J.B.Chemicals & Pharmaceuticals reports 63.3% Net Income growth and 14.3% Revenue growth
20-05-2015 • About J.B.Chemicals & Pharmaceuticals (
$JBCHEPHARM) • By InTwits
J.B.Chemicals & Pharmaceuticals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- J.B.Chemicals & Pharmaceuticals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 503 in FY2015, 1,802 in FY2014, 1,460 in FY2013, 156 in FY2012, 169 in FY2011
- The company has highly profitable business model: ROIC is at 12.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,908 | 8,019 | 8,458 | 10,006 | 11,442 | 14.3% |
| EBITDA | 1,941 | 1,295 | 1,150 | 1,546 | 1,801 | 16.5% |
| Net Income | 1,393 | 6,779 | 794 | 615 | 1,004 | 63.3% |
Balance Sheet
|
|---|
| Cash | 491 | 1,837 | 1,529 | 118 | 232 | 96.2% |
| Short Term Debt | 1,565 | 585 | 425 | 927 | 1,270 | 36.9% |
| Long Term Debt | 125 | 125 | 72 | 5 | 4 | -18.1% |
Cash flow
|
|---|
| Capex | 344 | 801 | 492 | 604 | 712 | 17.9% |
Ratios
|
|---|
| Revenue growth | -33.8% | -10.0% | 5.5% | 18.3% | 14.3% | |
| EBITDA growth | 16.8% | -33.3% | -11.2% | 34.5% | 16.5% | |
| EBITDA Margin | 21.8% | 16.1% | 13.6% | 15.5% | 15.7% | 0.3% |
| Net Income Margin | 15.6% | 84.5% | 9.4% | 6.1% | 8.8% | 2.6% |
| CAPEX, % of revenue | 3.9% | 10.0% | 5.8% | 6.0% | 6.2% | 0.2% |
| ROIC | 21.4% | 11.1% | 8.4% | 11.2% | 12.3% | 1.1% |
| ROE | 22.1% | 81.6% | 8.0% | 6.0% | 9.9% | 3.9% |
| Net Debt/EBITDA | 0.6x | -0.9x | -0.9x | 0.5x | 0.6x | 0.1x |
Revenue and profitability
J.B.Chemicals & Pharmaceuticals's Revenue jumped on 14.3% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased on 2.6 pp from 6.1% to 8.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.2% in FY2015. CAPEX/Revenue decreased on 3.8 pp from 10.0% in FY2012 to 6.2% in FY2015. Average CAPEX/Revenue for the last three years was 6.0%.
Return on investment
The company operates at good ROIC (12.27%) while ROE is low (9.85%). ROIC increased slightly on 1.1 pp from 11.2% to 12.3% in FY2015. ROE increased on 3.9 pp from 6.0% to 9.9% in FY2015.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 0.5x to 0.6x in FY2015. Debt jumped on 36.7% in FY2015 while cash surged on 96.2% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find J.B.Chemicals & Pharmaceuticals 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 ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -46.4% | 16.7% | 14.9% | 12.6% | 8.6% |
|---|
| J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) | | -10.0% | 5.5% | 18.3% | 14.3% |
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 ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 15.2% |
|---|
| J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) | 21.8% | 16.1% | 13.6% | 15.5% | 15.7% |
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 ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| |
|---|
| Median (28 companies) | 7.4% | 7.7% | 8.3% | 5.7% | 6.2% |
|---|
| J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) | 3.9% | 10.0% | 5.8% | 6.0% | 6.2% |
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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | |
| |
|---|
| Median (63 companies) | 13.5% | 14.0% | 13.8% | 15.6% | 14.9% |
|---|
| J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) | 21.4% | 11.1% | 8.4% | 11.2% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ind-Swift Laboratories ($INDSWFTLAB) | 4.6x | 5.5x | 16.1x | 19.5x | 0.0x |
| Shasun Pharmaceuticals ($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 ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.6x | 1.6x | 1.4x | 0.3x | 1.3x |
|---|
| J.B.Chemicals & Pharmaceuticals ($JBCHEPHARM) | 0.6x | -0.9x | -0.9x | 0.5x | 0.6x |
