Marksans Pharma EBITDA surged on 62.2% in 2015 and EBITDA Margin increased on 5.1 pp from 18.1% to 23.2%
30-05-2015 • About Marksans Pharma (
$MARKSANS) • By InTwits
Marksans Pharma reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 23.2% in FY2015 vs. 18.1% in FY2014 vs. -24.7% in FY2011
- EBITDA Margin is quite volatile: 23.2% in FY2015, 18.1% in FY2014, 15.0% in FY2013, -27.2% in FY2012, -24.7% in FY2011
- Marksans Pharma has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 365 in FY2015, 52.1 in FY2014, 64.3 in FY2013, 52.8 in FY2012, 0 in FY2011
- The company has highly profitable business model: ROIC is at 41.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Marksans Pharma ($MARKSANS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,046 | 3,555 | 4,384 | 6,285 | 7,967 | 26.8% |
| EBITDA | -752 | -968 | 659 | 1,140 | 1,849 | 62.2% |
| Net Income | -2,232 | -1,788 | 459 | 719 | 1,094 | 52.1% |
Balance Sheet
|
|---|
| Cash | 62 | 221 | 155 | 467 | 1,851 | 296.0% |
| Short Term Debt | 1,677 | 1,636 | 1,549 | 1,399 | 822 | -41.3% |
| Long Term Debt | 190 | 152 | 79 | 198 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 0 | 53 | 64 | 52 | 365 | 600.2% |
Ratios
|
|---|
| Revenue growth | -66.6% | 16.7% | 23.3% | 43.3% | 26.8% | |
| EBITDA growth | -411.1% | 28.7% | -168.1% | 72.9% | 62.2% | |
| EBITDA Margin | -24.7% | -27.2% | 15.0% | 18.1% | 23.2% | 5.1% |
| Net Income Margin | -73.3% | -50.3% | 10.5% | 11.4% | 13.7% | 2.3% |
| CAPEX, % of revenue | 0.0% | 1.5% | 1.5% | 0.8% | 4.6% | 3.7% |
| ROIC | -25.8% | -142.4% | 34.9% | 33.8% | 41.2% | 7.3% |
| ROE | | | | 71.3% | 44.1% | -27.2% |
| Net Debt/EBITDA | | | 2.2x | 1.0x | -0.6x | -1.5x |
Revenue and profitability
The company's Revenue surged on 26.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.1 pp from 18.1% to 23.2% in FY2015.
Net Income marign increased on 2.3 pp from 11.4% to 13.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Marksans Pharma's CAPEX/Revenue was 4.6% in FY2015. CAPEX/Revenue increased on 3.1 pp from 1.5% in FY2012 to 4.6% in FY2015. It's average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at high and attractive ROIC (41.16%) and ROE (44.12%). ROIC increased on 7.3 pp from 33.8% to 41.2% in FY2015. ROE dropped on 27.2 pp from 71.3% to 44.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 1.5x from 1.0x to -0.6x in FY2015. Debt dropped on 48.5% in FY2015 while cash jumped on 296% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Marksans Pharma 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 |
|---|
| Mangalam Drugs & Organics ($MANGALAM) | | 16.6% | -18.2% | -2.1% | 79.8% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | | 39.9% | 40.4% | 42.4% | 70.2% |
| Torrent Cables ($TORRCABS) | | 27.5% | 17.4% | -42.9% | 26.5% |
| Lincoln Pharmaceuticals ($LINCOPH) | | 6.3% | 3.8% | 8.5% | 25.9% |
| Divi'S Laboratories ($DIVISLAB) | | 42.2% | 15.1% | 18.0% | 23.3% |
| |
|---|
| Median (37 companies) | -16.1% | 16.6% | 14.7% | 12.6% | 9.2% |
|---|
| Marksans Pharma ($MARKSANS) | | 16.7% | 23.3% | 43.3% | 26.8% |
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 ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| |
|---|
| Median (46 companies) | 16.5% | 12.9% | 12.8% | 14.3% | 13.0% |
|---|
| Marksans Pharma ($MARKSANS) | -24.7% | -27.2% | 15.0% | 18.1% | 23.2% |
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 ($HESTERBIO) | | | | | 21.5% |
| Ipca Laboratories ($IPCALAB) | 10.3% | 11.2% | 8.3% | 11.6% | 17.8% |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | 14.1% |
| |
|---|
| Median (30 companies) | 7.4% | 8.2% | 8.3% | 5.8% | 6.3% |
|---|
| Marksans Pharma ($MARKSANS) | 0.0% | 1.5% | 1.5% | 0.8% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alembic Pharmaceuticals ($APLLTD) | | 27.5% | 29.1% | 41.5% | 35.7% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| Abbott India ($ABBOTINDIA) | 36.0% | 29.6% | 26.9% | 30.5% | 34.2% |
| Divi'S Laboratories ($DIVISLAB) | 25.6% | 30.6% | 30.4% | 32.3% | 30.5% |
| Ngl Fine-Chem ($NGLFINE) | 19.0% | 9.3% | 17.9% | 22.4% | 27.5% |
| |
|---|
| Median (53 companies) | 14.0% | 14.0% | 13.2% | 14.4% | 13.2% |
|---|
| Marksans Pharma ($MARKSANS) | -25.8% | -142.4% | 34.9% | 33.8% | 41.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Life Sciences Limited ($JUBILANT) | 5.3x | 4.0x | 3.5x | 3.5x | 6.4x |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
| Claris Lifesciences ($CLARIS) | 1.5x | 1.9x | 1.1x | 1.8x | 3.2x |
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 3.7x | 3.6x | 2.6x | 2.3x | 2.9x |
| Neuland Laboratories ($NEULANDLAB) | 4.9x | 4.2x | 3.5x | 2.6x | 2.6x |
| |
|---|
| Median (42 companies) | 1.6x | 1.5x | 1.2x | 0.3x | 0.6x |
|---|
| Marksans Pharma ($MARKSANS) | | | 2.2x | 1.0x | -0.6x |
