Pidilite Industries reports 116% CAPEX growth and 13.1% Revenue growth

19-05-2015 • About Pidilite Industries ($PIDILITIND) • By InTwits

Pidilite Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

• Pidilite Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's in pair with industry average of 5.0%.
• CAPEX is quite volatile: 4,099 in FY2015, 1,895 in FY2014, 1,081 in FY2013, 1,630 in FY2012, 1,275 in FY2011
• The company has highly profitable business model: ROIC is at 29.0%

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Pidilite Industries ($PIDILITIND) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	26,439	31,097	36,781	42,832	48,441	13.1%
SG&A					1,915
EBITDA	4,754	4,997	5,935	6,718	7,722	15.0%
Net Income	3,100	3,244	4,240	4,498	5,126	14.0%
Balance Sheet
Cash	834	768	1,495	1,760	748	-57.5%
Short Term Debt	751	2,290	1,112	459	579	26.1%
Long Term Debt	2,609	923	0	0	5
Cash flow
Capex	1,275	1,630	1,081	1,895	4,099	116.3%
Ratios
Revenue growth	-54.6%	17.6%	18.3%	16.5%	13.1%
EBITDA growth	18.7%	5.1%	18.8%	13.2%	15.0%
EBITDA Margin	18.0%	16.1%	16.1%	15.7%	15.9%	0.3%
Net Income Margin	11.7%	10.4%	11.5%	10.5%	10.6%	0.1%
SG&A, % of revenue					4.0%	4.0%
CAPEX, % of revenue	4.8%	5.2%	2.9%	4.4%	8.5%	4.0%
ROIC	29.3%	27.4%	29.3%	29.8%	29.0%	-0.8%
ROE	31.7%	27.0%	28.5%	25.0%	24.3%	-0.7%
Net Debt/EBITDA	0.5x	0.5x	-0.1x	-0.2x	-0.0x	0.2x

Revenue and profitability

The company's Revenue jumped on 13.1% in FY2015. EBITDA Margin showed almost no change in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

Pidilite Industries's CAPEX/Revenue was 8.5% in FY2015. CAPEX/Revenue increased on 3.2 pp from 5.2% in FY2012 to 8.5% in FY2015. It's average CAPEX/Revenue for the last three years was 5.3%.The company invested a big chunk of EBITDA (53.1%) to CAPEX to secure its growth.

Return on investment

The company operates at high and attractive ROIC (29.00%) and ROE (24.27%). ROIC decreased slightly on 0.81 pp from 29.8% to 29.0% in FY2015. ROE decreased slightly on 0.69 pp from 25.0% to 24.3% in FY2015.

Leverage (Debt)

Debt level is -0.0x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from -0.2x to -0.021x in FY2015. Debt surged on 27.2% in FY2015 while cash dropped on 57.5% in FY2015.

Appendix 1: Peers in Specialty Chemicals

Below we provide Pidilite Industries benchmarking against other companies in Specialty Chemicals 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
Dai-Ichi Karkaria ($DAICHI)		20.7%	31.4%	45.4%	22.8%
Dynemic Products ($DYNPRO)	-55.8%	27.4%	-0.0%	40.6%
Camlin Fine Sciences ($CAMLINFIN)		95.3%	11.4%	36.1%	9.8%
Sudarshan Chemical Industries ($SUDARSCHEM)	-49.4%	10.5%	9.1%	28.2%
Vinati Organics ($VINATIORGA)		38.7%	23.6%	25.9%	10.9%
Median (27 companies)	-49.4%	20.9%	11.4%	11.3%	10.3%
Pidilite Industries ($PIDILITIND)		17.6%	18.3%	16.5%	13.1%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Vinati Organics ($VINATIORGA)	21.7%	21.7%	21.8%	22.7%	24.9%
Adi Finechem ($ADIFINCHM)	18.2%	15.1%	14.0%	22.1%	16.5%
Solar Industries India ($SOLARINDS)	18.1%	18.5%	17.5%	17.9%
Ultramarine & Pigments ($ULTRAMAR)	20.1%	18.0%	15.5%	17.4%
Anil ($ANILLTD)	17.4%	18.1%	16.9%	17.1%
Median (25 companies)	11.2%	10.6%	11.2%	10.6%	13.0%
Pidilite Industries ($PIDILITIND)	18.0%	16.1%	16.1%	15.7%	15.9%

Top companies by CAPEX/Revenue, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Adi Finechem ($ADIFINCHM)	8.2%	7.3%	4.8%	12.6%	16.9%
Solar Industries India ($SOLARINDS)	14.2%	13.0%	9.9%	12.3%
Nitta Gelatin India ($NITTAGELA)	21.3%	8.8%	4.6%	8.5%
Meghmani Organics ($MEGH)	9.9%	10.2%	10.3%	7.9%
Camlin Fine Sciences ($CAMLINFIN)	7.5%	4.3%	5.7%	7.1%	5.1%
Median (18 companies)	7.3%	4.9%	4.7%	4.4%	3.3%
Pidilite Industries ($PIDILITIND)	4.8%	5.2%	2.9%	4.4%	8.5%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Adi Finechem ($ADIFINCHM)	27.6%	30.6%	29.8%	46.4%	26.3%
Vinati Organics ($VINATIORGA)	31.4%	29.6%	26.2%	30.6%	34.8%
Camlin Fine Sciences ($CAMLINFIN)	9.9%	11.1%	17.8%	24.2%	29.5%
Plastiblends India ($PLASTIBLEN)	19.4%	18.3%	15.8%	24.0%
Keltech Energies ($KELENRG)	11.5%	15.3%	12.8%	23.0%
Median (35 companies)	14.8%	14.7%	14.8%	11.2%	26.3%
Pidilite Industries ($PIDILITIND)	29.3%	27.4%	29.3%	29.8%	29.0%

Top companies by Net Debt / EBITDA

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Cochin Minerals & Rutile ($COCHINM)	0.7x	-0.0x	-0.0x	32.3x
Alkali Metals ($ALKALI)	4.3x		5.1x	11.6x	0.0x
Kiri Industries ($KIRIINDUS)	3.9x	8.2x	31.3x	10.6x
Vikas Globalone ($VIKASGLOB)	0.0x	2.5x	4.4x	4.9x
Jayant Agro-Organics ($JAYAGROGN)	3.9x	2.8x	3.1x	4.6x	6.5x
Median (28 companies)	1.5x	1.5x	1.7x	1.7x	0.2x
Pidilite Industries ($PIDILITIND)	0.5x	0.5x	-0.1x	-0.2x	-0.0x

Similar news

19-05-2015 Entertainment Network (India) Net Income jumped on 26.7% in 2015 and EBITDA Margin increased slightly on 0.84 pp from 32.4% to 33.3%

19-05-2015 K.C.P reports 53.8% CAPEX decline while 12.4% Revenue growth

19-05-2015 Tata Power Co CAPEX dropped on 19.4% in 2015 and Revenue decreased on 6.0%

19-05-2015 Cheviot Co Net Income jumped on 29.0% in 2015 while EBITDA Margin decreased on 3.4 pp from 13.5% to 10.1%

19-05-2015 Colgate-Palmolive (India) reports 23.3% EBITDA growth and 2.0 pp EBITDA Margin growth from 18.6% to 20.7%