Tcpl Packaging Net Income surged on 157% in 2015 and EBITDA Margin increased slightly on 0.80 pp from 15.7% to 16.5%
29-05-2015 • About Tcpl Packaging (
$TCPLPACK) • By InTwits
Tcpl Packaging reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 16.5% in FY2015 vs. 15.7% in FY2014 vs. 14.7% in FY2011
- Tcpl Packaging has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.4%. At the same time it's a lot of higher than industry average of 0.6%.
- CAPEX is quite volatile: 118 in FY2015, 179 in FY2014, 71.8 in FY2013, 193 in FY2012, 147 in FY2011
- The company has highly profitable business model: ROIC is at 23.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is 1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tcpl Packaging ($TCPLPACK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,370 | 2,792 | 3,733 | 3,949 | 4,978 | 26.1% |
| EBITDA | 348 | 449 | 556 | 622 | 824 | 32.5% |
| Net Income | 63 | 77 | 135 | 125 | 322 | 157.4% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 5 | 23 | 338.9% |
| Short Term Debt | 418 | 450 | 623 | 619 | 590 | -4.8% |
| Long Term Debt | 485 | 695 | 632 | 782 | 974 | 24.6% |
Cash flow
|
|---|
| Capex | 287 | 511 | 321 | 439 | 600 | 36.8% |
Ratios
|
|---|
| Revenue growth | -59.9% | 17.8% | 33.7% | 5.8% | 26.1% | |
| EBITDA growth | 26.3% | 28.9% | 23.9% | 11.8% | 32.5% | |
| EBITDA Margin | 14.7% | 16.1% | 14.9% | 15.7% | 16.5% | 0.8% |
| Net Income Margin | 2.7% | 2.8% | 3.6% | 3.2% | 6.5% | 3.3% |
| CAPEX, % of revenue | 12.1% | 18.3% | 8.6% | 11.1% | 12.1% | 0.9% |
| ROIC | 13.3% | 15.4% | 17.4% | 16.9% | 23.1% | 6.2% |
| ROE | 11.1% | 12.1% | 18.6% | 15.1% | 31.9% | 16.8% |
| Net Debt/EBITDA | 2.6x | 2.6x | 2.3x | 2.2x | 1.9x | -0.4x |
Revenue and profitability
Tcpl Packaging's Revenue jumped on 26.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.80 pp from 15.7% to 16.5% in FY2015.
Net Income marign increased on 3.3 pp from 3.2% to 6.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tcpl Packaging's CAPEX/Revenue was 12.1% in FY2015. Tcpl Packaging's CAPEX/Revenue decreased on 6.3 pp from 18.3% in FY2012 to 12.1% in FY2015. For the last three years the average CAPEX/Revenue was 10.6%.To fuel this fast growth Tcpl Packaging invested a large share of EBITDA (72.8%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (23.15%) and ROE (31.91%). ROIC increased on 6.2 pp from 16.9% to 23.1% in FY2015. ROE jumped on 16.8 pp from 15.1% to 31.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.4x from 2.2x to 1.9x in FY2015. Debt surged on 11.6% in FY2015 while cash jumped on 339% in FY2015.
Valuation
The company's trades at EV/EBITDA 6.7x and P/E 12.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 24.5x with the industry average at 4.7x.
Appendix 1: Peers in Paper & Paper Products
Below we provide Tcpl Packaging benchmarking against other companies in Paper & Paper Products 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 |
|---|
| Yash Papers ($YASHPPR) | | 9.0% | -3.6% | 39.5% | 17.3% |
| Tamil Nadu Newsprint & Papers ($TNPL) | | 26.0% | 22.2% | 22.8% | -6.5% |
| Malu Paper Mills ($MALUPAPER) | | 0.3% | 4.9% | 22.6% | 6.0% |
| Jk Paper ($JKPAPER) | | 7.9% | 9.4% | 18.5% | 24.3% |
| Shreyans Industries ($SHREYANIND) | | 7.8% | 24.4% | 17.3% | -8.8% |
| |
|---|
| Median (14 companies) | -38.1% | 8.6% | 4.7% | 8.4% | -0.3% |
|---|
| Tcpl Packaging ($TCPLPACK) | | 17.8% | 33.7% | 5.8% | 26.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tamil Nadu Newsprint & Papers ($TNPL) | 26.2% | 21.0% | 22.2% | 22.5% | 24.0% |
| South India Paper Mills ($STHINPA) | 14.9% | 13.5% | 16.1% | 10.2% | 15.8% |
| Yash Papers ($YASHPPR) | 15.6% | 15.7% | 16.8% | 16.0% | 15.7% |
| Kuantum Papers ($KUANTUM) | 15.1% | 11.2% | 14.2% | 15.9% | 12.7% |
| Emami Paper Mills ($EMAMIPAP) | 15.1% | 13.3% | 15.0% | 14.5% | 11.4% |
| |
|---|
| Median (10 companies) | 12.1% | 11.6% | 11.8% | 13.2% | 11.4% |
|---|
| Tcpl Packaging ($TCPLPACK) | 14.7% | 16.1% | 14.9% | 15.7% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emami Paper Mills ($EMAMIPAP) | 5.0% | 24.4% | 7.3% | 19.2% | 89.3% |
| Tamil Nadu Newsprint & Papers ($TNPL) | 23.6% | 18.9% | 10.4% | 5.5% | 35.2% |
| Jk Paper ($JKPAPER) | 10.1% | 47.6% | 59.5% | 15.9% | 4.2% |
| |
|---|
| Median (3 companies) | 5.3% | 11.3% | 10.4% | 15.9% | 35.2% |
|---|
| Tcpl Packaging ($TCPLPACK) | 12.1% | 18.3% | 8.6% | 11.1% | 12.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yash Papers ($YASHPPR) | 7.3% | 8.3% | 8.3% | 11.5% | |
| Tamil Nadu Newsprint & Papers ($TNPL) | 7.6% | 5.3% | 8.2% | 11.1% | 12.7% |
| Emami Paper Mills ($EMAMIPAP) | | 5.8% | 5.9% | 5.4% | 3.0% |
| Jk Paper ($JKPAPER) | 15.4% | 5.2% | 2.7% | 1.1% | 4.3% |
| Rama Pulp & Papers ($RAMAPULP) | | | 10.8% | | |
| |
|---|
| Median (21 companies) | 6.8% | 7.9% | 8.2% | 8.3% | 4.3% |
|---|
| Tcpl Packaging ($TCPLPACK) | 13.3% | 15.4% | 17.4% | 16.9% | 23.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jk Paper ($JKPAPER) | 2.0x | 6.8x | 12.7x | 14.1x | 8.6x |
| Emami Paper Mills ($EMAMIPAP) | 5.9x | 7.4x | 5.3x | 5.0x | 11.2x |
| Yash Papers ($YASHPPR) | 5.7x | 5.2x | 5.5x | 4.5x | 0.0x |
| Tamil Nadu Newsprint & Papers ($TNPL) | 4.7x | 5.4x | 3.6x | 2.8x | 4.0x |
| Rama Pulp & Papers ($RAMAPULP) | 0.1x | 0.8x | 1.1x | 0.0x | |
| |
|---|
| Median (14 companies) | 4.3x | 3.6x | 3.3x | 0.0x | 0.0x |
|---|
| Tcpl Packaging ($TCPLPACK) | 2.6x | 2.6x | 2.3x | 2.2x | 1.9x |
