Piramal Glass reports 8.4% revenue growth in FY2015 and 1.9 pp EBITDA Margin decline from 15.5% to 13.5%
29-12-2015 • About Piramal Glass (
$PIRAMGLAS) • By InTwits
Piramal Glass reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 13.5% in FY2015 vs. 15.5% in FY2014 vs. 24.4% in FY2011
- Piramal Glass has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.3%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 884 in FY2015, 1,348 in FY2014, 986 in FY2013, 2,903 in FY2012, 1,561 in FY2011
- The company has business model with low profitability: ROIC is at 7.0%
- It operates with high leverage: Net Debt/EBITDA is 4.2x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Piramal Glass ($PIRAMGLAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,380 | 14,045 | 16,423 | 17,618 | 19,097 | 8.4% |
| EBITDA | 3,018 | 3,322 | 3,111 | 2,723 | 2,580 | -5.3% |
| Net Income | 930 | 959 | 217 | 376 | -60 | -116.1% |
Balance Sheet
|
|---|
| Cash | 131 | 307 | 376 | 521 | 397 | -23.7% |
| Short Term Debt | 6,871 | 7,309 | 7,951 | 7,306 | 8,268 | 13.2% |
| Long Term Debt | 2,335 | 3,365 | 5,184 | 4,875 | 3,063 | -37.2% |
Cash flow
|
|---|
| Capex | 1,561 | 2,903 | 986 | 1,348 | 884 | -34.5% |
Ratios
|
|---|
| Revenue growth | -47.6% | 13.5% | 16.9% | 7.3% | 8.4% | |
| EBITDA growth | 27.2% | 10.1% | -6.3% | -12.5% | -5.3% | |
| EBITDA Margin | 24.4% | 23.7% | 18.9% | 15.5% | 13.5% | -1.9% |
| Net Income Margin | 7.5% | 6.8% | 1.3% | 2.1% | -0.3% | -2.4% |
| CAPEX, % of revenue | 12.6% | 20.7% | 6.0% | 7.7% | 4.6% | -3.0% |
| ROIC | 15.1% | 16.1% | 11.0% | 7.6% | 7.0% | -0.5% |
| ROE | 34.3% | 29.2% | 6.0% | 10.1% | -1.6% | -11.7% |
| Net Debt/EBITDA | 3.0x | 3.1x | 4.1x | 4.3x | 4.2x | -0.0x |
Revenue and profitability
The company's Revenue increased on 8.4% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 15.5% to 13.5% in FY2015.
Net Income marign decreased on 2.4 pp from 2.1% to -0.32% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.6%. The company showed big decline in CAPEX/Revenue of 16.0 pp from 20.7% in FY2012 to 4.6% in FY2015. Average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at low but positive ROIC (7.03%) and negative ROE (-1.64%). ROIC decreased slightly on 0.53 pp from 7.6% to 7.0% in FY2015. ROE dropped on 11.7 pp from 10.1% to -1.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 4.4x. Net Debt / EBITDA decreased on 0.043x from 4.3x to 4.2x in FY2015. Debt decreased on 7.0% in FY2015 while cash dropped on 23.7% in FY2015.
Appendix 1: Peers in Containers & Packaging
Below you can find Piramal Glass benchmarking vs. other companies in Containers & Packaging 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | | 20.0% | 14.1% | 23.9% |
| Shri Jagdamba Polymers ($SHRJAGP) | | 35.5% | 38.3% | 21.7% | 22.7% |
| Kg Petrochem ($KGPETRO) | | 16.1% | 24.0% | 20.9% | 22.4% |
| Kanpur Plastipack ($KANPRPLA) | | 57.2% | -4.6% | 21.1% | 15.9% |
| Emmbi Industries ($EMMBI) | | 35.6% | 36.6% | 13.9% | 14.8% |
| |
|---|
| Median (19 companies) | | 18.0% | 15.3% | 14.1% | 8.5% |
|---|
| Piramal Glass ($PIRAMGLAS) | | 13.5% | 16.9% | 7.3% | 8.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | 13.9% | 19.2% | 22.5% | 25.2% |
| Manaksia ($MANAKSIA) | 16.5% | 14.4% | 17.4% | 20.3% | 18.6% |
| Essel Propack ($ESSELPRO) | 17.8% | 17.0% | 17.4% | 16.9% | 17.2% |
| Time Technoplast ($TIMETECHNO) | 18.5% | 15.9% | 16.2% | 14.1% | 13.7% |
| Kg Petrochem ($KGPETRO) | 11.6% | 16.0% | 12.8% | 14.7% | 12.5% |
| |
|---|
| Median (22 companies) | 11.5% | 12.9% | 10.6% | 11.4% | 8.8% |
|---|
| Piramal Glass ($PIRAMGLAS) | 24.4% | 23.7% | 18.9% | 15.5% | 13.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | 3.0% | 5.0% | 7.5% | 11.9% |
| Essel Propack ($ESSELPRO) | 7.9% | 10.0% | 6.7% | 8.5% | 9.4% |
| Manaksia ($MANAKSIA) | 9.0% | 9.0% | 4.8% | 4.7% | 6.5% |
| Time Technoplast ($TIMETECHNO) | 18.5% | 17.9% | 11.1% | 6.2% | 4.2% |
| Uflex ($UFLEX) | 16.0% | 23.0% | 11.8% | 3.5% | 3.6% |
| |
|---|
| Median (6 companies) | 9.0% | 8.6% | 8.9% | 6.5% | 5.4% |
|---|
| Piramal Glass ($PIRAMGLAS) | 12.6% | 20.7% | 6.0% | 7.7% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Control Print ($CONTROLPR) | | | 19.7% | 22.2% | 25.2% |
| Essel Propack ($ESSELPRO) | | 8.6% | 9.9% | 12.5% | 14.7% |
| Time Technoplast ($TIMETECHNO) | 15.9% | 12.8% | 13.4% | 12.0% | 12.9% |
| Manaksia ($MANAKSIA) | 12.7% | 12.9% | 15.5% | 16.0% | 11.4% |
| Uflex ($UFLEX) | 33.1% | 12.5% | 9.9% | 8.1% | 8.4% |
| |
|---|
| Median (32 companies) | 8.4% | 9.1% | 9.9% | 12.0% | 12.2% |
|---|
| Piramal Glass ($PIRAMGLAS) | 15.1% | 16.1% | 11.0% | 7.6% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 2.1x | 7.4x | 15.8x | 11.2x | 10.6x |
| Uflex ($UFLEX) | 1.0x | 2.7x | 3.0x | 3.2x | 2.8x |
| Essel Propack ($ESSELPRO) | 3.0x | 3.2x | 2.9x | 2.6x | 2.2x |
| Time Technoplast ($TIMETECHNO) | 2.3x | 2.6x | 2.6x | 2.6x | 2.2x |
| Manaksia ($MANAKSIA) | 1.7x | 1.3x | 1.2x | 0.3x | 0.9x |
| |
|---|
| Median (20 companies) | 3.2x | 3.2x | 3.3x | 0.9x | 0.0x |
|---|
| Piramal Glass ($PIRAMGLAS) | 3.0x | 3.1x | 4.1x | 4.3x | 4.2x |
