Bharat Rasayan reports 57.6% Net Income growth and 21.4% Revenue growth
29-05-2015 • About Bharat Rasayan (
$BHARATRA) • By InTwits
Bharat Rasayan reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bharat Rasayan has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.5%. At the same time it's a lot of higher than industry average of 10.7%.
- CAPEX is quite volatile: 134 in FY2015, 257 in FY2014, 778 in FY2013, 467 in FY2012, 28.4 in FY2011
- The company has highly profitable business model: ROIC is at 26.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bharat Rasayan ($BHARATRA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 938 | 1,419 | 1,876 | 3,614 | 4,388 | 21.4% |
| EBITDA | 70 | 181 | 279 | 659 | 815 | 23.7% |
| Net Income | 59 | 98 | 96 | 201 | 317 | 57.6% |
Balance Sheet
|
|---|
| Cash | 4 | 9 | 30 | 8 | 46 | 486.1% |
| Short Term Debt | 85 | 335 | 702 | 512 | 729 | 42.4% |
| Long Term Debt | 0 | 56 | 731 | 920 | 673 | -26.9% |
Cash flow
|
|---|
| Capex | 28 | 467 | 778 | 257 | 134 | -48.0% |
Ratios
|
|---|
| Revenue growth | -82.3% | 51.3% | 32.1% | 92.7% | 21.4% | |
| EBITDA growth | -21.4% | 158.5% | 54.0% | 136.2% | 23.7% | |
| EBITDA Margin | 7.5% | 12.8% | 14.9% | 18.2% | 18.6% | 0.3% |
| Net Income Margin | 6.3% | 6.9% | 5.1% | 5.6% | 7.2% | 1.7% |
| CAPEX, % of revenue | 3.0% | 32.9% | 41.5% | 7.1% | 3.0% | -4.1% |
| ROIC | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% | 4.2% |
| ROE | 13.6% | 20.3% | 16.6% | 27.8% | 32.5% | 4.7% |
| Net Debt/EBITDA | 1.2x | 2.1x | 5.0x | 2.2x | 1.7x | -0.5x |
Revenue and profitability
The company's Revenue surged on 21.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 14.7 pp from 67.6% to 82.4% in FY2015.
Net Income marign increased slightly on 1.7 pp from 5.6% to 7.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bharat Rasayan's CAPEX/Revenue was 3.0% in FY2015. The company showed big decline in CAPEX/Revenue of 29.9 pp from 32.9% in FY2012 to 3.0% in FY2015. It's average CAPEX/Revenue for the last three years was 17.2%.
Return on investment
The company operates at high and attractive ROIC (26.08%) and ROE (32.51%). ROIC increased on 4.2 pp from 21.9% to 26.1% in FY2015. ROE increased on 4.7 pp from 27.8% to 32.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.5x from 2.2x to 1.7x in FY2015. Debt decreased on 2.1% in FY2015 while cash jumped on 486% in FY2015.
Valuation
Bharat Rasayan's trades at EV/EBITDA 5.7x and P/E 10.3x while industy averages are 10.5x and 26.1x. Bharat Rasayan's EV/(EBITDA-CAPEX) is 6.8x with the industry average at 4.7x.
Appendix 1: Peers in
Below you can find Bharat Rasayan benchmarking vs. other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | | 6.5% | -14.4% | -1.2% | 49.3% |
| Indbulbbph ($INDBULBBPH) | | -3.2% | -6.5% | 33.5% | 49.2% |
| Monetbbph ($MONETBBPH) | | 22.3% | 3.7% | 11.6% | 40.8% |
| Asleyf ($ASLEYF) | | 15.5% | -3.3% | -8.0% | 33.6% |
| Jklakbbph ($JKLAKBBPH) | | 29.9% | 19.6% | 0.0% | 12.2% |
| |
|---|
| Median (15 companies) | -48.2% | 17.4% | 8.5% | 3.5% | 8.4% |
|---|
| Bharat Rasayan ($BHARATRA) | | 51.3% | 32.1% | 92.7% | 21.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | | | | | 53.4% |
| Paushak ($PAUSHAK) | | | | | 25.6% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 24.7% |
| Indbulbbph ($INDBULBBPH) | 27.9% | 36.7% | 34.6% | 29.5% | 23.5% |
| Uplbbph ($UPLBBPH) | 18.8% | 18.2% | 18.3% | 18.8% | 20.0% |
| |
|---|
| Median (19 companies) | 14.8% | 15.4% | 11.3% | 14.5% | 10.7% |
|---|
| Bharat Rasayan ($BHARATRA) | 7.5% | 12.8% | 14.9% | 18.2% | 18.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 9.6% | 131.4% | 5.2% | 139.2% | 89.2% |
| Jklakbbph ($JKLAKBBPH) | 23.6% | 28.5% | 28.8% | 24.6% | 23.6% |
| Rilbbph ($RILBBPH) | 12.7% | 4.6% | 7.7% | 13.8% | 16.9% |
| Gkw ($GKW) | | | | | 15.5% |
| Paushak ($PAUSHAK) | | | | | 12.3% |
| |
|---|
| Median (16 companies) | 7.1% | 8.6% | 5.2% | 3.6% | 5.2% |
|---|
| Bharat Rasayan ($BHARATRA) | 3.0% | 32.9% | 41.5% | 7.1% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uplbbph ($UPLBBPH) | 16.3% | 17.1% | 15.9% | 18.2% | 22.1% |
| Ginni Filaments ($GINNIFIL) | 11.6% | -1.0% | 15.2% | 21.6% | 12.8% |
| Rane Brake Lining ($RANEBRAKE) | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% |
| Asleyf ($ASLEYF) | 13.6% | 12.2% | 5.8% | -0.5% | 7.6% |
| Jklakbbph ($JKLAKBBPH) | 8.4% | 12.4% | 14.2% | 5.9% | 7.3% |
| |
|---|
| Median (25 companies) | 10.9% | 8.4% | 5.8% | 5.3% | 1.3% |
|---|
| Bharat Rasayan ($BHARATRA) | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 5.3x | 9.8x | 16.3x | 27.4x | 140.3x |
| Indbulbbph ($INDBULBBPH) | 8.5x | 4.3x | 4.8x | 5.5x | 9.6x |
| Jklakbbph ($JKLAKBBPH) | 3.0x | 2.1x | 2.3x | 5.3x | 5.5x |
| Asleyf ($ASLEYF) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Rane Engine Valve ($RANENGIN) | 1.7x | 2.1x | 11.3x | 4.5x | 4.8x |
| |
|---|
| Median (14 companies) | 1.8x | 2.1x | 2.2x | 2.7x | 3.7x |
|---|
| Bharat Rasayan ($BHARATRA) | 1.2x | 2.1x | 5.0x | 2.2x | 1.7x |
