Dishman Pharmaceuticals & Chemicals CAPEX dropped on 52.4% in 2015 while Revenue surged on 12.6%
28-05-2015 • About Dishman Pharmaceuticals & Chemicals (
$DISHMAN) • By InTwits
Dishman Pharmaceuticals & Chemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dishman Pharmaceuticals & Chemicals has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.9%. At the same time it's a lot of higher than industry average of 10.0%.
- CAPEX is quite volatile: 1,424 in FY2015, 2,992 in FY2014, 1,388 in FY2013, 949 in FY2012, 2,406 in FY2011
- The company has business model with low profitability: ROIC is at 7.5%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dishman Pharmaceuticals & Chemicals ($DISHMAN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,902 | 11,241 | 12,722 | 13,853 | 15,604 | 12.6% |
| EBITDA | 2,238 | 2,341 | 2,901 | 3,321 | 3,140 | -5.5% |
| Net Income | 800 | 568 | 1,003 | 1,093 | 1,198 | 9.6% |
Balance Sheet
|
|---|
| Cash | 369 | 179 | 165 | 295 | 241 | -18.3% |
| Short Term Debt | 4,242 | 3,376 | 3,306 | 3,787 | 6,025 | 59.1% |
| Long Term Debt | 4,443 | 5,121 | 4,336 | 4,121 | 3,302 | -19.9% |
Cash flow
|
|---|
| Capex | 2,406 | 949 | 1,388 | 2,992 | 1,424 | -52.4% |
Ratios
|
|---|
| Revenue growth | -47.3% | 13.5% | 13.2% | 8.9% | 12.6% | |
| EBITDA growth | 7.6% | 4.6% | 23.9% | 14.5% | -5.5% | |
| EBITDA Margin | 22.6% | 20.8% | 22.8% | 24.0% | 20.1% | -3.9% |
| Net Income Margin | 8.1% | 5.0% | 7.9% | 7.9% | 7.7% | -0.2% |
| CAPEX, % of revenue | 24.3% | 8.4% | 10.9% | 21.6% | 9.1% | -12.5% |
| ROIC | 9.2% | 8.7% | 11.2% | 11.3% | 7.5% | -3.8% |
| ROE | 9.6% | 6.3% | 10.2% | 9.9% | 9.9% | 0.0% |
| Net Debt/EBITDA | 3.7x | 3.6x | 2.6x | 2.3x | 2.9x | 0.6x |
Revenue and profitability
The company's Revenue surged on 12.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 24.0% to 20.1% 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 9.1%. CAPEX/Revenue increased slightly on 0.68 pp from 8.4% in FY2012 to 9.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 13.9%.
Return on investment
The company operates at low ROIC (7.52%) and ROE (9.91%). ROIC decreased on 3.8 pp from 11.3% to 7.5% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 3.0x. Net Debt / EBITDA jumped on 0.6x from 2.3x to 2.9x in FY2015. Debt surged on 18.0% in FY2015 while cash dropped on 18.3% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Dishman Pharmaceuticals & Chemicals benchmarking vs. other companies in Pharmaceuticals 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 |
|---|
| Granules India ($GRANULES) | | 37.6% | 16.9% | 43.4% | 18.1% |
| Marksans Pharma ($MARKSANS) | -66.6% | 16.7% | 23.3% | 43.3% | |
| Sun Pharmaceutical Industries ($SUNPHARMA) | -87.8% | 39.9% | 40.4% | 42.4% | |
| Torrent Pharmaceuticals ($TORNTPHARM) | | 22.7% | 17.7% | 32.2% | 13.6% |
| Abbott India ($ABBOTINDIA) | | 8.2% | 8.7% | 27.3% | 2.6% |
| |
|---|
| Median (41 companies) | -51.6% | 16.7% | 14.9% | 13.7% | 9.2% |
|---|
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | | 13.5% | 13.2% | 8.9% | 12.6% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | | | 52.1% | 57.4% | 57.6% |
| Omega Laboratories ($OMEGALAB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | | 46.9% | 26.1% | 28.7% | 28.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Divi'S Laboratories ($DIVISLAB) | 38.1% | 37.2% | 38.2% | 40.2% | 37.4% |
| Hester Biosciences ($HESTERBIO) | | | | | 32.9% |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | 26.2% |
| Dr.Reddy'S Laboratories ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| Claris Lifesciences ($CLARIS) | 33.6% | 34.7% | 27.6% | 21.1% | 22.7% |
| |
|---|
| Median (33 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 13.8% |
|---|
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 22.6% | 20.8% | 22.8% | 24.0% | 20.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Claris Lifesciences ($CLARIS) | 32.5% | 58.1% | 42.9% | | 103.1% |
| Wintac ($WINTAC) | | | | | 22.8% |
| Hester Biosciences ($HESTERBIO) | | | | | 21.5% |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | 14.1% |
| Granules India ($GRANULES) | 5.3% | 8.8% | 15.2% | 24.3% | 11.4% |
| |
|---|
| Median (23 companies) | 7.3% | 7.7% | 7.5% | 5.7% | 6.2% |
|---|
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 24.3% | 8.4% | 10.9% | 21.6% | 9.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alembic Pharmaceuticals ($APLLTD) | | 27.5% | 29.1% | 41.5% | 35.7% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 18.9% | 24.8% | 31.1% | 35.0% | |
| Marksans Pharma ($MARKSANS) | -25.8% | -142.4% | 34.9% | 33.8% | |
| Torrent Pharmaceuticals ($TORNTPHARM) | 22.3% | 26.4% | 30.5% | 33.2% | 19.7% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| |
|---|
| Median (63 companies) | 14.0% | 14.0% | 13.8% | 15.6% | 15.4% |
|---|
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 9.2% | 8.7% | 11.2% | 11.3% | 7.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ind-Swift Laboratories ($INDSWFTLAB) | 4.6x | 5.5x | 16.1x | 19.5x | 0.0x |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
| Sharon Bio-Medicine ($SHARONBIO) | 4.6x | 4.7x | 5.3x | 4.5x | |
| Jubilant Life Sciences Limited ($JUBILANT) | 5.3x | 4.0x | 3.5x | 3.5x | 6.4x |
| Kopran ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.5x | 1.4x | 1.2x | 0.3x | 0.6x |
|---|
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 3.7x | 3.6x | 2.6x | 2.3x | 2.9x |
