Kse reports 109% EBITDA growth and 3.1 pp EBITDA Margin growth from 3.6% to 6.7%
30-05-2015 • About Kse (
$KSE) • By InTwits
Kse reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.7% in FY2015, 3.6% in FY2014, 2.0% in FY2013, 4.2% in FY2012, 3.0% in FY2011
- Kse has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 69.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kse ($KSE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,537 | 5,422 | 6,972 | 8,063 | 8,997 | 11.6% |
| EBITDA | 138 | 227 | 140 | 289 | 602 | 108.7% |
| Net Income | 45 | 104 | 47 | 154 | 436 | 183.8% |
Balance Sheet
|
|---|
| Cash | 31 | 58 | 38 | 31 | 378 | 1,101.5% |
| Short Term Debt | 94 | 205 | 195 | 102 | 121 | 18.6% |
| Long Term Debt | 158 | 72 | 69 | 65 | 53 | -18.6% |
Cash flow
|
|---|
| Capex | 27 | 27 | 79 | 10 | 16 | 56.1% |
Ratios
|
|---|
| Revenue growth | -57.4% | 19.5% | 28.6% | 15.7% | 11.6% | |
| EBITDA growth | -25.6% | 64.9% | -38.3% | 106.0% | 108.7% | |
| EBITDA Margin | 3.0% | 4.2% | 2.0% | 3.6% | 6.7% | 3.1% |
| Net Income Margin | 1.0% | 1.9% | 0.7% | 1.9% | 4.8% | 2.9% |
| CAPEX, % of revenue | 0.6% | 0.5% | 1.1% | 0.1% | 0.2% | 0.0% |
| ROIC | 14.7% | 27.7% | 14.1% | 36.9% | 69.0% | 32.1% |
| ROE | 13.6% | 28.6% | 11.6% | 34.4% | 72.5% | 38.0% |
| Net Debt/EBITDA | 1.6x | 1.0x | 1.6x | 0.5x | -0.3x | -0.8x |
Revenue and profitability
Kse's Revenue surged on 11.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign increased on 2.9 pp from 1.9% to 4.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.17%. Kse showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.47%.
Return on investment
The company operates at high and attractive ROIC (69.01%) and ROE (72.49%). ROIC surged on 32.1 pp from 36.9% to 69.0% in FY2015. ROE surged on 38.0 pp from 34.4% to 72.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.8x from 0.5x to -0.3x in FY2015. Debt increased on 4.1% in FY2015 while cash surged on 1,102% in FY2015.
Appendix 1: Peers in Packaged Foods
Below we provide Kse benchmarking against other companies in Packaged Foods 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 |
|---|
| Krbl ($KRBL) | | 5.6% | 27.6% | 39.9% | 8.6% |
| Sunil Agro Foods ($SUNILAGR) | -34.2% | 1.6% | 38.3% | 29.1% | |
| Milkfood ($MLKFOOD) | -29.8% | -1.1% | 9.3% | 27.7% | |
| Simran Farms ($SIMRAN) | | 38.4% | 23.8% | 27.5% | 23.4% |
| Venky'S (India) ($VENKYS) | | 18.0% | 46.0% | 24.8% | -0.3% |
| |
|---|
| Median (15 companies) | -35.3% | 14.7% | 14.8% | 16.0% | 9.6% |
|---|
| Kse ($KSE) | | 19.5% | 28.6% | 15.7% | 11.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.8% | 18.6% | 17.8% | 22.5% | 17.2% |
| Krbl ($KRBL) | 14.7% | 14.1% | 14.2% | 15.1% | 15.4% |
| Adf Foods ($ADFFOODS) | 16.2% | 13.5% | 11.2% | 8.6% | 14.5% |
| Britannia Industries ($BRITANNIA) | 5.2% | 5.7% | 6.9% | 9.2% | 11.1% |
| Venky'S (India) ($VENKYS) | 14.1% | 7.2% | 4.4% | 3.9% | 7.8% |
| |
|---|
| Median (10 companies) | 7.7% | 8.0% | 8.7% | 8.7% | 7.2% |
|---|
| Kse ($KSE) | 3.0% | 4.2% | 2.0% | 3.6% | 6.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 6.4% | 8.9% | 6.6% | 10.4% | 7.7% |
| Krbl ($KRBL) | 5.8% | 4.1% | 4.0% | 6.1% | 7.3% |
| Vadilal Industries ($VADILALIND) | 20.1% | 12.2% | 9.4% | 5.9% | |
| Adf Foods ($ADFFOODS) | 21.8% | 1.9% | 18.3% | 5.8% | |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 3.6% | 2.7% | | 4.3% | 2.5% |
| |
|---|
| Median (9 companies) | 3.6% | 4.1% | 4.2% | 4.3% | 2.9% |
|---|
| Kse ($KSE) | 0.6% | 0.5% | 1.1% | 0.1% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Britannia Industries ($BRITANNIA) | 17.8% | 24.6% | 33.7% | 54.0% | 59.4% |
| Nestle India ($NESTLEIND) | 85.4% | 57.7% | 47.9% | 49.6% | |
| Heritage Foods ($HERITGFOOD) | 5.9% | 11.7% | 29.6% | 22.4% | 13.5% |
| Umang Dairies ($UMANGDAIR) | 54.8% | 93.5% | 55.6% | 22.3% | 28.4% |
| Krbl ($KRBL) | 14.4% | 11.7% | 14.5% | 18.3% | 17.0% |
| |
|---|
| Median (19 companies) | 11.3% | 12.1% | 10.9% | 20.3% | 22.7% |
|---|
| Kse ($KSE) | 14.7% | 27.7% | 14.1% | 36.9% | 69.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 0.9x | 2.6x | 2.8x | 6.7x | 3.9x |
| Krbl ($KRBL) | 3.7x | 4.1x | 2.9x | 3.0x | 2.7x |
| Heritage Foods ($HERITGFOOD) | 3.5x | 2.2x | 0.9x | 1.0x | 1.4x |
| Umang Dairies ($UMANGDAIR) | 1.8x | 0.6x | 0.5x | 1.7x | 1.1x |
| Simran Farms ($SIMRAN) | -0.1x | 0.0x | | 0.0x | 0.0x |
| |
|---|
| Median (10 companies) | 2.3x | 1.9x | 0.8x | 1.1x | 0.0x |
|---|
| Kse ($KSE) | 1.6x | 1.0x | 1.6x | 0.5x | -0.3x |
