Poddar Pigments Net Income surged on 21.1% in 2015 and Revenue increased slightly on 1.6%

25-05-2015 • About Poddar Pigments ($PODARPIGQ) • By InTwits

Poddar Pigments reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is relatively stable: 7.0% in FY2015 vs. 7.1% in FY2014 vs. 8.4% in FY2011.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Poddar Pigments ($PODARPIGQ) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	1,865	2,219	2,755	3,132	3,183	1.6%
EBITDA	156	198	200	221	224	1.3%
Net Income	96	98	128	135	163	21.1%
Balance Sheet
Cash	12	23	8
Short Term Debt	166	171	109
Long Term Debt	73	46	0
Cash flow
Capex	134	36
Ratios
Revenue growth	-50.8%	19.0%	24.1%	13.7%	1.6%
EBITDA growth	26.2%	26.7%	1.3%	10.6%	1.3%
EBITDA Margin	8.4%	8.9%	7.3%	7.1%	7.0%	-0.0%
Net Income Margin	5.1%	4.4%	4.6%	4.3%	5.1%	0.8%
CAPEX, % of revenue	7.2%	1.6%				0.0%
ROIC	17.6%	19.0%	20.2%			0.0%
ROE	19.1%	17.2%	19.4%			0.0%
Net Debt/EBITDA	1.5x	1.0x	0.5x	0.0x	0.0x	0.0x

Revenue and profitability

Poddar Pigments's Revenue increased slightly on 1.6% in FY2015. EBITDA Margin showed almost no change in FY2015.

Net Income marign increased slightly on 0.83 pp from 4.3% to 5.1% in FY2015.

Management team

Poddar Pigments's CEO Ramesh Kumar Sureka has spent 19 years at the company.

Appendix 1: Peers in Specialty Chemicals

Below we provide Poddar Pigments benchmarking against other companies in Specialty Chemicals 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
Dai-Ichi Karkaria ($DAICHI)		20.7%	31.4%	45.4%	22.8%
Dynemic Products ($DYNPRO)	-55.8%	27.4%	-0.0%	40.6%
Camlin Fine Sciences ($CAMLINFIN)		95.3%	11.4%	36.1%	9.8%
Sudarshan Chemical Industries ($SUDARSCHEM)	-49.4%	10.5%	9.1%	28.2%
Vinati Organics ($VINATIORGA)		38.7%	23.6%	25.9%	10.9%
Median (27 companies)	-49.8%	20.9%	11.4%	11.3%	9.8%
Poddar Pigments ($PODARPIGQ)		19.0%	24.1%	13.7%	1.6%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Vinati Organics ($VINATIORGA)	21.7%	21.7%	21.8%	22.7%	24.9%
Adi Finechem ($ADIFINCHM)	18.2%	15.1%	14.0%	22.1%	16.5%
Solar Industries India ($SOLARINDS)	18.1%	18.5%	17.5%	17.9%	19.3%
Ultramarine & Pigments ($ULTRAMAR)	20.1%	18.0%	15.5%	17.4%
Anil ($ANILLTD)	17.4%	18.1%	16.9%	17.1%
Median (25 companies)	11.7%	10.7%	12.8%	10.6%	15.9%
Poddar Pigments ($PODARPIGQ)	8.4%	8.9%	7.3%	7.1%	7.0%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Adi Finechem ($ADIFINCHM)	8.2%	7.3%	4.8%	12.6%	16.9%
Solar Industries India ($SOLARINDS)	14.2%	13.0%	9.9%	12.3%	10.3%
Nitta Gelatin India ($NITTAGELA)	21.3%	8.8%	4.6%	8.5%
Meghmani Organics ($MEGH)	9.9%	10.2%	10.3%	7.9%	4.6%
Camlin Fine Sciences ($CAMLINFIN)	7.5%	4.3%	5.7%	7.1%	5.1%
Median (19 companies)	7.1%	5.2%	4.6%	4.4%	5.1%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Adi Finechem ($ADIFINCHM)	27.6%	30.6%	29.8%	46.4%	26.3%
Vinati Organics ($VINATIORGA)	31.4%	29.6%	26.2%	30.6%	34.8%
Pidilite Industries ($PIDILITIND)	29.3%	27.4%	29.3%	29.8%	29.0%
Camlin Fine Sciences ($CAMLINFIN)	9.9%	11.1%	17.8%	24.2%	29.5%
Plastiblends India ($PLASTIBLEN)	19.4%	18.3%	15.8%	24.0%
Median (35 companies)	14.8%	14.7%	14.8%	11.4%	22.4%
Poddar Pigments ($PODARPIGQ)	17.6%	19.0%	20.2%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Cochin Minerals & Rutile ($COCHINM)	0.7x	-0.0x	-0.0x	32.3x
Alkali Metals ($ALKALI)	4.3x		5.1x	11.6x	0.0x
Kiri Industries ($KIRIINDUS)	3.9x	8.2x	31.3x	10.6x
Vikas Globalone ($VIKASGLOB)	0.0x	2.5x	4.4x	4.9x
Jayant Agro-Organics ($JAYAGROGN)	3.9x	2.8x	3.1x	4.6x	6.5x
Median (28 companies)	1.3x	1.5x	1.7x	1.7x	0.0x
Poddar Pigments ($PODARPIGQ)	1.5x	1.0x	0.5x	0.0x	0.0x

Poddar Pigments stock price chart

Poddar Pigments financials

mln.	FY2010	FY2011	FY2012

Revenue	3,789	1,865	2,219
EBITDA	123.6	155.9	197.6
Net income	141.9	95.542	98.440
CAPEX	27.795	133.6	36.010
Debt	79.333	239.9	216.4
Cash	10.702	12.494	23.154

About Poddar Pigments

Poddar Pigments Limited manufactures and sells color and additive masterbatches for dope dyeing of man-made fibers and various plastic applications; and engineering plastic compounds in India and internationally. The company offers single pigment concentrate masterbatches for automotive, textiles, non woven, and spun bonded fibres; tailor made masterbatches for fabrics, textiles, outdoor applications, and fluorescent effect; black masterbatches for fabrics, home furnishing, and apparels; white masterbatches for yarns, apparel, and fabrics; and additive masterbatches for yarns. It also provides polypropylene masterbatches for applications in carpets, home furnishings, upholstery, hosiery-wear, PP strapping, and non-woven and spun bonded fabrics; and polyamides masterbatches for apparels, carpets, home furnishings, upholstery, hosiery, automobiles, nonwovens, etc. In addition, the company offers white, black, and custom color masterbatches for film and packaging; masterbatches for broad pipe extrusion applications; cable masterbatches for jelly filled telecom and optical fiber cables; color masterbatches for PET bottle and pre-form coverings; and white, color, and antiblock masterbatches for BOPET film applications; and color and additives masterbatches for injection, blow, and roto moulding applications, as well as bio-degradable, halogenated flame retardant, and antimicrobial masterbatches. Further, it offers engineering plastic compounds that consist of unfilled colors, unfilled FR, glass filled FR, UV stabilized, mineral filled, and unfilled colors used in various applications, such as day to day consumer products, electrical switches and other electrical components, home appliances, automotives, telecommunication, railways, national defense, etc. The company offers engineering plastic compounds under the MASTERPLUS brand name. Poddar Pigments Limited was incorporated in 1991 and is headquartered in Mumbai, India.