Jagran Prakashan reports 36.2% Net Income growth and 3.9% Revenue growth
29-05-2015 • About Jagran Prakashan (
$JAGRAN) • By InTwits
Jagran Prakashan reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jagran Prakashan has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 547 in FY2015, 902 in FY2014, 1,007 in FY2013, 1,522 in FY2012, 1,843 in FY2011
- The company has highly profitable business model: ROIC is at 20.8%
- It operates with high leverage: Net Debt/EBITDA is 0.1x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jagran Prakashan ($JAGRAN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,211 | 13,557 | 15,218 | 17,027 | 17,698 | 3.9% |
| EBITDA | 3,639 | 3,170 | 2,973 | 3,958 | 4,568 | 15.4% |
| Net Income | 2,078 | 1,783 | 2,551 | 2,262 | 3,080 | 36.2% |
Balance Sheet
|
|---|
| Cash | 236 | 451 | 517 | 243 | 4,927 | 1,929.4% |
| Short Term Debt | 1,561 | 1,915 | 1,738 | 1,969 | 3,527 | 79.1% |
| Long Term Debt | 358 | 4,761 | 3,102 | 2,927 | 1,952 | -33.3% |
Cash flow
|
|---|
| Capex | 1,843 | 1,522 | 1,007 | 902 | 547 | -39.4% |
Ratios
|
|---|
| Revenue growth | -43.9% | 11.0% | 12.3% | 11.9% | 3.9% | |
| EBITDA growth | | -12.9% | -6.2% | 33.2% | 15.4% | |
| EBITDA Margin | 29.8% | 23.4% | 19.5% | 23.2% | 25.8% | 2.6% |
| Net Income Margin | 17.0% | 13.2% | 16.8% | 13.3% | 17.4% | 4.1% |
| CAPEX, % of revenue | 15.1% | 11.2% | 6.6% | 5.3% | 3.1% | -2.2% |
| ROIC | | 19.7% | 11.3% | 19.7% | 20.8% | 1.1% |
| ROE | | 24.5% | 30.3% | 23.9% | 29.4% | 5.5% |
| Net Debt/EBITDA | 0.5x | 2.0x | 1.5x | 1.2x | 0.1x | -1.1x |
Revenue and profitability
Jagran Prakashan's Revenue increased on 3.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.5 pp from 17.5% to 20.0% in FY2015.
Net Income marign increased on 4.1 pp from 13.3% to 17.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Jagran Prakashan had CAPEX/Revenue of 3.1%. CAPEX/Revenue decreased on 8.1 pp from 11.2% in FY2012 to 3.1% in FY2015. For the last three years the average CAPEX/Revenue was 5.0%.
Return on investment
The company operates at high and attractive ROIC (20.84%) and ROE (29.39%). ROIC increased slightly on 1.1 pp from 19.7% to 20.8% in FY2015. ROE increased on 5.5 pp from 23.9% to 29.4% in FY2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 1.2x to 0.1x in FY2015. Debt jumped on 11.9% in FY2015 while cash surged on 1,929% in FY2015.
Appendix 1: Peers in Publishing
Below you can find Jagran Prakashan benchmarking vs. other companies in Publishing 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | | 44.4% | 39.8% | 27.2% | 27.9% |
| Hindustan Media Ventures ($HMVL) | | 15.6% | 6.6% | 14.7% | 12.2% |
| D B Corp ($DBCORP) | | 12.4% | 13.7% | 19.3% | 8.1% |
| Ht Media ($HTMEDIA) | | 15.0% | 2.3% | 7.4% | 4.0% |
| |
|---|
| Median (4 companies) | | 15.3% | 10.2% | 17.0% | 10.1% |
|---|
| Jagran Prakashan ($JAGRAN) | | 11.0% | 12.3% | 11.9% | 3.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 25.4% | 26.0% | 27.8% | 39.5% | 36.6% |
| Next Mediaworks ($NEXTMEDIA) | | | | | 31.4% |
| Sambhaav Media ($SAMBHAAV) | | | | | 30.7% |
| D B Corp ($DBCORP) | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% |
| Hindustan Media Ventures ($HMVL) | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% |
| |
|---|
| Median (7 companies) | 23.0% | 22.0% | 21.6% | 24.0% | 28.1% |
|---|
| Jagran Prakashan ($JAGRAN) | 29.8% | 23.4% | 19.5% | 23.2% | 25.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 10.7% | 8.9% | 10.0% | 4.5% | 11.5% |
| Ht Media ($HTMEDIA) | 4.5% | 3.8% | 6.4% | 6.9% | 4.1% |
| D B Corp ($DBCORP) | 11.8% | 8.9% | 3.6% | 5.5% | 3.6% |
| Hindustan Media Ventures ($HMVL) | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% |
| |
|---|
| Median (4 companies) | 8.2% | 8.3% | 5.0% | 5.7% | 3.8% |
|---|
| Jagran Prakashan ($JAGRAN) | 15.1% | 11.2% | 6.6% | 5.3% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| D B Corp ($DBCORP) | 33.4% | 25.7% | 25.8% | 32.7% | 32.9% |
| Just Dial ($JUSTDIAL) | 50.3% | 58.7% | 32.4% | 34.2% | 31.7% |
| Hindustan Media Ventures ($HMVL) | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% |
| Ht Media ($HTMEDIA) | 16.8% | 14.7% | 14.2% | 10.9% | 8.6% |
| Sambhaav Media ($SAMBHAAV) | 8.2% | 8.7% | 7.6% | | |
| |
|---|
| Median (7 companies) | 16.8% | 14.7% | 14.2% | 22.3% | 25.7% |
|---|
| Jagran Prakashan ($JAGRAN) | | 19.7% | 11.3% | 19.7% | 20.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.5x | 0.6x | 1.1x | 0.6x |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x |
| Cyber Media (India) ($CYBERMEDIA) | 4.8x | 4.1x | 6.8x | | 0.0x |
| Next Mediaworks ($NEXTMEDIA) | 11.9x | | 1.9x | 1.0x | 0.0x |
| Sambhaav Media ($SAMBHAAV) | 2.8x | 1.9x | 2.0x | | 0.0x |
| |
|---|
| Median (7 companies) | 0.5x | 0.2x | 0.6x | 0.0x | 0.0x |
|---|
| Jagran Prakashan ($JAGRAN) | 0.5x | 2.0x | 1.5x | 1.2x | 0.1x |
