Pearl Global Industries Debt dropped on 72.5% in 2015 and Net Debt / EBITDA dropped on 4.2x from 7.0x to 2.7x
22-05-2015 • About Pearl Global Industries (
$PGIL) • By InTwits
Pearl Global Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pearl Global Industries is a company in decline: FY2015 revenue growth was -78.2%, 5 years revenue CAGR was -2.7%
- EBITDA Margin is quite volatile: 4.8% in FY2015, 1.4% in FY2014, 2.4% in FY2013, 3.1% in FY2012, 1.8% in FY2011
- Pearl Global Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 314 in FY2015, 619 in FY2014, 257 in FY2013, 266 in FY2012, 423 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pearl Global Industries ($PGIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22,510 | 27,985 | 38,202 | 46,990 | 10,237 | -78.2% |
| EBITDA | 416 | 856 | 930 | 667 | 496 | -25.6% |
| Net Income | 196 | 315 | 238 | 386 | 251 | -35.1% |
Balance Sheet
|
|---|
| Cash | 985 | 683 | 688 | 1,402 | 305 | -78.2% |
| Short Term Debt | 4,080 | 3,982 | 4,520 | 5,397 | 1,528 | -71.7% |
| Long Term Debt | 395 | 533 | 542 | 657 | 139 | -78.9% |
Cash flow
|
|---|
| Capex | 423 | 266 | 257 | 619 | 314 | -49.3% |
Ratios
|
|---|
| Revenue growth | 92.1% | 24.3% | 36.5% | 23.0% | -78.2% | |
| EBITDA growth | 431.1% | 105.6% | 8.6% | -28.3% | -25.6% | |
| EBITDA Margin | 1.8% | 3.1% | 2.4% | 1.4% | 4.8% | 3.4% |
| Net Income Margin | 0.9% | 1.1% | 0.6% | 0.8% | 2.4% | 1.6% |
| CAPEX, % of revenue | 1.9% | 0.9% | 0.7% | 1.3% | 3.1% | 1.8% |
| ROIC | 2.2% | 6.1% | 6.0% | 3.0% | 3.6% | 0.7% |
| ROE | 4.2% | 6.2% | 4.1% | 5.9% | 5.0% | -1.0% |
| Net Debt/EBITDA | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x | -4.2x |
Revenue and profitability
The company's Revenue dropped on 78.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign increased slightly on 1.6 pp from 0.82% to 2.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Pearl Global Industries's CAPEX/Revenue was 3.1% in FY2015. The company showed CAPEX/Revenue growth of 2.1 pp from 0.95% in FY2012 to 3.1% in FY2015. It's average CAPEX/Revenue for the last three years was 1.7%.Pearl Global Industries invested a big chunk of EBITDA (63.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (3.64%) and ROE (4.95%). ROIC increased slightly on 0.65 pp from 3.0% to 3.6% in FY2015. ROE decreased slightly on 0.95 pp from 5.9% to 5.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 4.2x from 7.0x to 2.7x in FY2015. Debt dropped on 72.5% in FY2015 while cash dropped on 78.2% in FY2015.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Pearl Global Industries 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 ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -23.9% | 10.1% | 19.1% | 14.1% | 6.7% |
|---|
| Pearl Global Industries ($PGIL) | | 24.3% | 36.5% | 23.0% | -78.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
| 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 ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| |
|---|
| Median (18 companies) | 8.7% | 7.6% | 6.1% | 6.1% | 5.0% |
|---|
| Pearl Global Industries ($PGIL) | 1.8% | 3.1% | 2.4% | 1.4% | 4.8% |
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% | |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| |
|---|
| Median (14 companies) | 1.9% | 1.8% | 1.7% | 1.1% | 0.7% |
|---|
| Pearl Global Industries ($PGIL) | 1.9% | 0.9% | 0.7% | 1.3% | 3.1% |
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 ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | 23.8% |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | 39.9% |
| |
|---|
| Median (40 companies) | 10.4% | 10.1% | 7.2% | 11.0% | 16.0% |
|---|
| Pearl Global Industries ($PGIL) | 2.2% | 6.1% | 6.0% | 3.0% | 3.6% |
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 | |
| 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 |
| Tribhovandas Bhimji Zaveri ($TBZ) | 2.4x | 1.6x | 2.7x | 4.1x | 6.6x |
| |
|---|
| Median (24 companies) | 2.7x | 2.2x | 2.7x | 0.0x | 0.4x |
|---|
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x |
