Tamil Nadu Newsprint & Papers CAPEX jumped on 498% in 2015 while Revenue decreased on 6.5%
28-05-2015 • About Tamil Nadu Newsprint & Papers (
$TNPL) • By InTwits
Tamil Nadu Newsprint & Papers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tamil Nadu Newsprint & Papers is a company in decline: FY2015 revenue growth was -6.5%, 5 years revenue CAGR was -4.1%
- Tamil Nadu Newsprint & Papers has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.7%. At the same time it's in pair with industry average of 27.5%.
- CAPEX is quite volatile: 7,518 in FY2015, 1,258 in FY2014, 1,935 in FY2013, 2,884 in FY2012, 2,857 in FY2011
- The company has highly profitable business model: ROIC is at 12.7%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tamil Nadu Newsprint & Papers ($TNPL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,085 | 15,229 | 18,613 | 22,852 | 21,357 | -6.5% |
| SG&A | | | | | 36 | |
| EBITDA | 3,161 | 3,195 | 4,133 | 5,143 | 5,116 | -0.5% |
| Net Income | 1,490 | 1,089 | 915 | 1,612 | 1,667 | 3.4% |
Balance Sheet
|
|---|
| Cash | 116 | 190 | 238 | 115 | 203 | 77.4% |
| Short Term Debt | 6,504 | 8,600 | 8,429 | 8,381 | 6,965 | -16.9% |
| Long Term Debt | 8,377 | 8,738 | 6,573 | 6,370 | 13,692 | 114.9% |
Cash flow
|
|---|
| Capex | 2,857 | 2,884 | 1,935 | 1,258 | 7,518 | 497.6% |
Ratios
|
|---|
| Revenue growth | -54.0% | 26.0% | 22.2% | 22.8% | -6.5% | |
| EBITDA growth | 13.1% | 1.1% | 29.4% | 24.4% | -0.5% | |
| EBITDA Margin | 26.2% | 21.0% | 22.2% | 22.5% | 24.0% | 1.4% |
| Net Income Margin | 12.3% | 7.2% | 4.9% | 7.1% | 7.8% | 0.8% |
| SG&A, % of revenue | | | | | 0.2% | 0.2% |
| CAPEX, % of revenue | 23.6% | 18.9% | 10.4% | 5.5% | 35.2% | 29.7% |
| ROIC | 7.6% | 5.3% | 8.2% | 11.1% | 12.7% | 1.6% |
| ROE | 17.3% | 11.5% | 9.1% | 14.8% | 14.2% | -0.6% |
| Net Debt/EBITDA | 4.7x | 5.4x | 3.6x | 2.8x | 4.0x | 1.2x |
Revenue and profitability
The company's Revenue decreased on 6.5% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 22.5% to 24.0% in FY2015.
Net Income marign increased slightly on 0.75 pp from 7.1% to 7.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 35.2% in FY2015. CAPEX/Revenue surged on 16.3 pp from 18.9% in FY2012 to 35.2% in FY2015. It's average CAPEX/Revenue for the last three years was 17.0%.Tamil Nadu Newsprint & Papers has spent a lot to CAPEX (147% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at good ROIC (12.74%) and ROE (14.20%). ROIC increased slightly on 1.6 pp from 11.1% to 12.7% in FY2015. ROE decreased slightly on 0.57 pp from 14.8% to 14.2% in FY2015.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA jumped on 1.2x from 2.8x to 4.0x in FY2015. Debt surged on 40.0% in FY2015 while cash jumped on 77.4% in FY2015.
Appendix 1: Peers in Paper & Paper Products
Below we provide Tamil Nadu Newsprint & Papers benchmarking against other companies in Paper & Paper Products 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 |
|---|
| Yash Papers ($YASHPPR) | | 9.0% | -3.6% | 39.5% | 17.3% |
| Malu Paper Mills ($MALUPAPER) | | 0.3% | 4.9% | 22.6% | 6.0% |
| Jk Paper ($JKPAPER) | | 7.9% | 9.4% | 18.5% | 24.3% |
| Shreyans Industries ($SHREYANIND) | | 7.8% | 24.4% | 17.3% | -8.8% |
| Kuantum Papers ($KUANTUM) | | 22.1% | 11.9% | 14.4% | 3.9% |
| |
|---|
| Median (14 companies) | -43.6% | 8.6% | 4.7% | 7.5% | 3.9% |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | | 26.0% | 22.2% | 22.8% | -6.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South India Paper Mills ($STHINPA) | 14.9% | 13.5% | 16.1% | 10.2% | 15.8% |
| Yash Papers ($YASHPPR) | 15.6% | 15.7% | 16.8% | 16.0% | 15.7% |
| Kuantum Papers ($KUANTUM) | 15.1% | 11.2% | 14.2% | 15.9% | 12.7% |
| Emami Paper Mills ($EMAMIPAP) | 15.1% | 13.3% | 15.0% | 14.5% | 11.4% |
| Jk Paper ($JKPAPER) | 21.1% | 12.1% | 9.5% | 9.3% | 11.4% |
| |
|---|
| Median (9 companies) | 12.1% | 11.6% | 11.8% | 13.2% | 11.4% |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | 26.2% | 21.0% | 22.2% | 22.5% | 24.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emami Paper Mills ($EMAMIPAP) | 5.0% | 24.4% | 7.3% | 19.2% | 89.3% |
| Jk Paper ($JKPAPER) | 10.1% | 47.6% | 59.5% | 15.9% | 4.2% |
| Tcpl Packaging ($TCPLPACK) | 12.1% | 18.3% | 8.6% | 11.1% | |
| |
|---|
| Median (3 companies) | 5.3% | 11.3% | 8.6% | 15.9% | 46.8% |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | 23.6% | 18.9% | 10.4% | 5.5% | 35.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tcpl Packaging ($TCPLPACK) | 13.3% | 15.4% | 17.4% | 16.9% | |
| Yash Papers ($YASHPPR) | 7.3% | 8.3% | 8.3% | 11.5% | |
| Emami Paper Mills ($EMAMIPAP) | | 5.8% | 5.9% | 5.4% | 3.0% |
| Jk Paper ($JKPAPER) | 15.4% | 5.2% | 2.7% | 1.1% | 4.3% |
| Rama Pulp & Papers ($RAMAPULP) | | | 10.8% | | |
| |
|---|
| Median (21 companies) | 6.8% | 8.3% | 9.4% | 8.5% | 3.6% |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | 7.6% | 5.3% | 8.2% | 11.1% | 12.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jk Paper ($JKPAPER) | 2.0x | 6.8x | 12.7x | 14.1x | 8.6x |
| Emami Paper Mills ($EMAMIPAP) | 5.9x | 7.4x | 5.3x | 5.0x | 11.2x |
| Yash Papers ($YASHPPR) | 5.7x | 5.2x | 5.5x | 4.5x | 0.0x |
| Tcpl Packaging ($TCPLPACK) | 2.6x | 2.6x | 2.3x | 2.2x | |
| Rama Pulp & Papers ($RAMAPULP) | 0.1x | 0.8x | 1.1x | 0.0x | |
| |
|---|
| Median (14 companies) | 3.9x | 3.2x | 2.7x | 0.0x | 0.0x |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | 4.7x | 5.4x | 3.6x | 2.8x | 4.0x |
