Ccl Products (India) reports 41.1% Net Income growth and 0.92 pp EBITDA Margin decline from 21.5% to 20.6%
26-05-2015 • About Ccl Products (India) (
$CCL) • By InTwits
Ccl Products (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ccl Products (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 207 in FY2015, 597 in FY2014, 378 in FY2013, 560 in FY2012, 437 in FY2011
- The company has highly profitable business model: ROIC is at 23.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ccl Products (India) ($CCL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,639 | 5,022 | 6,507 | 7,168 | 8,806 | 22.8% |
| EBITDA | 656 | 1,020 | 1,307 | 1,544 | 1,815 | 17.6% |
| Net Income | 265 | 362 | 474 | 644 | 909 | 41.1% |
Balance Sheet
|
|---|
| Cash | 69 | 22 | 75 | 326 | 248 | -23.7% |
| Short Term Debt | 1,537 | 1,617 | 1,773 | 1,572 | 1,388 | -11.7% |
| Long Term Debt | 964 | 1,062 | 1,248 | 1,349 | 904 | -33.0% |
Cash flow
|
|---|
| Capex | 437 | 560 | 378 | 597 | 207 | -65.3% |
Ratios
|
|---|
| Revenue growth | -65.3% | 38.0% | 29.6% | 10.2% | 22.8% | |
| EBITDA growth | 6.5% | 55.5% | 28.1% | 18.1% | 17.6% | |
| EBITDA Margin | 18.0% | 20.3% | 20.1% | 21.5% | 20.6% | -0.9% |
| Net Income Margin | 7.3% | 7.2% | 7.3% | 9.0% | 10.3% | 1.3% |
| CAPEX, % of revenue | 12.0% | 11.1% | 5.8% | 8.3% | 2.4% | -6.0% |
| ROIC | 9.7% | 16.1% | 18.0% | 19.7% | 23.0% | 3.3% |
| ROE | 12.7% | 15.9% | 18.3% | 20.4% | 23.5% | 3.1% |
| Net Debt/EBITDA | 3.7x | 2.6x | 2.3x | 1.7x | 1.1x | -0.6x |
Revenue and profitability
The company's Revenue surged on 22.8% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.92 pp from 21.5% to 20.6% in FY2015.
Net Income marign increased slightly on 1.3 pp from 9.0% to 10.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.4% in FY2015. Ccl Products (India)'s CAPEX/Revenue decreased on 8.8 pp from 11.1% in FY2012 to 2.4% in FY2015. Average CAPEX/Revenue for the last three years was 5.5%.
Return on investment
The company operates at high and attractive ROIC (22.98%) and ROE (23.48%). ROIC increased on 3.3 pp from 19.7% to 23.0% in FY2015. ROE increased on 3.1 pp from 20.4% to 23.5% in FY2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 1.7x to 1.1x in FY2015. Debt dropped on 21.5% in FY2015 while cash dropped on 23.7% in FY2015.
Valuation
Ccl Products (India)'s trades at EV/EBITDA 14.8x and P/E 27.4x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 16.8x with the industry average at 4.7x.
Appendix 1: Peers in Tea & Coffee
Below we provide Ccl Products (India) benchmarking against other companies in Tea & Coffee 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 |
|---|
| Rossell India ($ROSSELLIND) | -51.1% | 5.4% | 27.9% | 33.6% | |
| Andrew Yule & Company ($ANDREWYU) | -40.5% | 17.1% | 4.7% | 19.3% | |
| Warren Tea ($WARRENTEA) | 40.0% | 0.9% | -44.0% | 17.7% | |
| Bombay Burmah Trading Corp ($BBTC) | | 15.7% | 10.0% | 11.5% | 12.7% |
| Diana Tea Co ($DIANATEA) | -17.9% | -12.6% | -11.1% | 9.9% | |
| |
|---|
| Median (11 companies) | -34.9% | 14.8% | 7.4% | 7.8% | 4.9% |
|---|
| Ccl Products (India) ($CCL) | | 38.0% | 29.6% | 10.2% | 22.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 32.2% | 31.0% | 27.5% | 26.5% | |
| Warren Tea ($WARRENTEA) | 19.0% | 7.9% | 17.7% | 21.8% | |
| Mcleod Russel India ($MCLEODRUSS) | 28.5% | 27.5% | 23.2% | 20.4% | |
| Tata Coffee ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
| B & A ($BNALTD) | | 18.4% | 17.1% | 17.1% | 14.8% |
| |
|---|
| Median (11 companies) | 14.1% | 8.4% | 13.7% | 9.7% | 12.7% |
|---|
| Ccl Products (India) ($CCL) | 18.0% | 20.3% | 20.1% | 21.5% | 20.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 3.3% | 11.0% | 6.7% | 14.8% | |
| Mcleod Russel India ($MCLEODRUSS) | 4.9% | 10.0% | 6.0% | 9.4% | |
| Jay Shree Tea & Industries ($JAYSHREETEA) | 10.7% | 4.5% | 3.7% | 6.4% | 3.5% |
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
| Tata Global Beverages ($TATAGLOBAL) | 1.7% | 2.0% | 2.4% | 2.6% | |
| |
|---|
| Median (9 companies) | 4.1% | 4.5% | 3.6% | 2.6% | 3.5% |
|---|
| Ccl Products (India) ($CCL) | 12.0% | 11.1% | 5.8% | 8.3% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Warren Tea ($WARRENTEA) | 19.3% | 4.3% | 12.7% | 25.7% | |
| Bombay Burmah Trading Corp ($BBTC) | 9.4% | 10.7% | 13.9% | 20.6% | 23.7% |
| Goodricke Group ($GOODRICKE) | 27.7% | 13.0% | 20.9% | 16.8% | |
| Tata Coffee ($TATACOFFEE) | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% |
| Mcleod Russel India ($MCLEODRUSS) | 17.5% | 18.6% | 15.7% | 12.9% | |
| |
|---|
| Median (14 companies) | 9.7% | 9.4% | 12.7% | 12.9% | 14.0% |
|---|
| Ccl Products (India) ($CCL) | 9.7% | 16.1% | 18.0% | 19.7% | 23.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 5.9x | 8.6x | 4.5x | 8.2x | 19.5x |
| Tata Coffee ($TATACOFFEE) | 2.7x | 3.6x | 2.6x | 2.7x | 2.5x |
| Andrew Yule & Company ($ANDREWYU) | 4.3x | 2.1x | 5.4x | 1.9x | |
| Rossell India ($ROSSELLIND) | 0.4x | 0.0x | 1.9x | 1.5x | |
| Bombay Burmah Trading Corp ($BBTC) | 4.2x | 3.0x | 1.8x | 1.0x | 0.7x |
| |
|---|
| Median (13 companies) | 1.6x | 1.7x | 1.8x | 0.7x | 1.6x |
|---|
| Ccl Products (India) ($CCL) | 3.7x | 2.6x | 2.3x | 1.7x | 1.1x |
