Kopran reports 328% Net Income decline and 4.3 pp EBITDA Margin decline from 14.1% to 9.8%
29-05-2015 • About Kopran (
$KOPRAN) • By InTwits
Kopran reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kopran has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 160 in FY2015, 55.6 in FY2014, 102 in FY2013, 36.0 in FY2012, 58.2 in FY2011
- The company has business model with average profitability: ROIC is at 10.6%
- It operates with high leverage: Net Debt/EBITDA is 2.4x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kopran ($KOPRAN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,854 | 1,989 | 2,502 | 3,028 | 3,257 | 7.6% |
| EBITDA | 181 | 211 | 337 | 426 | 318 | -25.3% |
| Net Income | 45 | 53 | 111 | 172 | -391 | -327.8% |
Balance Sheet
|
|---|
| Cash | 9 | 72 | 6 | 8 | 6 | -28.5% |
| Short Term Debt | 361 | 386 | 334 | 655 | 633 | -3.5% |
| Long Term Debt | 733 | 646 | 695 | 632 | 140 | -77.8% |
Cash flow
|
|---|
| Capex | 50 | 109 | 88 | 92 | 113 | 23.0% |
Ratios
|
|---|
| Revenue growth | -52.9% | 7.3% | 25.8% | 21.0% | 7.6% | |
| EBITDA growth | 9.4% | 16.9% | 59.2% | 26.5% | -25.3% | |
| EBITDA Margin | 9.8% | 10.6% | 13.5% | 14.1% | 9.8% | -4.3% |
| Net Income Margin | 2.4% | 2.7% | 4.4% | 5.7% | -12.0% | -17.7% |
| CAPEX, % of revenue | 2.7% | 5.5% | 3.5% | 3.0% | 3.5% | 0.4% |
| ROIC | 3.4% | 4.9% | 10.7% | 13.2% | 10.6% | -2.7% |
| ROE | 6.1% | 7.2% | 13.4% | 17.7% | -39.9% | -57.6% |
| Net Debt/EBITDA | 6.0x | 4.5x | 3.0x | 3.0x | 2.4x | -0.6x |
Revenue and profitability
The company's Revenue increased on 7.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 9.2% to 10.5% in FY2015.
Net Income marign dropped on 17.7 pp from 5.7% to -12.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in FY2015. Kopran showed decline in CAPEX/Revenue of 2.0 pp from 5.5% in FY2012 to 3.5% in FY2015. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at low but positive ROIC (10.56%) and negative ROE (-39.94%). ROIC decreased on 2.7 pp from 13.2% to 10.6% in FY2015. ROE dropped on 57.6 pp from 17.7% to -39.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 2.4x. Net Debt / EBITDA dropped on 0.6x from 3.0x to 2.4x in FY2015. Debt dropped on 40.0% in FY2015 while cash dropped on 28.5% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Kopran 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 ($ABBOTINDIA) | | 8.2% | 8.7% | 27.3% | 2.6% |
| |
|---|
| Median (41 companies) | -37.4% | 16.7% | 14.7% | 12.6% | 10.4% |
|---|
| Kopran ($KOPRAN) | | 7.3% | 25.8% | 21.0% | 7.6% |
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 ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| |
|---|
| Median (39 companies) | 16.5% | 12.9% | 12.8% | 15.0% | 14.3% |
|---|
| Kopran ($KOPRAN) | 9.8% | 10.6% | 13.5% | 14.1% | 9.8% |
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 ($GRANULES) | 5.3% | 8.8% | 15.2% | 24.3% | 11.4% |
| |
|---|
| Median (27 companies) | 7.4% | 8.2% | 8.3% | 5.8% | 6.4% |
|---|
| Kopran ($KOPRAN) | 2.7% | 5.5% | 3.5% | 3.0% | 3.5% |
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 ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| |
|---|
| Median (63 companies) | 14.0% | 14.0% | 13.8% | 15.6% | 14.9% |
|---|
| Kopran ($KOPRAN) | 3.4% | 4.9% | 10.7% | 13.2% | 10.6% |
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 |
| Lincoln Pharmaceuticals ($LINCOPH) | 3.6x | 3.8x | 4.3x | 3.0x | |
| |
|---|
| Median (50 companies) | 1.5x | 1.4x | 1.2x | 0.3x | 0.6x |
|---|
| Kopran ($KOPRAN) | 6.0x | 4.5x | 3.0x | 3.0x | 2.4x |
