Pokarna Net Income jumped on 169% in 2015 and Revenue surged on 41.5%
25-05-2015 • About Pokarna (
$POKARNA) • By InTwits
Pokarna reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 25.7% in FY2015 vs. 20.9% in FY2014 vs. 15.7% in FY2011
- Pokarna has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 160 in FY2015, 55.6 in FY2014, 102 in FY2013, 36.0 in FY2012, 58.2 in FY2011
- The company has highly profitable business model: ROIC is at 17.9%
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pokarna ($POKARNA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,668 | 1,808 | 2,035 | 2,306 | 3,264 | 41.5% |
| EBITDA | 263 | 286 | 350 | 483 | 840 | 74.1% |
| Net Income | -215 | -309 | -66 | 117 | 314 | 168.6% |
Balance Sheet
|
|---|
| Cash | 15 | 36 | 61 | 28 | 108 | 280.1% |
| Short Term Debt | 437 | 523 | 789 | 1,036 | 894 | -13.7% |
| Long Term Debt | 2,675 | 1,850 | 1,951 | 2,065 | 2,008 | -2.8% |
Cash flow
|
|---|
| Capex | 58 | 36 | 102 | 56 | 160 | 187.1% |
Ratios
|
|---|
| Revenue growth | -57.8% | 8.4% | 12.6% | 13.3% | 41.5% | |
| EBITDA growth | 42.7% | 9.0% | 22.5% | 37.7% | 74.1% | |
| EBITDA Margin | 15.7% | 15.8% | 17.2% | 20.9% | 25.7% | 4.8% |
| Net Income Margin | -12.9% | -17.1% | -3.3% | 5.1% | 9.6% | 4.5% |
| CAPEX, % of revenue | 3.5% | 2.0% | 5.0% | 2.4% | 4.9% | 2.5% |
| ROIC | 1.9% | 3.0% | 4.5% | 8.8% | 17.9% | 9.0% |
| ROE | -33.7% | -82.2% | -35.2% | 56.6% | 79.6% | 23.0% |
| Net Debt/EBITDA | 11.8x | 8.2x | 7.6x | 6.4x | 3.3x | -3.0x |
Revenue and profitability
Pokarna's Revenue jumped on 41.5% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 9.2% to 10.5% in FY2015.
Net Income marign increased on 4.5 pp from 5.1% to 9.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.9%. CAPEX/Revenue increased on 2.9 pp from 2.0% in FY2012 to 4.9% in FY2015. Average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at high and attractive ROE (79.59%) while ROIC is a bit lower (17.89%). ROIC increased on 9.0 pp from 8.8% to 17.9% in FY2015. ROE surged on 23.0 pp from 56.6% to 79.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is 3.5x. Net Debt / EBITDA dropped on 3.0x from 6.4x to 3.3x in FY2015. Debt decreased on 6.4% in FY2015 while cash jumped on 280% in FY2015.
Valuation
The company's trades at EV/EBITDA 9.1x and P/E 15.4x while industy averages are 10.5x and 26.1x. Pokarna's EV/(EBITDA-CAPEX) is 11.2x with the industry average at 4.7x.
Appendix 1: Peers in Construction Materials
Below you can find Pokarna benchmarking vs. other companies in Construction Materials 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ramco Industries ($RAMCOIND) | -36.6% | 17.3% | 15.3% | -10.4% | |
| |
|---|
| Median (1 company) | -36.6% | 17.3% | 15.3% | -10.4% | |
|---|
| Pokarna ($POKARNA) | | 8.4% | 12.6% | 13.3% | 41.5% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ramco Industries ($RAMCOIND) | 18.4% | 17.0% | 14.4% | 7.7% | |
| |
|---|
| Median (1 company) | 18.4% | 17.0% | 14.4% | 7.7% | |
|---|
| Pokarna ($POKARNA) | 15.7% | 15.8% | 17.2% | 20.9% | 25.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ramco Industries ($RAMCOIND) | 6.2% | 12.4% | 3.7% | 20.7% | |
| |
|---|
| Median (1 company) | 6.2% | 12.4% | 3.7% | 20.7% | |
|---|
| Pokarna ($POKARNA) | 3.5% | 2.0% | 5.0% | 2.4% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ramco Industries ($RAMCOIND) | 14.1% | 14.4% | 12.0% | 1.6% | |
| Triveni Glass ($TRIVENIGQ) | -20.3% | | | | |
| Milestone Global ($MILESTONE) | | | | | |
| Oriental Trimex ($ORIENTALTL) | 8.8% | 8.5% | -2.8% | | |
| Pg Industry ($PGINDST) | | 12.3% | 16.1% | | |
| |
|---|
| Median (8 companies) | 7.7% | 8.2% | 9.9% | 1.6% | |
|---|
| Pokarna ($POKARNA) | 1.9% | 3.0% | 4.5% | 8.8% | 17.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ramco Industries ($RAMCOIND) | 1.5x | 1.1x | 2.1x | 6.2x | |
| Milestone Global ($MILESTONE) | | 2.3x | 0.0x | 0.0x | |
| Madhav Marbles & Granites ($MADHAV) | 0.6x | -0.0x | -0.7x | 0.0x | |
| Glittek Granites ($GLITTEKG) | 3.7x | 3.4x | 4.0x | 0.0x | |
| |
|---|
| Median (4 companies) | 2.6x | 2.2x | 2.1x | 0.0x | |
|---|
| Pokarna ($POKARNA) | 11.8x | 8.2x | 7.6x | 6.4x | 3.3x |
