Glenmark Pharmaceuticals CAPEX surged on 44.5% in 2015 and Revenue surged on 10.4%
29-05-2015 • About Glenmark Pharmaceuticals (
$GLENMARK) • By InTwits
Glenmark Pharmaceuticals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Glenmark Pharmaceuticals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's in pair with industry average of 10.1%.
- CAPEX is quite volatile: 2,272 in FY2015, 3,747 in FY2014, 3,885 in FY2013, 2,452 in FY2012, 1,452 in FY2011
- The company has highly profitable business model: ROIC is at 13.0%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Glenmark Pharmaceuticals ($GLENMARK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 29,491 | 40,206 | 50,123 | 60,052 | 66,298 | 10.4% |
| EBITDA | 5,923 | 7,143 | 10,485 | 11,004 | 11,939 | 8.5% |
| Net Income | 4,532 | 4,603 | 6,200 | 5,423 | 4,753 | -12.3% |
Balance Sheet
|
|---|
| Cash | 1,949 | 3,201 | 6,052 | 7,948 | 7,637 | -3.9% |
| Short Term Debt | 14,914 | 9,320 | 8,446 | 8,383 | 12,256 | 46.2% |
| Long Term Debt | 6,202 | 13,125 | 19,203 | 24,287 | 25,744 | 6.0% |
Cash flow
|
|---|
| Capex | 4,012 | 2,854 | 4,710 | 3,766 | 5,443 | 44.5% |
Ratios
|
|---|
| Revenue growth | -64.0% | 36.3% | 24.7% | 19.8% | 10.4% | |
| EBITDA growth | -12.0% | 20.6% | 46.8% | 4.9% | 8.5% | |
| EBITDA Margin | 20.1% | 17.8% | 20.9% | 18.3% | 18.0% | -0.3% |
| Net Income Margin | 15.4% | 11.4% | 12.4% | 9.0% | 7.2% | -1.9% |
| CAPEX, % of revenue | 13.6% | 7.1% | 9.4% | 6.3% | 8.2% | 1.9% |
| ROIC | 11.7% | 14.4% | 17.7% | 13.8% | 13.0% | -0.8% |
| ROE | 20.6% | 20.7% | 24.0% | 18.9% | 15.9% | -3.0% |
| Net Debt/EBITDA | 3.2x | 2.7x | 2.1x | 2.2x | 2.5x | 0.3x |
Revenue and profitability
The company's Revenue jumped on 10.4% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign decreased slightly on 1.9 pp from 9.0% to 7.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.2% in FY2015. Glenmark Pharmaceuticals's CAPEX/Revenue increased slightly on 1.1 pp from 7.1% in FY2012 to 8.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.0%.
Return on investment
The company operates at good ROIC (13.01%) and ROE (15.89%). ROIC decreased slightly on 0.84 pp from 13.8% to 13.0% in FY2015. ROE decreased on 3.0 pp from 18.9% to 15.9% in FY2015.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 2.2x to 2.5x in FY2015. Debt jumped on 16.3% in FY2015 while cash decreased on 3.9% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Glenmark Pharmaceuticals benchmarking against other companies in Pharmaceuticals 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 |
|---|
| 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 ($SUNPHARMA) | | 39.9% | 40.4% | 42.4% | 70.2% |
| Torrent Pharmaceuticals ($TORNTPHARM) | | 22.7% | 17.7% | 32.2% | 13.6% |
| Abbott India ($ABBOTINDIA) | | 8.2% | 8.7% | 27.3% | 2.6% |
| |
|---|
| Median (41 companies) | -37.4% | 16.6% | 14.7% | 12.6% | 10.4% |
|---|
| Glenmark Pharmaceuticals ($GLENMARK) | | 36.3% | 24.7% | 19.8% | 10.4% |
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% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 34.3% | 40.8% | 44.3% | 44.9% | 29.2% |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | 26.2% |
| Dr.Reddy'S Laboratories ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| |
|---|
| Median (39 companies) | 16.2% | 12.7% | 12.8% | 14.3% | 13.8% |
|---|
| Glenmark Pharmaceuticals ($GLENMARK) | 20.1% | 17.8% | 20.9% | 18.3% | 18.0% |
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 ($GRANULES) | 5.3% | 8.8% | 15.2% | 24.3% | 11.4% |
| |
|---|
| Median (27 companies) | 7.3% | 8.2% | 7.5% | 5.7% | 6.2% |
|---|
| Glenmark Pharmaceuticals ($GLENMARK) | 13.6% | 7.1% | 9.4% | 6.3% | 8.2% |
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% | 23.0% |
| 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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| |
|---|
| Median (63 companies) | 14.0% | 13.7% | 13.2% | 15.6% | 14.9% |
|---|
| Glenmark Pharmaceuticals ($GLENMARK) | 11.7% | 14.4% | 17.7% | 13.8% | 13.0% |
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 ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | 2.4x |
| |
|---|
| Median (50 companies) | 1.5x | 1.4x | 1.2x | 0.3x | 0.6x |
|---|
| Glenmark Pharmaceuticals ($GLENMARK) | 3.2x | 2.7x | 2.1x | 2.2x | 2.5x |
