Divi'S Laboratories CAPEX surged on 24.7% in 2015 and Revenue surged on 23.3%
23-05-2015 • About Divi'S Laboratories (
$DIVISLAB) • By InTwits
Divi'S Laboratories reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Divi'S Laboratories has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.7%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: 1,367 in FY2015, 604 in FY2014, 411 in FY2013, 744 in FY2012, 633 in FY2011
- The company has highly profitable business model: ROIC is at 30.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Divi'S Laboratories ($DIVISLAB) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,071 | 18,584 | 21,399 | 25,253 | 31,149 | 23.3% |
| EBITDA | 4,983 | 6,915 | 8,165 | 10,152 | 11,658 | 14.8% |
| Net Income | 4,293 | 5,333 | 6,020 | 7,733 | 8,515 | 10.1% |
Balance Sheet
|
|---|
| Cash | 145 | 173 | 120 | 151 | 646 | 328.5% |
| Short Term Debt | 136 | 502 | 310 | 169 | 256 | 51.6% |
| Long Term Debt | 94 | 26 | 21 | 16 | 11 | -32.3% |
Cash flow
|
|---|
| Capex | 1,627 | 2,892 | 3,401 | 2,465 | 3,072 | 24.7% |
Ratios
|
|---|
| Revenue growth | -64.8% | 42.2% | 15.1% | 18.0% | 23.3% | |
| EBITDA growth | 19.6% | 38.8% | 18.1% | 24.3% | 14.8% | |
| EBITDA Margin | 38.1% | 37.2% | 38.2% | 40.2% | 37.4% | -2.8% |
| Net Income Margin | 32.8% | 28.7% | 28.1% | 30.6% | 27.3% | -3.3% |
| CAPEX, % of revenue | 12.4% | 15.6% | 15.9% | 9.8% | 9.9% | 0.1% |
| ROIC | 25.6% | 30.6% | 30.4% | 32.3% | 30.5% | -1.8% |
| ROE | 25.9% | 27.1% | 26.0% | 28.3% | 26.4% | -1.9% |
| Net Debt/EBITDA | 0.0x | 0.1x | 0.0x | 0.0x | -0.0x | -0.0x |
Revenue and profitability
Divi'S Laboratories's Revenue jumped on 23.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.2 pp from 24.8% to 17.6% in FY2015.
Net Income marign decreased on 3.3 pp from 30.6% to 27.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Divi'S Laboratories had CAPEX/Revenue of 9.9%. Divi'S Laboratories showed decline in CAPEX/Revenue of 5.7 pp from 15.6% in FY2012 to 9.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 11.8%.
Return on investment
The company operates at high and attractive ROIC (30.54%) and ROE (26.37%). ROIC decreased slightly on 1.8 pp from 32.3% to 30.5% in FY2015. ROE decreased slightly on 1.9 pp from 28.3% to 26.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.0x and Debt / EBITDA is 0.0x. Net Debt / EBITDA decreased on 0.036x from 0.0033x to -0.033x in FY2015. Debt surged on 44.5% in FY2015 while cash jumped on 329% in FY2015.
Management team
The company's CEO Murali Krishna Prasad Divi has spent 14 years at the company.
Appendix 1: Peers in Pharmaceuticals
Below you can find Divi'S Laboratories 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 ($ABBOTINDIA) | -46.4% | 8.2% | 8.7% | 27.3% | |
| |
|---|
| Median (41 companies) | -46.4% | 16.6% | 14.7% | 12.6% | 10.4% |
|---|
| Divi'S Laboratories ($DIVISLAB) | | 42.2% | 15.1% | 18.0% | 23.3% |
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 ($SUNPHARMA) | 34.3% | 40.8% | 44.3% | 44.9% | |
| Venus Remedies ($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% | 26.2% |
| Ipca Laboratories ($IPCALAB) | 20.0% | 22.3% | 22.6% | 24.8% | |
| |
|---|
| Median (36 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 15.0% |
|---|
| Divi'S Laboratories ($DIVISLAB) | 38.1% | 37.2% | 38.2% | 40.2% | 37.4% |
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 ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | 14.1% |
| |
|---|
| Median (28 companies) | 7.3% | 7.7% | 7.5% | 5.7% | 6.4% |
|---|
| Divi'S Laboratories ($DIVISLAB) | 12.4% | 15.6% | 15.9% | 9.8% | 9.9% |
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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| |
|---|
| Median (63 companies) | 13.5% | 13.7% | 13.2% | 14.4% | 14.9% |
|---|
| Divi'S Laboratories ($DIVISLAB) | 25.6% | 30.6% | 30.4% | 32.3% | 30.5% |
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 ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.6x | 1.6x | 1.4x | 0.5x | 1.1x |
|---|
| Divi'S Laboratories ($DIVISLAB) | 0.0x | 0.1x | 0.0x | 0.0x | -0.0x |
