Panacea Biotec revenue returned to growth in FY2015: increased 34.7% vs. 6.1% decline a year earliner
31-05-2015 • About Panacea Biotec (
$PANACEABIO) • By InTwits
Panacea Biotec reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Panacea Biotec doesn't have a profitable business model yet: FY2015 ROIC is 0.3%
- EBITDA Margin is quite volatile: 10.4% in FY2015, -13.6% in FY2014, -9.1% in FY2013, -7.1% in FY2012, 23.8% in FY2011
- Panacea Biotec has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's in pair with industry average of 14.1%.
- CAPEX is quite volatile: 78.3 in FY2015, 560 in FY2014, 798 in FY2013, 1,345 in FY2012, 743 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with high leverage: Net Debt/EBITDA is 15.0x while industry average is 5.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Panacea Biotec ($PANACEABIO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,434 | 6,978 | 5,431 | 5,100 | 6,872 | 34.7% |
| EBITDA | 2,724 | -495 | -492 | -695 | 718 | |
| Net Income | 1,447 | -2,057 | -2,343 | -1,121 | -1,065 | |
Balance Sheet
|
|---|
| Cash | 441 | 150 | 349 | 208 | 200 | -4.0% |
| Short Term Debt | 4,386 | 3,641 | 2,893 | 4,766 | 3,719 | -22.0% |
| Long Term Debt | 4,237 | 5,125 | 6,899 | 5,832 | 7,230 | 24.0% |
Cash flow
|
|---|
| Capex | 743 | 1,345 | 798 | 560 | 78 | -86.0% |
Ratios
|
|---|
| Revenue growth | 42.0% | -39.0% | -22.2% | -6.1% | 34.7% | |
| EBITDA growth | 94.1% | -118.2% | -0.4% | 41.2% | -203.2% | |
| EBITDA Margin | 23.8% | -7.1% | -9.1% | -13.6% | 10.4% | 24.1% |
| Net Income Margin | 12.7% | -29.5% | -43.1% | -22.0% | -15.5% | 6.5% |
| CAPEX, % of revenue | 6.5% | 19.3% | 14.7% | 11.0% | 1.1% | -9.8% |
| ROIC | 12.6% | -7.5% | -8.0% | -8.7% | 0.3% | 9.0% |
| ROE | 21.4% | -27.0% | -31.2% | -19.7% | -22.0% | -2.3% |
| Net Debt/EBITDA | 3.0x | | | | 15.0x | 15.0x |
Revenue and profitability
Panacea Biotec's Revenue surged on 34.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 18.3 pp from -22.9% to -4.6% in FY2015.
Net Income marign increased on 6.5 pp from -22.0% to -15.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.1%. CAPEX/Revenue dropped on 18.1 pp from 19.3% in FY2012 to 1.1% in FY2015. For the last three years the average CAPEX/Revenue was 8.9%.
Return on investment
The company operates at low but positive ROIC (0.28%) and negative ROE (-22.01%). ROIC increased on 9.0 pp from -8.7% to 0.28% in FY2015. ROE decreased on 2.3 pp from -19.7% to -22.0% in FY2015.
Leverage (Debt)
Debt level is 15.0x Net Debt / EBITDA and 15.3x Debt / EBITDA. Net Debt / EBITDA jumped15.0x from to 15.0x in FY2015. Debt increased on 3.3% in FY2015 while cash decreased on 4.0% in FY2015.
Appendix 1: Peers in Biotechnology
Below you can find Panacea Biotec benchmarking vs. other companies in Biotechnology 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 |
|---|
| Biocon ($BIOCON) | | 14.5% | 21.3% | 15.8% | 7.4% |
| |
|---|
| Median (1 company) | | 14.5% | 21.3% | 15.8% | 7.4% |
|---|
| Panacea Biotec ($PANACEABIO) | | -39.0% | -22.2% | -6.1% | 34.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biocon ($BIOCON) | 29.4% | 25.3% | 22.9% | 25.7% | 23.6% |
| Alpa Laboratories ($ALPA) | | | | | 6.0% |
| |
|---|
| Median (2 companies) | 29.4% | 25.3% | 22.9% | 25.7% | 14.8% |
|---|
| Panacea Biotec ($PANACEABIO) | 23.8% | -7.1% | -9.1% | -13.6% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biocon ($BIOCON) | 10.6% | 13.4% | 14.4% | 27.4% | 27.1% |
| |
|---|
| Median (1 company) | 10.6% | 13.4% | 14.4% | 27.4% | 27.1% |
|---|
| Panacea Biotec ($PANACEABIO) | 6.5% | 19.3% | 14.7% | 11.0% | 1.1% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biocon ($BIOCON) | 15.3% | 13.5% | 13.9% | 15.4% | 12.2% |
| Vivo Bio Tech ($VIVOBIOT) | 7.4% | 11.4% | 4.0% | | |
| Alpa Laboratories ($ALPA) | | 1.9% | -1.6% | | |
| Saamya Biotech (India) ($SAAMYABIO) | 1.1% | 1.6% | -1.1% | | |
| |
|---|
| Median (4 companies) | 7.4% | 6.6% | 1.4% | 15.4% | 12.2% |
|---|
| Panacea Biotec ($PANACEABIO) | 12.6% | -7.5% | -8.0% | -8.7% | 0.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biocon ($BIOCON) | 0.0x | -0.1x | -0.4x | 0.4x | 0.1x |
| Alpa Laboratories ($ALPA) | 4.8x | 3.4x | 4.6x | 0.0x | 0.0x |
| |
|---|
| Median (2 companies) | 2.6x | 1.8x | -0.4x | 0.0x | 0.1x |
|---|
| Panacea Biotec ($PANACEABIO) | 3.0x | | | | 15.0x |
