P.I.Industries reports 162% CAPEX growth and 21.6% Revenue growth
23-05-2015 • About P.I.Industries (
$PIIND) • By InTwits
P.I.Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- P.I.Industries has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.6%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 1,692 in FY2015, 645 in FY2014, 1,510 in FY2013, 1,178 in FY2012, 971 in FY2011
- The company has highly profitable business model: ROIC is at 34.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
P.I.Industries ($PIIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,177 | 8,770 | 11,484 | 15,955 | 19,403 | 21.6% |
| EBITDA | 1,115 | 1,493 | 1,814 | 2,942 | 3,803 | 29.3% |
| Net Income | 651 | 1,036 | 973 | 1,880 | 2,459 | 30.8% |
Balance Sheet
|
|---|
| Cash | 42 | 57 | 82 | 350 | 229 | -34.7% |
| Short Term Debt | 1,793 | 1,277 | 1,321 | 722 | 981 | 36.0% |
| Long Term Debt | 590 | 1,191 | 851 | 501 | 167 | -66.8% |
Cash flow
|
|---|
| Capex | 971 | 1,178 | 1,510 | 645 | 1,692 | 162.3% |
Ratios
|
|---|
| Revenue growth | -69.9% | 22.2% | 31.0% | 38.9% | 21.6% | |
| EBITDA growth | 32.5% | 33.9% | 21.5% | 62.2% | 29.3% | |
| EBITDA Margin | 15.5% | 17.0% | 15.8% | 18.4% | 19.6% | 1.2% |
| Net Income Margin | 9.1% | 11.8% | 8.5% | 11.8% | 12.7% | 0.9% |
| CAPEX, % of revenue | 13.5% | 13.4% | 13.2% | 4.0% | 8.7% | 4.7% |
| ROIC | 22.4% | 23.9% | 22.5% | 31.3% | 34.0% | 2.7% |
| ROE | 38.3% | 39.0% | 22.7% | 30.7% | 30.9% | 0.2% |
| Net Debt/EBITDA | 2.1x | 1.6x | 1.2x | 0.3x | 0.2x | -0.1x |
Revenue and profitability
P.I.Industries's Revenue surged on 21.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 10.3% to 12.2% in FY2015.
Net Income marign increased slightly on 0.89 pp from 11.8% to 12.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 P.I.Industries had CAPEX/Revenue of 8.7%. P.I.Industries showed decline in CAPEX/Revenue of 4.7 pp from 13.4% in FY2012 to 8.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.6%.
Return on investment
The company operates at high and attractive ROIC (34.04%) and ROE (30.91%). ROIC increased on 2.7 pp from 31.3% to 34.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 0.3x to 0.2x in FY2015. Debt decreased on 6.1% in FY2015 while cash dropped on 34.7% in FY2015.
Management team
Mayank Singhal is a P.I.Industries's CEO. Mayank Singhal has spent 8 years at the company.
Appendix 1: Peers in Agrochemicals
Below we provide P.I.Industries benchmarking against other companies in Agrochemicals 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 |
|---|
| Astec Lifesciences Limited ($ASTEC) | | 2.6% | 55.7% | 18.4% | 28.9% |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | | 15.2% | 113.6% | 18.4% | 25.9% |
| Excel Industries ($EXCELINDUS) | | 14.7% | 21.7% | 8.3% | 15.8% |
| Rallis India ($RALLIS) | | 17.4% | 14.4% | 19.8% | 4.3% |
| Monsanto India ($MONSANTO) | | 2.9% | 16.8% | 33.6% | -4.6% |
| |
|---|
| Median (6 companies) | -59.4% | 15.2% | 18.2% | 18.4% | 10.0% |
|---|
| P.I.Industries ($PIIND) | | 22.2% | 31.0% | 38.9% | 21.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monsanto India ($MONSANTO) | 18.3% | 15.1% | 16.4% | 7.3% | 20.9% |
| Astec Lifesciences Limited ($ASTEC) | 14.5% | 15.5% | 16.7% | 17.1% | 20.3% |
| Rallis India ($RALLIS) | 18.2% | 16.2% | 14.7% | 15.2% | 15.4% |
| Jubilant Industries ($JUBLINDS) | 9.9% | 1.8% | 1.6% | | 15.3% |
| Excel Industries ($EXCELINDUS) | 12.6% | 8.5% | 10.9% | 9.8% | 15.0% |
| |
|---|
| Median (6 companies) | 12.6% | 11.0% | 11.3% | 10.2% | 15.4% |
|---|
| P.I.Industries ($PIIND) | 15.5% | 17.0% | 15.8% | 18.4% | 19.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Astec Lifesciences Limited ($ASTEC) | 32.6% | 41.7% | 14.9% | 9.2% | 7.5% |
| Excel Industries ($EXCELINDUS) | 3.7% | 7.6% | 5.7% | 8.5% | 6.8% |
| Rallis India ($RALLIS) | 12.1% | 4.5% | 3.2% | 3.4% | 3.3% |
| Jubilant Industries ($JUBLINDS) | 3.5% | 1.7% | | | 2.6% |
| Monsanto India ($MONSANTO) | 3.3% | 3.3% | 2.0% | 1.9% | 1.7% |
| |
|---|
| Median (5 companies) | 4.0% | 6.0% | 5.7% | 3.9% | 3.3% |
|---|
| P.I.Industries ($PIIND) | 13.5% | 13.4% | 13.2% | 4.0% | 8.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rallis India ($RALLIS) | 32.6% | 26.3% | 25.3% | 28.3% | 25.4% |
| Insecticides (India) ($INSECTICID) | 23.5% | 19.2% | 15.6% | 15.7% | |
| Excel Industries ($EXCELINDUS) | 13.8% | 8.5% | 14.2% | 11.9% | 20.3% |
| Astec Lifesciences Limited ($ASTEC) | 7.2% | 5.6% | 9.7% | 10.7% | 19.1% |
| Monsanto India ($MONSANTO) | 15.1% | 12.4% | 15.3% | 7.8% | 29.2% |
| |
|---|
| Median (9 companies) | 13.8% | 6.4% | 9.7% | 11.9% | 22.9% |
|---|
| P.I.Industries ($PIIND) | 22.4% | 23.9% | 22.5% | 31.3% | 34.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Industries ($JUBLINDS) | -0.0x | 12.1x | 11.5x | | 2.5x |
| Astec Lifesciences Limited ($ASTEC) | 2.7x | 4.1x | 2.4x | 2.3x | 1.7x |
| Excel Industries ($EXCELINDUS) | 1.4x | 2.7x | 1.6x | 2.3x | 1.3x |
| Rallis India ($RALLIS) | 0.5x | 0.7x | 0.1x | 0.2x | 0.4x |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 13.9x | 163.2x | 3.6x | 0.0x | 0.0x |
| |
|---|
| Median (6 companies) | 1.1x | 3.4x | 3.0x | 0.2x | 0.8x |
|---|
| P.I.Industries ($PIIND) | 2.1x | 1.6x | 1.2x | 0.3x | 0.2x |
