Torrent Cables revenue returned to growth in FY2015: increased 26.5% vs. 42.9% decline a year earliner
21-05-2015 • About Torrent Cables (
$TORRCABS) • By InTwits
Torrent Cables reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 3.0% in FY2015, 3.7% in FY2014, 9.0% in FY2013, 11.3% in FY2012, 6.2% in FY2011.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Torrent Cables ($TORRCABS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,511 | 3,203 | 3,761 | 2,147 | 2,716 | 26.5% |
| EBITDA | 156 | 361 | 339 | 78 | 81 | 2.7% |
| Net Income | 69 | 193 | 179 | 43 | 34 | -22.0% |
Balance Sheet
|
|---|
| Cash | 13 | 2 | 2 | 240 | 7 | -97.0% |
| Short Term Debt | 18 | 73 | 4 | 54 | 2 | -96.1% |
| Long Term Debt | 89 | 0 | 0 | | 0 | |
Cash flow
|
|---|
| Capex | 40 | 52 | 22 | | 11 | |
Ratios
|
|---|
| Revenue growth | -23.0% | 27.5% | 17.4% | -42.9% | 26.5% | |
| EBITDA growth | 78.8% | 131.4% | -5.9% | -76.9% | 2.7% | |
| EBITDA Margin | 6.2% | 11.3% | 9.0% | 3.7% | 3.0% | -0.7% |
| Net Income Margin | 2.7% | 6.0% | 4.8% | 2.0% | 1.2% | -0.8% |
| CAPEX, % of revenue | 1.6% | 1.6% | 0.6% | | 0.4% | 0.4% |
| ROIC | 5.4% | 18.4% | 15.7% | | | 0.0% |
| ROE | 5.2% | 13.5% | 11.3% | 2.6% | 2.0% | -0.6% |
| Net Debt/EBITDA | 0.6x | 0.2x | 0.0x | -2.4x | -0.1x | 2.3x |
Revenue and profitability
The company's Revenue surged on 26.5% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.69 pp from 3.7% to 3.0% in FY2015.
Net Income marign decreased slightly on 0.77 pp from 2.0% to 1.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.40%. The company's CAPEX/Revenue decreased slightly on 1.2 pp from 1.6% in FY2012 to 0.40% in FY2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.3x from -2.4x to -0.1x in FY2015. Debt dropped on 96.1% in FY2015 while cash dropped on 97.0% in FY2015.
Valuation
Torrent Cables's trades at EV/EBITDA 14.4x and P/E 34.5x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Pharmaceuticals
Below we provide Torrent Cables benchmarking against other companies in Pharmaceuticals 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 |
|---|
| 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 ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -47.3% | 16.6% | 14.7% | 13.7% | 9.2% |
|---|
| Torrent Cables ($TORRCABS) | | 27.5% | 17.4% | -42.9% | 26.5% |
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 ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.5% | 12.9% | 13.4% | 15.0% | 15.7% |
|---|
| Torrent Cables ($TORRCABS) | 6.2% | 11.3% | 9.0% | 3.7% | 3.0% |
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 ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| |
|---|
| Median (29 companies) | 7.4% | 8.2% | 8.3% | 5.8% | 6.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alembic Pharmaceuticals ($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% | 35.3% |
| |
|---|
| Median (63 companies) | 14.0% | 13.7% | 13.2% | 15.0% | 15.4% |
|---|
| Torrent Cables ($TORRCABS) | 5.4% | 18.4% | 15.7% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ind-Swift Laboratories ($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 | 0.5x | 1.1x |
|---|
| Torrent Cables ($TORRCABS) | 0.6x | 0.2x | 0.0x | -2.4x | -0.1x |
