Cadila Healthcare EBITDA jumped on 50.1% in 2015 and Revenue surged on 20.4%
15-05-2015 • About Cadila Healthcare (
$CADILAHC) • By InTwits
Cadila Healthcare reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cadila Healthcare is a fast growth stock: FY2015 revenue growth was 20.4%, 5 year revenue CAGR was 18.9% at FY2015 ROIC 21.8%
- Cadila Healthcare has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.1%. At the same time it's a lot of higher than industry average of 6.7%.
- CAPEX is quite volatile: 5,125 in FY2015, 4,840 in FY2014, 7,243 in FY2013, 12,536 in FY2012, 5,021 in FY2011
- The company has highly profitable business model: ROIC is at 21.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cadila Healthcare ($CADILAHC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 44,647 | 50,900 | 61,552 | 70,600 | 84,971 | 20.4% |
| EBITDA | 10,163 | 10,987 | 10,784 | 11,795 | 17,700 | 50.1% |
| Net Income | 7,110 | 6,526 | 6,535 | 8,036 | 11,485 | 42.9% |
Balance Sheet
|
|---|
| Cash | 2,952 | 4,666 | 5,838 | 5,488 | 6,699 | 22.1% |
| Short Term Debt | 3,345 | 9,728 | 14,976 | 13,382 | 15,009 | 12.2% |
| Long Term Debt | 7,629 | 13,223 | 14,260 | 13,622 | 11,504 | -15.5% |
Cash flow
|
|---|
| Capex | 5,021 | 12,536 | 7,243 | 4,840 | 5,125 | 5.9% |
Ratios
|
|---|
| Revenue growth | 24.9% | 14.0% | 20.9% | 14.7% | 20.4% | |
| EBITDA growth | 21.1% | 8.1% | -1.8% | 9.4% | 50.1% | |
| EBITDA Margin | 22.8% | 21.6% | 17.5% | 16.7% | 20.8% | 4.1% |
| Net Income Margin | 15.9% | 12.8% | 10.6% | 11.4% | 13.5% | 2.1% |
| CAPEX, % of revenue | 11.2% | 24.6% | 11.8% | 6.9% | 6.0% | -0.8% |
| ROIC | 27.8% | 21.9% | 15.9% | 15.6% | 21.8% | 6.2% |
| ROE | 37.4% | 27.4% | 23.6% | 25.2% | 29.9% | 4.7% |
| Net Debt/EBITDA | 0.8x | 1.7x | 2.2x | 1.8x | 1.1x | -0.7x |
Revenue and profitability
The company's Revenue jumped on 20.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from 8.1% to 10.0% in FY2015.
Net Income marign increased on 2.1 pp from 11.4% to 13.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Cadila Healthcare had CAPEX/Revenue of 6.0%. CAPEX/Revenue dropped on 18.6 pp from 24.6% in FY2012 to 6.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.2%.
Return on investment
The company operates at high and attractive ROIC (21.84%) and ROE (29.92%). ROIC increased on 6.2 pp from 15.6% to 21.8% in FY2015. ROE increased on 4.7 pp from 25.2% to 29.9% in FY2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 1.8x to 1.1x in FY2015. Debt decreased slightly on 1.8% in FY2015 while cash jumped on 22.1% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Cadila Healthcare 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) | | 22.7% | 17.7% | 32.2% | 13.6% |
| Abbott India ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -45.0% | 16.7% | 14.7% | 12.6% | 8.6% |
|---|
| Cadila Healthcare ($CADILAHC) | | 14.0% | 20.9% | 14.7% | 20.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | | | 52.1% | 57.4% | 57.6% |
| Omega Laboratories ($OMEGALAB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | | 46.9% | 26.1% | 28.7% | 28.8% |
|---|
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% | 23.2% |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 14.3% |
|---|
| Cadila Healthcare ($CADILAHC) | 22.8% | 21.6% | 17.5% | 16.7% | 20.8% |
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 ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| |
|---|
| Median (28 companies) | 7.3% | 7.7% | 7.5% | 5.7% | 6.4% |
|---|
| Cadila Healthcare ($CADILAHC) | 11.2% | 24.6% | 11.8% | 6.9% | 6.0% |
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% | 19.7% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | |
| |
|---|
| Median (63 companies) | 13.5% | 13.7% | 13.2% | 14.4% | 10.8% |
|---|
| Cadila Healthcare ($CADILAHC) | 27.8% | 21.9% | 15.9% | 15.6% | 21.8% |
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 | 6.4x |
| Kopran ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.6x | 1.4x | 1.2x | 0.3x | 2.1x |
|---|
| Cadila Healthcare ($CADILAHC) | 0.8x | 1.7x | 2.2x | 1.8x | 1.1x |
