Ttk Healthcare CAPEX jumped on 219% in 2015 and Revenue surged on 16.2%
21-05-2015 • About Ttk Healthcare (
$TTKHEALTH) • By InTwits
Ttk Healthcare reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ttk Healthcare has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 9.4%.
- CAPEX is quite volatile: 492 in FY2015, 154 in FY2014, 76.6 in FY2013, 44.0 in FY2012, 92.4 in FY2011
- The company has highly profitable business model: ROIC is at 15.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ttk Healthcare ($TTKHEALTH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,109 | 3,537 | 3,823 | 4,156 | 4,829 | 16.2% |
| EBITDA | 220 | 243 | 206 | 201 | 302 | 50.4% |
| Net Income | 147 | 156 | 142 | 124 | 162 | 30.4% |
Balance Sheet
|
|---|
| Cash | 123 | 121 | 124 | 138 | 203 | 47.0% |
| Short Term Debt | 127 | 178 | 218 | 152 | 253 | 66.0% |
| Long Term Debt | 6 | 5 | 6 | 159 | 160 | 0.7% |
Cash flow
|
|---|
| Capex | 92 | 44 | 77 | 154 | 492 | 218.6% |
Ratios
|
|---|
| Revenue growth | -45.0% | 13.8% | 8.1% | 8.7% | 16.2% | |
| EBITDA growth | 40.6% | 10.5% | -15.2% | -2.5% | 50.4% | |
| EBITDA Margin | 7.1% | 6.9% | 5.4% | 4.8% | 6.3% | 1.4% |
| Net Income Margin | 4.7% | 4.4% | 3.7% | 3.0% | 3.3% | 0.4% |
| CAPEX, % of revenue | 3.0% | 1.2% | 2.0% | 3.7% | 10.2% | 6.5% |
| ROIC | 19.9% | 19.7% | 15.5% | 12.8% | 15.9% | 3.1% |
| ROE | 21.0% | 19.1% | 15.3% | 12.1% | 14.3% | 2.3% |
| Net Debt/EBITDA | 0.0x | 0.3x | 0.5x | 0.9x | 0.7x | -0.2x |
Revenue and profitability
Ttk Healthcare's Revenue surged on 16.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 4.8% to 6.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.2% in FY2015. The company showed CAPEX/Revenue growth of 8.9 pp from 1.2% in FY2012 to 10.2% in FY2015. For the last three years the average CAPEX/Revenue was 5.3%.To fuel this fast growth the company made large investments to CAPEX (163% of EBITDA).
Return on investment
The company operates at good ROIC (15.92%) and ROE (14.35%). ROIC increased on 3.1 pp from 12.8% to 15.9% in FY2015. ROE increased on 2.3 pp from 12.1% to 14.3% in FY2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.9x to 0.7x in FY2015. Debt jumped on 32.7% in FY2015 while cash jumped on 47.0% in FY2015.
Valuation
The company's trades at EV/EBITDA 27.0x and P/E 49.3x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Pharmaceuticals
Below you can find Ttk Healthcare 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 ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -47.3% | 16.7% | 14.9% | 13.7% | 9.2% |
|---|
| Ttk Healthcare ($TTKHEALTH) | | 13.8% | 8.1% | 8.7% | 16.2% |
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 ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | |
| |
|---|
| Median (36 companies) | 16.5% | 12.9% | 13.4% | 15.0% | 15.7% |
|---|
| Ttk Healthcare ($TTKHEALTH) | 7.1% | 6.9% | 5.4% | 4.8% | 6.3% |
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 ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | |
| |
|---|
| Median (28 companies) | 7.4% | 8.2% | 8.3% | 5.8% | 6.0% |
|---|
| Ttk Healthcare ($TTKHEALTH) | 3.0% | 1.2% | 2.0% | 3.7% | 10.2% |
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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| |
|---|
| Median (63 companies) | 13.5% | 13.7% | 13.2% | 15.6% | 14.9% |
|---|
| Ttk Healthcare ($TTKHEALTH) | 19.9% | 19.7% | 15.5% | 12.8% | 15.9% |
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 ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.6x | 1.6x | 1.4x | 0.3x | 1.1x |
|---|
| Ttk Healthcare ($TTKHEALTH) | 0.0x | 0.3x | 0.5x | 0.9x | 0.7x |
