Uflex revenue growth decelerated from 13.1% in FY2014 to 10.3% in FY2015
28-05-2015 • About Uflex (
$UFLEX) • By InTwits
Uflex reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.9% in FY2015, 12.3% in FY2014, 14.0% in FY2013, 15.3% in FY2012, 34.2% in FY2011
- Uflex has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.6%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 2,238 in FY2015, 1,935 in FY2014, 5,851 in FY2013, 10,097 in FY2012, 5,450 in FY2011
- The company has business model with low profitability: ROIC is at 8.4%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Uflex ($UFLEX) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34,022 | 43,871 | 49,564 | 56,033 | 61,803 | 10.3% |
| EBITDA | 11,645 | 6,693 | 6,941 | 6,883 | 7,350 | 6.8% |
| Net Income | 6,980 | 2,550 | 1,904 | 2,016 | 2,548 | 26.3% |
Balance Sheet
|
|---|
| Cash | 2,344 | 1,548 | 1,495 | 1,886 | 1,855 | -1.6% |
| Short Term Debt | 4,586 | 7,891 | 9,482 | 10,873 | 12,035 | 10.7% |
| Long Term Debt | 9,527 | 11,462 | 13,012 | 13,288 | 10,065 | -24.3% |
Cash flow
|
|---|
| Capex | 5,450 | 10,097 | 5,851 | 1,935 | 2,238 | 15.6% |
Ratios
|
|---|
| Revenue growth | -55.5% | 28.9% | 13.0% | 13.1% | 10.3% | |
| EBITDA growth | 164.4% | -42.5% | 3.7% | -0.8% | 6.8% | |
| EBITDA Margin | 34.2% | 15.3% | 14.0% | 12.3% | 11.9% | -0.4% |
| Net Income Margin | 20.5% | 5.8% | 3.8% | 3.6% | 4.1% | 0.5% |
| CAPEX, % of revenue | 16.0% | 23.0% | 11.8% | 3.5% | 3.6% | 0.2% |
| ROIC | 33.1% | 12.5% | 9.9% | 8.1% | 8.4% | 0.3% |
| ROE | 47.9% | 12.3% | 8.0% | 7.6% | 8.7% | 1.2% |
| Net Debt/EBITDA | 1.0x | 2.7x | 3.0x | 3.2x | 2.8x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 10.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 28.9% to 33.1% in FY2015.
Net Income marign increased slightly on 0.52 pp from 3.6% to 4.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Uflex had CAPEX/Revenue of 3.6%. CAPEX/Revenue dropped on 19.4 pp from 23.0% in FY2012 to 3.6% in FY2015. Average CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at low ROIC (8.43%) and ROE (8.74%). ROIC showed almost no change in FY2015. ROE increased slightly on 1.2 pp from 7.6% to 8.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.0x. Net Debt / EBITDA dropped on 0.5x from 3.2x to 2.8x in FY2015. Debt decreased on 8.5% in FY2015 while cash decreased slightly on 1.6% in FY2015.
Appendix 1: Peers in Containers & Packaging
Below we provide Uflex benchmarking against other companies in Containers & Packaging 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 |
|---|
| Neo Corp International ($NEOCORP) | -63.2% | 36.7% | 45.2% | 56.4% | |
| Gopala Polyplast ($GOPALA) | -42.9% | -1.7% | 17.0% | 29.6% | |
| Shree Rama Multi-Tech ($SHREERAMA) | | -25.0% | 18.2% | 23.3% | 2.4% |
| Shri Jagdamba Polymers ($SHRJAGP) | -66.8% | 35.5% | 38.3% | 21.7% | |
| Time Technoplast ($TIMETECHNO) | -58.8% | 19.8% | 17.6% | 21.6% | |
| |
|---|
| Median (19 companies) | -49.0% | 14.8% | 16.9% | 14.1% | 8.5% |
|---|
| Uflex ($UFLEX) | | 28.9% | 13.0% | 13.1% | 10.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manaksia ($MANAKSIA) | 16.5% | 14.4% | 17.4% | 20.3% | 18.6% |
| Essel Propack ($ESSELPRO) | 17.8% | 17.0% | 17.4% | 16.9% | 17.2% |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 17.8% | 15.4% | 9.3% | 12.2% | 12.1% |
| Kanpur Plastipack ($KANPRPLA) | 9.3% | 13.0% | 13.2% | | 11.9% |
| Shree Rama Multi-Tech ($SHREERAMA) | 16.4% | 3.3% | 11.3% | | 8.6% |
| |
|---|
| Median (11 companies) | 11.5% | 12.9% | 10.6% | 11.4% | 6.9% |
|---|
| Uflex ($UFLEX) | 34.2% | 15.3% | 14.0% | 12.3% | 11.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Essel Propack ($ESSELPRO) | 7.9% | 10.0% | 6.7% | 8.5% | 9.4% |
| Piramal Glass ($PIRAMGLAS) | 12.6% | 20.7% | 6.0% | 7.7% | |
| Control Print ($CONTROLPR) | | 3.0% | 5.0% | 7.5% | |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 21.7% | 75.5% | 25.0% | 6.7% | 0.4% |
| Time Technoplast ($TIMETECHNO) | 18.5% | 17.9% | 11.1% | 6.2% | |
| |
|---|
| Median (6 companies) | 9.0% | 8.6% | 6.4% | 7.1% | 6.5% |
|---|
| Uflex ($UFLEX) | 16.0% | 23.0% | 11.8% | 3.5% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | | 19.7% | 22.2% | |
| Manaksia ($MANAKSIA) | 12.7% | 12.9% | 15.5% | 16.0% | 11.4% |
| Neo Corp International ($NEOCORP) | 17.4% | 14.9% | 13.7% | 15.7% | |
| Kg Petrochem ($KGPETRO) | 5.0% | 10.8% | 10.1% | 14.3% | |
| Hitech Plast ($HITECHPLAS) | 18.1% | 13.8% | 12.6% | 14.0% | |
| |
|---|
| Median (32 companies) | 8.4% | 9.1% | 9.9% | 12.0% | 11.4% |
|---|
| Uflex ($UFLEX) | 33.1% | 12.5% | 9.9% | 8.1% | 8.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Union Quality Plastics ($UNQTYMI) | | | 14.9x | 12.9x | 0.0x |
| Hindusthan National Glass & Industries ($HINDNATGLS) | 2.1x | 7.4x | 15.8x | 11.2x | 10.6x |
| Piramal Glass ($PIRAMGLAS) | 3.0x | 3.1x | 4.1x | 4.3x | |
| Kg Petrochem ($KGPETRO) | 6.2x | 3.3x | 3.6x | 3.4x | |
| Neo Corp International ($NEOCORP) | 3.6x | 3.5x | 3.2x | 3.1x | |
| |
|---|
| Median (18 companies) | 3.2x | 3.2x | 3.5x | 0.9x | 0.0x |
|---|
| Uflex ($UFLEX) | 1.0x | 2.7x | 3.0x | 3.2x | 2.8x |
