Manaksia reports 45.9% Net Income decline and 32.8% Revenue decline
15-05-2015 • About Manaksia (
$MANAKSIA) • By InTwits
Manaksia reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Manaksia is a company in decline: FY2015 revenue growth was -32.8%, 5 years revenue CAGR was -3.5%
- Manaksia has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 738 in FY2015, 787 in FY2014, 1,019 in FY2013, 1,750 in FY2012, 1,288 in FY2011
- The company has business model with average profitability: ROIC is at 11.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Manaksia ($MANAKSIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,333 | 19,438 | 21,091 | 16,791 | 11,276 | -32.8% |
| EBITDA | 2,363 | 2,801 | 3,669 | 3,404 | 2,099 | -38.3% |
| Net Income | 1,127 | 1,190 | 1,702 | 1,913 | 1,034 | -45.9% |
Balance Sheet
|
|---|
| Cash | 445 | 307 | 347 | 341 | 227 | -33.3% |
| Short Term Debt | 2,730 | 2,282 | 3,590 | 742 | 1,810 | 143.8% |
| Long Term Debt | 1,794 | 1,700 | 1,303 | 690 | 388 | -43.8% |
Cash flow
|
|---|
| Capex | 1,288 | 1,750 | 1,019 | 787 | 738 | -6.2% |
Ratios
|
|---|
| Revenue growth | 6.6% | 35.6% | 8.5% | -20.4% | -32.8% | |
| EBITDA growth | -8.5% | 18.6% | 31.0% | -7.2% | -38.3% | |
| EBITDA Margin | 16.5% | 14.4% | 17.4% | 20.3% | 18.6% | -1.7% |
| Net Income Margin | 7.9% | 6.1% | 8.1% | 11.4% | 9.2% | -2.2% |
| CAPEX, % of revenue | 9.0% | 9.0% | 4.8% | 4.7% | 6.5% | 1.9% |
| ROIC | 12.7% | 12.9% | 15.5% | 16.0% | 11.4% | -4.6% |
| ROE | 11.7% | 11.4% | 14.4% | 16.2% | 9.5% | -6.7% |
| Net Debt/EBITDA | 1.7x | 1.3x | 1.2x | 0.3x | 0.9x | 0.6x |
Revenue and profitability
Manaksia's Revenue dropped on 32.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 20.3% to 18.6% in FY2015.
Net Income marign decreased on 2.2 pp from 11.4% to 9.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.5% in FY2015. Manaksia's CAPEX/Revenue decreased on 2.5 pp from 9.0% in FY2012 to 6.5% in FY2015. For the last three years the average CAPEX/Revenue was 5.4%.
Return on investment
The company operates at low ROIC (11.45%) and ROE (9.48%). ROIC decreased on 4.6 pp from 16.0% to 11.4% in FY2015. ROE decreased on 6.7 pp from 16.2% to 9.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.6x from 0.3x to 0.9x in FY2015. Debt jumped on 53.5% in FY2015 while cash dropped on 33.3% in FY2015.
Valuation
Manaksia's trades at EV/EBITDA 2.5x and P/E 3.1x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 3.8x with the industry average at 4.7x.
Appendix 1: Peers in Containers & Packaging
Below we provide Manaksia benchmarking against other companies in Containers & Packaging 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 |
|---|
| Neo Corp International ($NEOCORP) | -63.2% | 36.7% | 45.2% | 56.4% | |
| Gopala Polyplast ($GOPALA) | -42.9% | -1.7% | 17.0% | 29.6% | |
| Shree Rama Multi-Tech ($SHREERAMA) | -18.3% | -25.0% | 18.2% | 23.3% | |
| Shri Jagdamba Polymers ($SHRJAGP) | -66.8% | 35.5% | 38.3% | 21.7% | |
| Time Technoplast ($TIMETECHNO) | -58.8% | 19.8% | 17.6% | 21.6% | |
| |
|---|
| Median (19 companies) | -47.6% | 14.8% | 16.9% | 14.1% | 9.2% |
|---|
| Manaksia ($MANAKSIA) | | 35.6% | 8.5% | -20.4% | -32.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | 13.9% | 19.2% | 22.5% | |
| Essel Propack ($ESSELPRO) | 17.8% | 17.0% | 17.4% | 16.9% | 17.2% |
| Piramal Glass ($PIRAMGLAS) | 24.4% | 23.7% | 18.9% | 15.5% | |
| Kg Petrochem ($KGPETRO) | 11.6% | 16.0% | 12.8% | 14.7% | |
| Time Technoplast ($TIMETECHNO) | 18.5% | 15.9% | 16.2% | 14.1% | |
| |
|---|
| Median (14 companies) | 11.5% | 12.9% | 10.6% | 11.4% | 11.5% |
|---|
| Manaksia ($MANAKSIA) | 16.5% | 14.4% | 17.4% | 20.3% | 18.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Essel Propack ($ESSELPRO) | 7.9% | 10.0% | 6.7% | 8.5% | 9.4% |
| Piramal Glass ($PIRAMGLAS) | 12.6% | 20.7% | 6.0% | 7.7% | |
| Control Print ($CONTROLPR) | | 3.0% | 5.0% | 7.5% | |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 21.7% | 75.5% | 25.0% | 6.7% | |
| Time Technoplast ($TIMETECHNO) | 18.5% | 17.9% | 11.1% | 6.2% | |
| |
|---|
| Median (6 companies) | 12.5% | 8.6% | 8.9% | 7.1% | 9.4% |
|---|
| Manaksia ($MANAKSIA) | 9.0% | 9.0% | 4.8% | 4.7% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | | 19.7% | 22.2% | |
| Neo Corp International ($NEOCORP) | 17.4% | 14.9% | 13.7% | 15.7% | |
| Kg Petrochem ($KGPETRO) | 5.0% | 10.8% | 10.1% | 14.3% | |
| Hitech Plast ($HITECHPLAS) | 18.1% | 13.8% | 12.6% | 14.0% | |
| Essel Propack ($ESSELPRO) | | 8.6% | 9.9% | 12.5% | 14.7% |
| |
|---|
| Median (32 companies) | 8.4% | 9.1% | 9.9% | 11.2% | 14.7% |
|---|
| Manaksia ($MANAKSIA) | 12.7% | 12.9% | 15.5% | 16.0% | 11.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Union Quality Plastics ($UNQTYMI) | | | 14.9x | 12.9x | 0.0x |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 2.1x | 7.4x | 15.8x | 11.2x | |
| Piramal Glass ($PIRAMGLAS) | 3.0x | 3.1x | 4.1x | 4.3x | |
| Kg Petrochem ($KGPETRO) | 6.2x | 3.3x | 3.6x | 3.4x | |
| Uflex ($UFLEX) | 1.0x | 2.7x | 3.0x | 3.2x | |
| |
|---|
| Median (18 companies) | 3.2x | 3.2x | 3.5x | 2.0x | 1.1x |
|---|
| Manaksia ($MANAKSIA) | 1.7x | 1.3x | 1.2x | 0.3x | 0.9x |
