Yash Papers reports 15.7 pp EBITDA Margin decline from 15.7% to in 2016 in 2016

23-04-2016 • About Yash Papers ($YASHPPR) • By InTwits

Yash Papers reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

EBITDA Margin is declining: in FY2016 vs. 15.7% in FY2015 vs. 15.7% in FY2012
It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 2.0x

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Yash Papers's Revenue increased slightly on 0.62%.

Net Income margin increased on 5.5 pp from -3.9% to 1.6% in FY2016.

Management team

Yash Papers's CFO is Anil Kumar Gupta. Anil Kumar Gupta has 5 years tenure at the company.

Financial and operational results

Yash Papers ($YASHPPR) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	1,092	1,053	1,469	1,723	1,733	0.6%
EBITDA	172	177	235	270
Net Income	-11	-11	19	-67	29
Balance Sheet
Cash	6	13	15
Short Term Debt	263	297	406
Long Term Debt	641	683	670
Cash flow
Capex	10
Ratios
Revenue growth	9.0%	-3.6%	39.5%	17.3%	0.6%
EBITDA growth	10.1%	3.2%	32.7%	14.9%

EBITDA Margin	15.7%	16.8%	16.0%	15.7%
Net Income Margin	-1.0%	-1.1%	1.3%	-3.9%	1.6%	5.5%
CAPEX, % of revenue	0.9%

ROIC	8.3%	8.3%	11.5%
ROE	-2.8%	-2.6%	4.3%
Net Debt/EBITDA	5.2x	5.5x	4.5x	0.0x

Peers in Paper & Paper Products

Below we provide Yash Papers benchmarking against other companies in Paper & Paper Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
N.R.Agarwal Industries ($NRAGRINDQ)	5.5%	4.0%	5.5%	34.1%	-
South India Paper Mills ($STHINPA)	2.2%	-1.1%	-14.7%	29.2%	-
Pudumjee Pulp & Paper Mills ($PDUMJEPULP)	2.1%	8.4%	4.9%	26.5%	-
Tcpl Packaging ($TCPLPACK)	17.8%	33.7%	5.8%	26.1%	-
Jk Paper ($JKPAPER)	7.9%	9.4%	18.5%	24.3%	-
Median (14 companies)	9.1%	6.6%	7.5%	-0.3%	-
Yash Papers ($YASHPPR)	-	-3.6%	39.5%	17.3%	0.6%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Tamil Nadu Newsprint & Papers ($TNPL)	21.0%	22.2%	22.5%	24.0%	-
Tcpl Packaging ($TCPLPACK)	16.1%	14.9%	15.7%	16.5%	-
South India Paper Mills ($STHINPA)	13.5%	16.1%	10.2%	15.8%	-
Kuantum Papers ($KUANTUM)	11.2%	14.2%	15.9%	12.7%	-
Emami Paper Mills ($EMAMIPAP)	13.3%	15.0%	14.5%	11.4%	-
Median (15 companies)	11.6%	11.8%	13.2%	9.8%	-
Yash Papers ($YASHPPR)	15.7%	16.8%	16.0%	15.7%	-

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Emami Paper Mills ($EMAMIPAP)	24.4%	7.3%	19.2%	89.3%	-
Tamil Nadu Newsprint & Papers ($TNPL)	18.9%	10.4%	5.5%	35.2%	-
Tcpl Packaging ($TCPLPACK)	18.3%	8.6%	11.1%	12.1%	-
Jk Paper ($JKPAPER)	47.6%	59.5%	15.9%	4.2%	-
Median (4 companies)	13.2%	9.5%	13.5%	23.6%	-

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Tcpl Packaging ($TCPLPACK)	15.4%	17.4%	16.9%	23.1%	-
Tamil Nadu Newsprint & Papers ($TNPL)	5.3%	8.2%	11.1%	12.7%	-
Jk Paper ($JKPAPER)	5.2%	2.7%	1.1%	4.3%	-
Emami Paper Mills ($EMAMIPAP)	5.8%	5.9%	5.4%	3.0%	-
Rama Pulp & Papers ($RAMAPULP)	-	10.8%	-	-	-
Median (21 companies)	7.9%	9.3%	8.3%	8.5%	-
Yash Papers ($YASHPPR)	8.3%	8.3%	11.5%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Emami Paper Mills ($EMAMIPAP)	7.4x	5.3x	5.0x	11.2x	-
Jk Paper ($JKPAPER)	6.8x	12.7x	14.1x	8.6x	-
Tamil Nadu Newsprint & Papers ($TNPL)	5.4x	3.6x	2.8x	4.0x	-
Tcpl Packaging ($TCPLPACK)	2.6x	2.3x	2.2x	1.9x	-
Sree Sakthi Paper Mills ($SREESAKHTI)	2.1x	1.7x	-	0.0x	-
Median (13 companies)	3.2x	2.7x	0.0x	0.0x	-
Yash Papers ($YASHPPR)	5.2x	5.5x	4.5x	0.0x	-

Yash Papers stock price chart

Yash Papers financials

mln.	FY2010	FY2011	FY2012

Revenue	2,006	1,002	1,092
EBITDA	168.2	155.8	171.5
Net income	0.794	30.510	-11.330
CAPEX	32.038	7.325	9.768
Debt	875.5	890.0	904.2
Cash	1.661	5.551	5.864

About Yash Papers

Yash Papers Limited operates as a paper manufacturing company in India and internationally. Its products comprise unbleached kraft for beedi wrapping, matchboxes, tobacco pouches, PE coating, wax coating, bituminization, bangles, glassware, brassware, gum tape, and interleaving uses; and packaging/stationery paper for grocery bags, envelopes, book covers, gift wrappers, and metalized paper applications. The company also provides bleached MG poster paper for the application in soaps, detergents, food packaging, tea, sugar and salt sachets, cigarette packet inner liners, and tube light packaging, as well as pharmaceutical industry applications. In addition, it offers colored craft paper for the use in envelopes, food packaging, gift wrappers, and book covers. The company sells its products through dealers. Yash Papers Limited was founded in 1981 and is based in Faizabad, India.