6.5% | 18.8% | 55.8% | |
| Acc ($ACC) | 4.8% | 5.0% | 8.6% | 13.7% | |
| K.C.P ($KCP) | 28.2% | 8.6% | 9.9% | 12.6% | |
| Visaka Industries ($VIKASAS) | 4.6% | 5.5% | 6.5% | 10.2% | 2.2% |
| Shree Digvijay Cement Co ($SHREDIGCEM) | 13.6% | 4.1% | 8.5% | 8.5% | |
| |
|---|
| Median (11 companies) | 7.7% | 5.5% | 7.8% | 8.3% | 4.9% |
|---|
| Prism Cement ($PRISMCEM) | 14.4% | 6.6% | 7.2% | 4.2% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | |
| Saurashtra Cement ($SAURASHCEM) | 4.3% | 38.6% | 42.7% | 13.9% | 26.9% |
| Ambuja Cements ($AMBUJACEM) | 17.0% | 19.4% | 11.2% | 13.0% | |
| Acc ($ACC) | 18.5% | 20.2% | 12.7% | 11.0% | |
| K.C.P ($KCP) | 14.9% | 17.6% | 6.7% | 7.1% | |
| |
|---|
| Median (16 companies) | 7.6% | 15.8% | 9.8% | 6.4% | 8.3% |
|---|
| Prism Cement ($PRISMCEM) | 10.2% | 5.4% | 4.2% | -0.3% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| J.K.Cement ($JKCEMENT) | 4.5x | 2.3x | 2.3x | 6.9x | |
| India Cements ($INDIACEM) | 4.8x | 3.2x | 3.5x | 5.5x | |
| Visaka Industries ($VIKASAS) | 1.3x | 1.3x | 2.2x | 3.8x | 2.7x |
| K.C.P ($KCP) | 2.6x | 1.1x | 3.0x | 3.6x | |
| Deccan Cements ($DECCANCE) | 4.1x | 1.7x | 3.3x | 3.4x | |
| |
|---|
| Median (13 companies) | 2.4x | 1.8x | 2.6x | 3.0x | 2.7x |
|---|
| Prism Cement ($PRISMCEM) | 3.4x | 4.8x | 6.0x | 10.0x | 6.0x |
