Plastiblends India reports 10.3% Net Income growth and almost no change in EBITDA Margin of 10.3%
26-05-2015 • About Plastiblends India (
$PLASTIBLEN) • By InTwits
Plastiblends India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Plastiblends India has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 12.1%.
- CAPEX is quite volatile: 198 in FY2015, 40.8 in FY2014, 78.3 in FY2013, 72.4 in FY2012, 32.8 in FY2011
- The company has highly profitable business model: ROIC is at 24.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Plastiblends India ($PLASTIBLEN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,769 | 3,411 | 4,090 | 4,658 | 4,944 | 6.1% |
| EBITDA | 291 | 322 | 314 | 475 | 508 | 6.8% |
| Net Income | 185 | 167 | 154 | 272 | 301 | 10.3% |
Balance Sheet
|
|---|
| Cash | 3 | 14 | 8 | 32 | 23 | -28.1% |
| Short Term Debt | 324 | 329 | 432 | 249 | 203 | -18.6% |
| Long Term Debt | 151 | 163 | 144 | 61 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 33 | 72 | 78 | 41 | 198 | 384.7% |
Ratios
|
|---|
| Revenue growth | -52.4% | 23.2% | 19.9% | 13.9% | 6.1% | |
| EBITDA growth | 49.1% | 10.6% | -2.4% | 51.5% | 6.8% | |
| EBITDA Margin | 10.5% | 9.4% | 7.7% | 10.2% | 10.3% | 0.1% |
| Net Income Margin | 6.7% | 4.9% | 3.8% | 5.8% | 6.1% | 0.2% |
| CAPEX, % of revenue | 1.2% | 2.1% | 1.9% | 0.9% | 4.0% | 3.1% |
| ROIC | 19.4% | 18.3% | 15.8% | 24.0% | 24.5% | 0.5% |
| ROE | 20.9% | 16.5% | 13.7% | 21.5% | 20.4% | -1.1% |
| Net Debt/EBITDA | 1.6x | 1.5x | 1.8x | 0.6x | 0.4x | -0.2x |
Revenue and profitability
Plastiblends India's Revenue increased on 6.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 3.2% to -0.99% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.0%. Plastiblends India showed small growth in CAPEX/Revenue of 1.9 pp from 2.1% in FY2012 to 4.0% in FY2015. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at high and attractive ROIC (24.47%) and ROE (20.42%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.1 pp from 21.5% to 20.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.2x from 0.6x to 0.4x in FY2015. Debt dropped on 34.7% in FY2015 while cash dropped on 28.1% in FY2015.
Valuation
Plastiblends India's trades at EV/EBITDA 5.8x and P/E 9.2x while industy averages are 10.5x and 26.1x. Plastiblends India's EV/(EBITDA-CAPEX) is 9.4x with the industry average at 4.7x.
Appendix 1: Peers in Specialty Chemicals
Below we provide Plastiblends India 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 ($VINATIORGA) | | 38.7% | 23.6% | 25.9% | 10.9% |
| |
|---|
| Median (27 companies) | -49.4% | 19.8% | 11.4% | 11.3% | 9.8% |
|---|
| Plastiblends India ($PLASTIBLEN) | | 23.2% | 19.9% | 13.9% | 6.1% |
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 ($ANILLTD) | 17.4% | 18.1% | 16.9% | 17.1% | |
| |
|---|
| Median (25 companies) | 11.7% | 10.7% | 12.8% | 10.6% | 15.9% |
|---|
| Plastiblends India ($PLASTIBLEN) | 10.5% | 9.4% | 7.7% | 10.2% | 10.3% |
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 ($CAMLINFIN) | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% |
| |
|---|
| Median (18 companies) | 7.3% | 5.2% | 4.7% | 4.5% | 5.1% |
|---|
| Plastiblends India ($PLASTIBLEN) | 1.2% | 2.1% | 1.9% | 0.9% | 4.0% |
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% |
| Keltech Energies ($KELENRG) | 11.5% | 15.3% | 12.8% | 23.0% | |
| |
|---|
| Median (35 companies) | 14.8% | 14.7% | 14.8% | 11.2% | 22.4% |
|---|
| Plastiblends India ($PLASTIBLEN) | 19.4% | 18.3% | 15.8% | 24.0% | 24.5% |
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 ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.0x |
|---|
| Plastiblends India ($PLASTIBLEN) | 1.6x | 1.5x | 1.8x | 0.6x | 0.4x |
