Bhartiya International EBITDA jumped on 42.9% in 2015 and EBITDA Margin increased slightly on 0.55 pp from 8.9% to 9.5%
25-05-2015 • About Bhartiya International (
$BIL) • By InTwits
Bhartiya International reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bhartiya International has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 282 in FY2015, 363 in FY2014, 212 in FY2013, 144 in FY2012, 129 in FY2011
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bhartiya International ($BIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,952 | 2,507 | 3,031 | 4,144 | 5,581 | 34.7% |
| EBITDA | 207 | 287 | 279 | 370 | 528 | 42.9% |
| Net Income | 64 | 115 | 101 | 145 | 210 | 44.7% |
Balance Sheet
|
|---|
| Cash | 96 | 114 | 154 | 425 | 356 | -16.3% |
| Short Term Debt | 598 | 678 | 766 | 1,393 | 1,675 | 20.2% |
| Long Term Debt | 62 | 89 | 272 | 314 | 314 | 0.0% |
Cash flow
|
|---|
| Capex | 88 | 113 | 117 | 74 | 115 | 56.1% |
Ratios
|
|---|
| Revenue growth | -71.6% | 28.4% | 20.9% | 36.7% | 34.7% | |
| EBITDA growth | 20.4% | 38.6% | -2.8% | 32.6% | 42.9% | |
| EBITDA Margin | 10.6% | 11.4% | 9.2% | 8.9% | 9.5% | 0.5% |
| Net Income Margin | 3.3% | 4.6% | 3.3% | 3.5% | 3.8% | 0.3% |
| CAPEX, % of revenue | 4.5% | 4.5% | 3.9% | 1.8% | 2.1% | 0.3% |
| ROIC | 10.4% | 13.0% | 10.6% | 11.2% | 12.8% | 1.7% |
| ROE | 5.7% | 9.2% | 7.4% | 9.7% | 12.6% | 2.9% |
| Net Debt/EBITDA | 2.7x | 2.3x | 3.2x | 3.5x | 3.1x | -0.4x |
Revenue and profitability
The company's Revenue surged on 34.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.1 pp from 5.4% to -15.7% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bhartiya International's CAPEX/Revenue was 2.1% in FY2015. Bhartiya International's CAPEX/Revenue decreased on 2.5 pp from 4.5% in FY2012 to 2.1% in FY2015. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at good ROIC (12.84%) and ROE (12.60%). ROIC increased slightly on 1.7 pp from 11.2% to 12.8% in FY2015. ROE increased on 2.9 pp from 9.7% to 12.6% in FY2015.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 3.5x to 3.1x in FY2015. Debt surged on 16.5% in FY2015 while cash dropped on 16.3% in FY2015.
Valuation
The company's trades at EV/EBITDA 12.6x and P/E 24.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 16.2x with the industry average at 4.7x.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Bhartiya International 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% | |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| Asian Star Co ($ASTAR) | | 10.1% | 34.2% | 32.0% | -0.9% |
| |
|---|
| Median (23 companies) | -23.9% | 10.1% | 19.1% | 14.1% | 6.7% |
|---|
| Bhartiya International ($BIL) | | 28.4% | 20.9% | 36.7% | 34.7% |
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 ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| |
|---|
| Median (18 companies) | 7.9% | 7.5% | 5.5% | 5.4% | 5.2% |
|---|
| Bhartiya International ($BIL) | 10.6% | 11.4% | 9.2% | 8.9% | 9.5% |
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 ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| Thangamayil Jewellery ($THANGAMAYL) | 1.9% | 3.5% | 1.2% | 1.4% | 0.2% |
| |
|---|
| Median (14 companies) | 1.9% | 1.5% | 1.3% | 1.1% | 0.7% |
|---|
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | 2.1% |
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 ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | 39.9% |
| |
|---|
| Median (40 companies) | 8.8% | 9.3% | 7.2% | 10.9% | 7.7% |
|---|
| Bhartiya International ($BIL) | 10.4% | 13.0% | 10.6% | 11.2% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | 61.2x |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (24 companies) | 2.7x | 2.2x | 2.7x | 0.0x | 0.4x |
|---|
| Bhartiya International ($BIL) | 2.7x | 2.3x | 3.2x | 3.5x | 3.1x |
