Ultramarine & Pigments Net Income surged on 30.2% in 2015 and EBITDA Margin showed almost no change
27-05-2015 • About Ultramarine & Pigments (
$ULTRAMAR) • By InTwits
Ultramarine & Pigments reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ultramarine & Pigments has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 28.3 in FY2015, 51.8 in FY2014, 35.5 in FY2013, 103 in FY2012, 139 in FY2011
- The company has highly profitable business model: ROIC is at 25.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ultramarine & Pigments ($ULTRAMAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,178 | 1,360 | 1,402 | 1,502 | 1,716 | 14.2% |
| EBITDA | 237 | 245 | 218 | 261 | 294 | 12.7% |
| Net Income | 170 | 137 | 121 | 144 | 187 | 30.2% |
Balance Sheet
|
|---|
| Cash | 137 | 44 | 45 | 42 | 145 | 245.9% |
| Short Term Debt | 17 | 38 | 41 | 20 | 0 | -100.0% |
| Long Term Debt | 60 | 58 | 20 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 139 | 103 | 36 | 52 | 28 | -45.3% |
Ratios
|
|---|
| Revenue growth | -41.0% | 15.5% | 3.0% | 7.2% | 14.2% | |
| EBITDA growth | 22.4% | 3.6% | -11.3% | 20.1% | 12.7% | |
| EBITDA Margin | 20.1% | 18.0% | 15.5% | 17.4% | 17.2% | -0.2% |
| Net Income Margin | 14.4% | 10.1% | 8.7% | 9.6% | 10.9% | 1.3% |
| CAPEX, % of revenue | 11.8% | 7.6% | 2.5% | 3.4% | 1.7% | -1.8% |
| ROIC | 22.8% | 20.0% | 16.3% | 20.8% | 25.7% | 4.9% |
| ROE | 22.7% | 17.1% | 14.4% | 16.1% | 19.6% | 3.4% |
| Net Debt/EBITDA | -0.3x | 0.2x | 0.1x | -0.1x | -0.5x | -0.4x |
Revenue and profitability
The company's Revenue surged on 14.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 3.8% to 5.6% in FY2015.
Net Income marign increased slightly on 1.3 pp from 9.6% to 10.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Ultramarine & Pigments had CAPEX/Revenue of 1.7%. Ultramarine & Pigments showed decline in CAPEX/Revenue of 5.9 pp from 7.6% in FY2012 to 1.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at high and attractive ROIC (25.68%) while ROE is a bit lower (19.55%). ROIC increased on 4.9 pp from 20.8% to 25.7% in FY2015. ROE increased on 3.4 pp from 16.1% to 19.6% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash jumped on 246% in FY2015.
Valuation
The company's trades at EV/EBITDA 6.4x and P/E 10.9x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 7.1x with the industry average at 4.7x.
Appendix 1: Peers in Specialty Chemicals
Below you can find Ultramarine & Pigments benchmarking vs. other companies in Specialty Chemicals 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 |
|---|
| 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) | | 10.5% | 9.1% | 28.2% | 8.3% |
| Vinati Organics ($VINATIORGA) | | 38.7% | 23.6% | 25.9% | 10.9% |
| |
|---|
| Median (27 companies) | -51.4% | 20.9% | 14.1% | 13.7% | 9.8% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | | 15.5% | 3.0% | 7.2% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.7% | 21.8% | 22.7% | 24.9% |
| Indian Toners & Developers ($INDTONER) | | | | | 22.6% |
| Solar Industries India ($SOLARINDS) | 18.1% | 18.5% | 17.5% | 17.9% | 19.3% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% |
| Adi Finechem ($ADIFINCHM) | 18.2% | 15.1% | 14.0% | 22.1% | 16.5% |
| |
|---|
| Median (20 companies) | 11.2% | 10.6% | 11.2% | 10.6% | 13.0% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 20.1% | 18.0% | 15.5% | 17.4% | 17.2% |
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 ($CAMLINFIN) | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% |
| |
|---|
| Median (18 companies) | 7.0% | 4.9% | 4.7% | 4.5% | 4.9% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 11.8% | 7.6% | 2.5% | 3.4% | 1.7% |
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% |
| Plastiblends India ($PLASTIBLEN) | 19.4% | 18.3% | 15.8% | 24.0% | 24.5% |
| |
|---|
| Median (35 companies) | 14.8% | 14.7% | 14.8% | 11.2% | 18.4% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 22.8% | 20.0% | 16.3% | 20.8% | 25.7% |
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 ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
| |
|---|
| Median (28 companies) | 1.5x | 1.5x | 1.7x | 1.7x | 0.2x |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | -0.3x | 0.2x | 0.1x | -0.1x | -0.5x |
