Rupa & Company reports 7.5% revenue growth in FY2015 and 0.75 pp EBITDA Margin decline from 15.3% to 14.5%
21-05-2015 • About Rupa & Company (
$RUPA) • By InTwits
Rupa & Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rupa & Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 217 in FY2015, 156 in FY2014, 323 in FY2013, 138 in FY2012, 292 in FY2011
- The company has highly profitable business model: ROIC is at 23.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rupa & Company ($RUPA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,500 | 7,110 | 8,290 | 9,044 | 9,726 | 7.5% |
| EBITDA | 696 | 904 | 1,245 | 1,382 | 1,414 | 2.3% |
| Net Income | 337 | 436 | 648 | 661 | 682 | 3.2% |
Balance Sheet
|
|---|
| Cash | 71 | 40 | 53 | 40 | 68 | 68.0% |
| Short Term Debt | 1,297 | 1,603 | 2,025 | 1,878 | 2,001 | 6.6% |
| Long Term Debt | 543 | 160 | 152 | 104 | 75 | -27.9% |
Cash flow
|
|---|
| Capex | 292 | 138 | 323 | 156 | 217 | 38.5% |
Ratios
|
|---|
| Revenue growth | -41.7% | 9.4% | 16.6% | 9.1% | 7.5% | |
| EBITDA growth | 58.9% | 29.9% | 37.7% | 11.0% | 2.3% | |
| EBITDA Margin | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% | -0.7% |
| Net Income Margin | 5.2% | 6.1% | 7.8% | 7.3% | 7.0% | -0.3% |
| CAPEX, % of revenue | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% | 0.5% |
| ROIC | 20.2% | 22.4% | 27.1% | 25.8% | 23.8% | -2.0% |
| ROE | 21.7% | 23.9% | 29.4% | 24.9% | 22.2% | -2.7% |
| Net Debt/EBITDA | 2.5x | 1.9x | 1.7x | 1.4x | 1.4x | 0.0x |
Revenue and profitability
The company's Revenue increased on 7.5% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.75 pp from 15.3% to 14.5% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Rupa & Company's CAPEX/Revenue was 2.2% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at high and attractive ROIC (23.79%) and ROE (22.20%). ROIC decreased on 2.0 pp from 25.8% to 23.8% in FY2015. ROE decreased on 2.7 pp from 24.9% to 22.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.5x. Net Debt / EBITDA increased slightly on 0.016x from 1.4x to 1.4x in FY2015. Debt increased on 4.8% in FY2015 while cash surged on 68.0% in FY2015.
Valuation
Rupa & Company's trades at EV/EBITDA 14.0x and P/E 26.2x while industy averages are 10.5x and 26.1x. Rupa & Company's EV/(EBITDA-CAPEX) is 16.6x with the industry average at 4.7x.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Rupa & Company benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Page Industries ($PAGEIND) | -73.3% | 39.0% | 26.3% | 37.5% | |
| Bhartiya International ($BIL) | -71.6% | 28.4% | 20.9% | 36.7% | |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -16.8% | 10.4% | 19.5% | 15.3% | 6.4% |
|---|
| Rupa & Company ($RUPA) | | 9.4% | 16.6% | 9.1% | 7.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 11.0% | 9.3% | 8.8% | 10.8% | |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | 13.7% |
| Tara Jewels ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| Bhartiya International ($BIL) | 10.6% | 11.4% | 9.2% | 8.9% | |
| |
|---|
| Median (18 companies) | 7.9% | 7.5% | 5.5% | 5.4% | 4.5% |
|---|
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | |
| Thangamayil Jewellery ($THANGAMAYL) | 1.9% | 3.5% | 1.2% | 1.4% | |
| |
|---|
| Median (14 companies) | 1.9% | 1.5% | 1.3% | 1.1% | 0.7% |
|---|
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | |
| Oscar Global ($OSCARGLO) | | | 12.6% | 52.3% | |
| Virat Industries ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | 39.9% |
| Tara Jewels ($TARAJEWELS) | 14.8% | 17.5% | 18.6% | 15.1% | |
| |
|---|
| Median (40 companies) | 8.8% | 9.3% | 7.2% | 10.9% | 8.2% |
|---|
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | 23.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (24 companies) | 2.7x | 2.3x | 2.9x | 0.0x | 0.2x |
|---|
| Rupa & Company ($RUPA) | 2.5x | 1.9x | 1.7x | 1.4x | 1.4x |
