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Thangamayil Jewellery Net Debt / EBITDA surged on 49.4x from 11.9x to 61.2x in 2015 while Debt dropped on 23.3%

25-05-2015 • About Thangamayil Jewellery ($THANGAMAYL) • By InTwits

Thangamayil Jewellery reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Thangamayil Jewellery doesn't have a profitable business model yet: FY2015 ROIC is -1.6%
  • EBITDA Margin is declining: 0.2% in FY2015 vs. 1.6% in FY2014 vs. 8.9% in FY2011
  • EBITDA Margin is quite volatile: 0.2% in FY2015, 1.6% in FY2014, 5.5% in FY2013, 10.5% in FY2012, 8.9% in FY2011
  • Thangamayil Jewellery has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 1.6%.
  • CAPEX is quite volatile: 33.8 in FY2015, 170 in FY2014, 186 in FY2013, 400 in FY2012, 125 in FY2011
  • The company has unprofitable business model: ROIC is at -1.6%
  • It operates with high leverage: Net Debt/EBITDA is 61.2x while industry average is 4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Thangamayil Jewellery ($THANGAMAYL) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue6,57911,31315,23011,91314,21319.3%
EBITDA5881,18483718628-84.7%
Net Income313591296-126-223
Balance Sheet
Cash536412410334-66.6%
Short Term Debt1,0602,5092,1652,1291,273-40.2%
Long Term Debt282196164186503170.3%
Cash flow
Capex12540018617034-80.1%
Ratios
Revenue growth-61.0%72.0%34.6%-21.8%19.3%
EBITDA growth89.7%101.5%-29.3%-77.7%-84.7%
EBITDA Margin8.9%10.5%5.5%1.6%0.2%-1.4%
Net Income Margin4.8%5.2%1.9%-1.1%-1.6%-0.5%
CAPEX, % of revenue1.9%3.5%1.2%1.4%0.2%-1.2%
ROIC29.6%34.8%19.0%3.3%-1.6%-4.9%
ROE36.2%48.3%18.9%-7.8%-15.8%-8.0%
Net Debt/EBITDA2.2x2.2x2.6x11.9x61.2x49.4x

Revenue and profitability


The company's Revenue surged on 19.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from 15.0% to 17.1% in FY2015.

Net Income marign decreased slightly on 0.51 pp from -1.1% to -1.6% in FY2015.

Capital expenditures (CAPEX) and working capital investments


Thangamayil Jewellery's CAPEX/Revenue was 0.24% in FY2015. The company's CAPEX/Revenue decreased on 3.3 pp from 3.5% in FY2012 to 0.24% in FY2015. It's average CAPEX/Revenue for the last three years was 0.96%.Thangamayil Jewellery has spent a lot to CAPEX (119% of EBITDA) to fuel its growth.

Return on investment


The company operates at negative ROIC (-1.62%) and ROE (-15.79%). ROIC decreased on 4.9 pp from 3.3% to -1.6% in FY2015. ROE decreased on 8.0 pp from -7.8% to -15.8% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 61.2x and Debt / EBITDA is 62.4x. Net Debt / EBITDA surged on 49.4x from 11.9x to 61.2x in FY2015. Debt dropped on 23.3% in FY2015 while cash dropped on 66.6% in FY2015.

Appendix 1: Peers in Other Apparels & Accessories


Below you can find Thangamayil Jewellery 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%
Bhartiya International ($BIL)28.4%20.9%36.7%34.7%
Celebrity Fashions ($CELEBRITY)1.0%-8.6%35.2%-21.7%
Super Tannery ($SUPTANERY)-30.0%-1.4%0.3%34.6%
 
Median (23 companies)-23.9%10.1%19.1%15.3%6.7%
Thangamayil Jewellery ($THANGAMAYL)72.0%34.6%-21.8%19.3%


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%6.1%6.1%6.4%
Thangamayil Jewellery ($THANGAMAYL)8.9%10.5%5.5%1.6%0.2%


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 ($TARAJEWELS)1.8%1.6%1.3%3.1%
Bhartiya International ($BIL)4.5%4.5%3.9%1.8%2.1%
Rupa & Company ($RUPA)4.5%1.9%3.9%1.7%2.2%
 
Median (14 companies)1.9%1.5%1.7%1.1%1.4%
Thangamayil Jewellery ($THANGAMAYL)1.9%3.5%1.2%1.4%0.2%


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%11.0%10.5%
Thangamayil Jewellery ($THANGAMAYL)29.6%34.8%19.0%3.3%-1.6%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Shrenuj & Co ($SHRENUJ)8.6x9.3x11.2x11.7x
Pearl Global Industries ($PGIL)8.4x4.5x4.7x7.0x2.7x
C. Mahendra Exports ($CMAHENDRA)4.1x4.5x4.9x6.0x
Asian Star Co ($ASTAR)8.2x7.1x7.1x5.9x4.8x
Tribhovandas Bhimji Zaveri ($TBZ)2.4x1.6x2.7x4.1x6.6x
 
Median (24 companies)2.7x2.3x2.9x0.0x0.4x
Thangamayil Jewellery ($THANGAMAYL)2.2x2.2x2.6x11.9x61.2x


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