Rilbbph reports 26.3% revenue decline in FY2016 and 5.8 pp EBITDA Margin growth from 10.0% to 15.8%
22-04-2016 • About Rilbbph (
$RILBBPH) • By InTwits
Rilbbph reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Rilbbph has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's in pair with industry average of 10.7%
- CAPEX is quite volatile: ₹496,620m in FY2016, ₹633,640m in FY2015, ₹600,870m in FY2014, ₹307,260m in FY2013, ₹163,810m in FY2012
- The company has business model with low profitability: ROIC is 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Rilbbph's Revenue dropped on 26.3%. Revenue decline was accelerating on average at -14.7 pp per annum in FY2012-FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.8 pp from 10.0% to 15.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 8.1% and was growing since that time.
Net Income margin increased on 3.7 pp from 6.3% to 10.0% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 5.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 18.0%. Rilbbph showed fast CAPEX/Revenue growth of 10.2 pp from 7.7% in FY2013 to 18.0% in FY2016. Average CAPEX/Revenue for the last three years was 16.2%. The company has spent a lot to CAPEX (114% of EBITDA) which didn't stop revenue from falling. CAPEX as a % of Revenue grew at 3.6 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low ROIC (7.3%) and ROE (12.0%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.66 pp from 11.3% to 12.0% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 7.0%. During the last 5 years ROE bottomed in FY2015 at 11.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.9x and Debt / EBITDA is 4.2x. Net Debt / EBITDA decreased on 0.029x from 3.9x to 3.9x in FY2016. Debt jumped on 13.0% while cash dropped on 14.8%. Net Debt/EBITDA grew at 0.6x per annum in the last 5 years.
Rilbbph has short term refinancing risk: cash is only 26.8% of short term debt.
Financial and operational results
Rilbbph ($RILBBPH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,585,010 | 3,970,620 | 4,344,600 | 3,754,350 | 2,765,440 | -26.3% |
| EBITDA | 347,630 | 329,880 | 350,300 | 376,010 | 437,070 | 16.2% |
| Net Income | 197,240 | 208,790 | 224,930 | 235,660 | 276,300 | 17.2% |
Balance Sheet
|
|---|
| Cash | 338,400 | 372,670 | 379,090 | 125,200 | 106,710 | -14.8% |
| Short Term Debt | 270,950 | 362,590 | 377,420 | 400,860 | 398,180 | -0.7% |
| Long Term Debt | 653,520 | 709,600 | 1,010,160 | 1,207,770 | 1,420,000 | 17.6% |
Cash flow
|
|---|
| Capex | 163,810 | 307,260 | 600,870 | 633,640 | 496,620 | -21.6% |
Ratios
|
|---|
| Revenue growth | 34.9% | 10.8% | 9.4% | -13.6% | -26.3% | |
| EBITDA growth | -8.0% | -5.1% | 6.2% | 7.3% | 16.2% | |
|
|---|
| EBITDA Margin | 9.7% | 8.3% | 8.1% | 10.0% | 15.8% | 5.8% |
| Net Income Margin | 5.5% | 5.3% | 5.2% | 6.3% | 10.0% | 3.7% |
| CAPEX, % of revenue | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% | 1.1% |
|
|---|
| ROIC | 8.5% | 7.6% | 7.3% | 7.0% | 7.3% | 0.4% |
| ROE | 12.2% | 11.9% | 11.8% | 11.3% | 12.0% | 0.7% |
| Net Debt/EBITDA | 1.7x | 2.1x | 2.9x | 3.9x | 3.9x | -0.0x |
Peers in
Below you can find Rilbbph 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($BHARATRA) | 51.3% | 32.1% | 92.7% | 21.4% | - |
| |
|---|
| Median (16 companies) | 17.7% | 11.1% | 3.5% | 9.2% | - |
|---|
| Rilbbph ($RILBBPH) | - | 10.8% | 9.4% | -13.6% | -26.3% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($INDBULBBPH) | 36.7% | 34.6% | 29.5% | 23.5% | - |
| |
|---|
| Median (19 companies) | 16.0% | 16.6% | 16.9% | 11.0% | 9.6% |
|---|
| Rilbbph ($RILBBPH) | 9.7% | 8.3% | 8.1% | 10.0% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 131.4% | 5.2% | 139.2% | 89.2% | - |
| Jklakbbph ($JKLAKBBPH) | 28.5% | 28.8% | 24.6% | 23.6% | - |
| Gkw ($GKW) | - | - | - | 15.5% | - |
| Paushak ($PAUSHAK) | - | - | - | 12.3% | - |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | - | - | - | 8.8% | - |
| |
|---|
| Median (16 companies) | 9.9% | 5.2% | 3.8% | 5.0% | 0.5% |
|---|
| Rilbbph ($RILBBPH) | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaleconbbph ($KALECONBBPH) | - | 89.0% | 103.8% | 81.0% | - |
| Bharat Rasayan ($BHARATRA) | 22.1% | 13.7% | 21.9% | 26.1% | - |
| Uplbbph ($UPLBBPH) | 17.1% | 15.9% | 18.2% | 22.1% | - |
| Rane Brake Lining ($RANEBRAKE) | 14.1% | 7.9% | 11.1% | 12.8% | - |
| Merckbbph ($MERCKBBPH) | 21.3% | 13.1% | 8.6% | 10.6% | - |
| |
|---|
| Median (27 companies) | 9.3% | 5.8% | 5.3% | 3.1% | 0.0% |
|---|
| Rilbbph ($RILBBPH) | 8.5% | 7.6% | 7.3% | 7.0% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 9.8x | 16.3x | 27.4x | 140.3x | - |
| Indbulbbph ($INDBULBBPH) | 4.3x | 4.8x | 5.5x | 9.6x | - |
| Jklakbbph ($JKLAKBBPH) | 2.1x | 2.3x | 5.3x | 5.5x | - |
| Asleyf ($ASLEYF) | 2.5x | 5.0x | 17.8x | 5.0x | - |
| Rane Engine Valve ($RANENGIN) | 2.1x | 11.3x | 4.5x | 4.8x | - |
| |
|---|
| Median (15 companies) | 2.1x | 2.3x | 2.2x | 1.1x | 0.0x |
|---|
| Rilbbph ($RILBBPH) | 1.7x | 2.1x | 2.9x | 3.9x | 3.9x |
