Renaissance Jewellery EBITDA surged on 21.7% in 2015 and Revenue increased on 3.8%
26-05-2015 • About Renaissance Jewellery (
$RJL) • By InTwits
Renaissance Jewellery reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 5.8% in FY2015, 5.0% in FY2014, 4.5% in FY2013, 10.3% in FY2012, 5.1% in FY2011.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Renaissance Jewellery ($RJL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,623 | 9,516 | 9,519 | 12,222 | 12,682 | 3.8% |
| EBITDA | 439 | 979 | 431 | 606 | 738 | 21.7% |
| Net Income | 306 | 335 | 148 | 295 | 402 | 36.2% |
Balance Sheet
|
|---|
| Cash | 527 | 315 | 433 | | 544 | |
| Short Term Debt | 2,829 | 2,733 | 2,419 | | 2,719 | |
| Long Term Debt | 0 | 0 | 0 | | 0 | |
Cash flow
|
|---|
| Capex | 154 | 208 | | | | |
Ratios
|
|---|
| Revenue growth | -41.8% | 10.4% | 0.0% | 28.4% | 3.8% | |
| EBITDA growth | 20.9% | 122.8% | -56.0% | 40.7% | 21.7% | |
| EBITDA Margin | 5.1% | 10.3% | 4.5% | 5.0% | 5.8% | 0.9% |
| Net Income Margin | 3.6% | 3.5% | 1.6% | 2.4% | 3.2% | 0.8% |
| CAPEX, % of revenue | 1.8% | 2.2% | | | | 0.0% |
| ROIC | 8.2% | 15.7% | 5.7% | | | 0.0% |
| ROE | 12.1% | 11.6% | 4.6% | | | 0.0% |
| Net Debt/EBITDA | 5.2x | 2.5x | 4.6x | 0.0x | 2.9x | 2.9x |
Revenue and profitability
Renaissance Jewellery's Revenue increased on 3.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.86 pp from 5.0% to 5.8% in FY2015.
Net Income marign increased slightly on 0.75 pp from 2.4% to 3.2% in FY2015.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA jumped2.9x from 0x to 2.9x in FY2015. Debt jumped while cash surged.
Valuation
The company's trades at EV/EBITDA 5.2x and P/E 4.1x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Other Apparels & Accessories
Below we provide Renaissance Jewellery benchmarking against other companies in Other Apparels & Accessories 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 |
|---|
| 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 ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -9.3% | 10.1% | 19.5% | 14.1% | 6.4% |
|---|
| Renaissance Jewellery ($RJL) | | 10.4% | 0.0% | 28.4% | 3.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arrow Textiles ($ARROWTEX) | | | | | 25.2% |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | 13.7% |
| Cantabil Retail India ($CANTABIL) | 13.8% | -10.4% | -22.3% | | 10.4% |
| Bhartiya International ($BIL) | 10.6% | 11.4% | 9.2% | 8.9% | 9.5% |
| |
|---|
| Median (15 companies) | 8.7% | 7.5% | 6.1% | 6.1% | 5.6% |
|---|
| Renaissance Jewellery ($RJL) | 5.1% | 10.3% | 4.5% | 5.0% | 5.8% |
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 ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| |
|---|
| Median (15 companies) | 1.9% | 1.5% | 1.3% | 1.1% | 0.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($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) | 10.4% | 9.3% | 7.2% | 10.9% | 8.2% |
|---|
| Renaissance Jewellery ($RJL) | 8.2% | 15.7% | 5.7% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | 61.2x |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (24 companies) | 2.7x | 2.2x | 2.7x | 0.3x | 1.7x |
|---|
| Renaissance Jewellery ($RJL) | 5.2x | 2.5x | 4.6x | 0.0x | 2.9x |
