Panasonic Appliances India Company reports 115% EBITDA growth and 22.3% Revenue growth
14-10-2015 • About Panasonic Appliances India Company (
$PANASONIC) • By InTwits
Panasonic Appliances India Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.5% in FY2015, 2.0% in FY2014, -3.5% in FY2013, -3.5% in FY2012, 3.8% in FY2011
- Panasonic Appliances India Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's in pair with industry average of 15.8%.
- CAPEX is quite volatile: 58.1 in FY2015, 31.3 in FY2014, 4.8 in FY2013, 97.3 in FY2012, 116 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 5.8x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Panasonic Appliances India Company ($PANASONIC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,864 | 1,796 | 1,476 | 1,573 | 1,924 | 22.3% |
| EBITDA | 71 | -63 | -52 | 31 | 68 | 115.1% |
| Net Income | 18 | -128 | -114 | -34 | 4 | |
Balance Sheet
|
|---|
| Cash | 7 | 1 | 1 | 1 | 2 | 46.5% |
| Short Term Debt | 88 | 275 | 250 | 352 | 326 | -7.3% |
| Long Term Debt | 95 | 108 | 54 | 6 | 70 | 1,020.0% |
Cash flow
|
|---|
| Capex | 116 | 97 | 5 | 31 | 58 | 85.9% |
Ratios
|
|---|
| Revenue growth | -16.5% | -3.6% | -17.8% | 6.6% | 22.3% | |
| EBITDA growth | 12.3% | -188.4% | -17.5% | -160.5% | 115.1% | |
| EBITDA Margin | 3.8% | -3.5% | -3.5% | 2.0% | 3.5% | 1.5% |
| Net Income Margin | 1.0% | -7.1% | -7.7% | -2.2% | 0.2% | 2.4% |
| CAPEX, % of revenue | 6.2% | 5.4% | 0.3% | 2.0% | 3.0% | 1.0% |
| ROIC | 12.5% | -22.0% | -20.1% | -0.6% | 6.6% | 7.2% |
| ROE | 9.3% | -96.9% | -158.9% | -44.9% | 5.4% | 50.2% |
| Net Debt/EBITDA | 2.5x | | | 11.3x | 5.8x | -5.5x |
Revenue and profitability
The company's Revenue surged on 22.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.5 pp from 2.0% to 3.5% in FY2015.
Net Income marign increased on 2.4 pp from -2.2% to 0.22% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Panasonic Appliances India Company's CAPEX/Revenue was 3.0% in FY2015. The company showed decline in CAPEX/Revenue of 2.4 pp from 5.4% in FY2012 to 3.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.8%.Panasonic Appliances India Company invested a big chunk of EBITDA (85.9%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (6.60%) and ROE (5.36%). ROIC increased on 7.2 pp from -0.57% to 6.6% in FY2015. ROE surged on 50.2 pp from -44.9% to 5.4% in FY2015.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA dropped on 5.5x from 11.3x to 5.8x in FY2015. Debt jumped on 10.7% in FY2015 while cash surged on 46.5% in FY2015.
Valuation
Panasonic Appliances India Company's trades at EV/EBITDA 55.6x and P/E 812.7x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 395.1x with the industry average at 4.7x.
Appendix 1: Peers in Household Appliances
Below you can find Panasonic Appliances India Company benchmarking vs. other companies in Household Appliances 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 |
|---|
| Ifb Industries ($IFBIND) | | 18.1% | 14.1% | 11.5% | 23.6% |
| Value Industries ($VALUEIND) | 185.7% | -11.7% | 20.3% | 6.1% | |
| Khaitan Electricals ($KHAITANELE) | | -5.5% | 16.9% | 1.1% | -16.9% |
| |
|---|
| Median (3 companies) | 185.7% | -5.5% | 16.9% | 6.1% | 3.3% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | | -3.6% | -17.8% | 6.6% | 22.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Value Industries ($VALUEIND) | 12.3% | 8.1% | 6.9% | 7.8% | |
| Ifb Industries ($IFBIND) | 9.4% | 6.2% | 5.6% | 5.9% | 7.1% |
| Khaitan Electricals ($KHAITANELE) | 6.2% | 2.6% | 6.1% | 2.8% | |
| |
|---|
| Median (3 companies) | 9.4% | 6.2% | 6.1% | 5.9% | 7.1% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 3.8% | -3.5% | -3.5% | 2.0% | 3.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ifb Industries ($IFBIND) | 7.0% | 7.3% | 5.7% | 5.7% | 6.9% |
| |
|---|
| Median (1 company) | 7.0% | 3.9% | 5.7% | 5.7% | 6.9% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 6.2% | 5.4% | 0.3% | 2.0% | 3.0% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ifb Industries ($IFBIND) | 28.1% | 14.4% | 11.0% | 9.9% | 11.4% |
| Khaitan Electricals ($KHAITANELE) | 7.8% | 2.6% | 8.1% | | |
| Value Industries ($VALUEIND) | | | | | |
| |
|---|
| Median (3 companies) | 17.9% | 8.5% | 9.6% | 9.9% | 11.4% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 12.5% | -22.0% | -20.1% | -0.6% | 6.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Value Industries ($VALUEIND) | 6.6x | 0.0x | 0.0x | 0.0x | |
| Khaitan Electricals ($KHAITANELE) | 8.3x | 22.8x | 6.9x | 0.0x | |
| Ifb Industries ($IFBIND) | -0.4x | -1.1x | -0.7x | -0.3x | -0.1x |
| |
|---|
| Median (3 companies) | 6.6x | 0.0x | 0.0x | 0.0x | -0.1x |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 2.5x | | | 11.3x | 5.8x |
