Merckbbph EBITDA jumped on 42.2% in 2015 and Revenue increased on 9.1%
27-02-2016 • About Merckbbph (
$MERCKBBPH) • By InTwits
Merckbbph reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.3% in FY2015, 7.2% in FY2014, 10.0% in FY2013, 16.0% in FY2012, 15.7% in FY2011
- Merckbbph has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 452 in FY2015, 404 in FY2014, 334 in FY2013, 136 in FY2012, 151 in FY2011
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Merckbbph ($MERCKBBPH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,576 | 6,581 | 7,730 | 8,325 | 9,083 | 9.1% |
| EBITDA | 875 | 1,056 | 770 | 596 | 847 | 42.2% |
| Net Income | 637 | 784 | 559 | 432 | 536 | 23.9% |
Balance Sheet
|
|---|
| Cash | 300 | 25 | 53 | 43 | 1,884 | 4,271.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 151 | 136 | 334 | 404 | 452 | 11.9% |
Ratios
|
|---|
| Revenue growth | -48.2% | 18.0% | 17.5% | 7.7% | 9.1% | |
| EBITDA growth | 36.7% | 20.6% | -27.0% | -22.7% | 42.2% | |
| EBITDA Margin | 15.7% | 16.0% | 10.0% | 7.2% | 9.3% | 2.2% |
| Net Income Margin | 11.4% | 11.9% | 7.2% | 5.2% | 5.9% | 0.7% |
| CAPEX, % of revenue | 2.7% | 2.1% | 4.3% | 4.9% | 5.0% | 0.1% |
| ROIC | 20.9% | 21.3% | 13.1% | 8.6% | 10.6% | 2.0% |
| ROE | 16.8% | 17.5% | 11.1% | 8.0% | 9.3% | 1.3% |
| Net Debt/EBITDA | -0.3x | -0.0x | -0.1x | -0.1x | -2.2x | -2.2x |
Revenue and profitability
Merckbbph's Revenue increased on 9.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.3 pp from 30.7% to 9.5% in FY2015.
Net Income marign increased slightly on 0.70 pp from 5.2% to 5.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Merckbbph's CAPEX/Revenue was 5.0% in FY2015. CAPEX/Revenue increased on 2.9 pp from 2.1% in FY2012 to 5.0% in FY2015. It's average CAPEX/Revenue for the last three years was 4.7%.Merckbbph maintained rich investment policy and has spent a big chunk of EBITDA (53.3%) to CAPEX.
Return on investment
The company operates at low ROIC (10.64%) and ROE (9.35%). ROIC increased on 2.0 pp from 8.6% to 10.6% in FY2015. ROE increased slightly on 1.3 pp from 8.0% to 9.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 4,272% in FY2015.
Appendix 1: Peers in
Below you can find Merckbbph benchmarking vs. other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | | 6.5% | -14.4% | -1.2% | 49.3% |
| Indbulbbph ($INDBULBBPH) | | -3.2% | -6.5% | 33.5% | 49.2% |
| Monetbbph ($MONETBBPH) | | 22.3% | 3.7% | 11.6% | 40.8% |
| Asleyf ($ASLEYF) | | 15.5% | -3.3% | -8.0% | 33.6% |
| Bharat Rasayan ($BHARATRA) | | 51.3% | 32.1% | 92.7% | 21.4% |
| |
|---|
| Median (17 companies) | | 17.4% | 8.5% | 3.5% | 8.4% |
|---|
| Merckbbph ($MERCKBBPH) | | 18.0% | 17.5% | 7.7% | 9.1% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | | | | | 53.4% |
| Kaleconbbph ($KALECONBBPH) | | 27.7% | 44.3% | 43.5% | 37.9% |
| Paushak ($PAUSHAK) | | | | | 25.6% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 24.7% |
| Indbulbbph ($INDBULBBPH) | 27.9% | 36.7% | 34.6% | 29.5% | 23.5% |
| |
|---|
| Median (21 companies) | 13.4% | 12.8% | 13.7% | 14.7% | 10.7% |
|---|
| Merckbbph ($MERCKBBPH) | 15.7% | 16.0% | 10.0% | 7.2% | 9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 9.6% | 131.4% | 5.2% | 139.2% | 89.2% |
| Jklakbbph ($JKLAKBBPH) | 23.6% | 28.5% | 28.8% | 24.6% | 23.6% |
| Rilbbph ($RILBBPH) | 12.7% | 4.6% | 7.7% | 13.8% | 16.9% |
| Gkw ($GKW) | | | | | 15.5% |
| Paushak ($PAUSHAK) | | | | | 12.3% |
| |
|---|
| Median (18 companies) | 7.1% | 8.9% | 5.2% | 3.6% | 4.0% |
|---|
| Merckbbph ($MERCKBBPH) | 2.7% | 2.1% | 4.3% | 4.9% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaleconbbph ($KALECONBBPH) | | | 89.0% | 103.8% | 81.0% |
| Bharat Rasayan ($BHARATRA) | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% |
| Uplbbph ($UPLBBPH) | 16.3% | 17.1% | 15.9% | 18.2% | 22.1% |
| Ginni Filaments ($GINNIFIL) | 11.6% | -1.0% | 15.2% | 21.6% | 12.8% |
| Rane Brake Lining ($RANEBRAKE) | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% |
| |
|---|
| Median (28 companies) | 10.1% | 8.4% | 5.8% | 5.3% | 3.1% |
|---|
| Merckbbph ($MERCKBBPH) | 20.9% | 21.3% | 13.1% | 8.6% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 5.3x | 9.8x | 16.3x | 27.4x | 140.3x |
| Indbulbbph ($INDBULBBPH) | 8.5x | 4.3x | 4.8x | 5.5x | 9.6x |
| Jklakbbph ($JKLAKBBPH) | 3.0x | 2.1x | 2.3x | 5.3x | 5.5x |
| Asleyf ($ASLEYF) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Rane Engine Valve ($RANENGIN) | 1.7x | 2.1x | 11.3x | 4.5x | 4.8x |
| |
|---|
| Median (16 companies) | 1.8x | 2.1x | 2.5x | 2.7x | 2.5x |
|---|
| Merckbbph ($MERCKBBPH) | -0.3x | -0.0x | -0.1x | -0.1x | -2.2x |
