Indbulbbph Net Debt / EBITDA dropped on 3.2x from 9.6x to 6.5x in 2016 and Revenue increased slightly on 0.92%
25-04-2016 • About Indbulbbph (
$INDBULBBPH) • By InTwits
Indbulbbph reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Indbulbbph has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 18.0%.
- CAPEX is quite volatile: ₹264m in FY2016, ₹524m in FY2015, ₹269m in FY2014, ₹210m in FY2013, ₹323m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.3%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 9.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 0.92%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.1 pp from 23.5% to 28.7% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 23.5%.
SG&A as a % of Revenue increased slightly on 0.95 pp from 0.29% to 1.2% in FY2016.
Net Income margin increased on 2.1 pp from 9.6% to 11.7% in FY2016.
Investments (CAPEX, working capital and M&A)
Indbulbbph's CAPEX/Revenue was 1.0% in FY2016. Indbulbbph showed small CAPEX/Revenue decline of 0.60 pp from 1.6% in FY2013 to 1.0% in FY2016. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (5.3%) and ROE (4.1%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.53 pp from 3.5% to 4.1% in FY2016. ROIC grew at 0.37 pp per annum in the last 5 years. ROE followed a growing trend at 0.54 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 6.5x Net Debt / EBITDA and 8.1x Debt / EBITDA. Net Debt / EBITDA dropped on 3.2x from 9.6x to 6.5x in FY2016. Debt decreased on 7.1% while cash surged on 85.8%. During the last 5 years Net Debt/EBITDA topped in FY2015 at 9.6x.
Indbulbbph has no short term refinancing risk: cash is higher than short term debt (106.5%).
Financial and operational results
Indbulbbph ($INDBULBBPH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,916 | 13,006 | 17,362 | 25,908 | 26,146 | 0.9% |
| SG&A | | | | 75 | 325 | 330.4% |
| EBITDA | 5,113 | 4,505 | 5,124 | 6,094 | 7,493 | 23.0% |
| Net Income | 1,658 | 1,742 | 2,238 | 2,481 | 3,050 | 23.0% |
Balance Sheet
|
|---|
| Cash | 493 | 3,884 | 1,557 | 6,689 | 12,427 | 85.8% |
| Short Term Debt | 3,357 | 7,252 | 5,493 | 10,462 | 11,669 | 11.5% |
| Long Term Debt | 18,887 | 18,280 | 24,279 | 54,976 | 49,132 | -10.6% |
Cash flow
|
|---|
| Capex | 323 | 210 | 269 | 524 | 264 | -49.5% |
Ratios
|
|---|
| Revenue growth | -3.2% | -6.5% | 33.5% | 49.2% | 0.9% | |
| EBITDA growth | 27.6% | -11.9% | 13.7% | 18.9% | 23.0% | |
|
|---|
| EBITDA Margin | 36.7% | 34.6% | 29.5% | 23.5% | 28.7% | 5.1% |
| SG&A, % of revenue | | | | 0.3% | 1.2% | 1.0% |
| Net Income Margin | 11.9% | 13.4% | 12.9% | 9.6% | 11.7% | 2.1% |
| CAPEX, % of revenue | 2.3% | 1.6% | 1.5% | 2.0% | 1.0% | -1.0% |
|
|---|
| ROIC | 3.8% | 4.2% | 4.9% | 4.9% | 5.3% | 0.4% |
| ROE | 1.9% | 2.5% | 3.3% | 3.5% | 4.1% | 0.5% |
| Net Debt/EBITDA | 4.3x | 4.8x | 5.5x | 9.6x | 6.5x | -3.2x |
Peers in
Below we provide Indbulbbph benchmarking against other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | 6.5% | -14.4% | -1.2% | 49.3% | - |
| Monetbbph ($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% | - |
| Jklakbbph ($JKLAKBBPH) | 29.9% | 19.6% | 0.0% | 12.2% | - |
| |
|---|
| Median (16 companies) | 18.0% | 11.1% | 3.5% | 9.1% | -26.3% |
|---|
| Indbulbbph ($INDBULBBPH) | - | -6.5% | 33.5% | 49.2% | 0.9% |
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% | - |
| Uplbbph ($UPLBBPH) | 18.2% | 18.3% | 18.8% | 20.0% | - |
| |
|---|
| Median (19 companies) | 15.4% | 12.4% | 14.7% | 10.7% | 9.7% |
|---|
| Indbulbbph ($INDBULBBPH) | 36.7% | 34.6% | 29.5% | 23.5% | 28.7% |
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% | - |
| Rilbbph ($RILBBPH) | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% |
| Gkw ($GKW) | - | - | - | 15.5% | - |
| Paushak ($PAUSHAK) | - | - | - | 12.3% | - |
| |
|---|
| Median (16 companies) | 9.9% | 7.4% | 4.5% | 5.2% | 0.8% |
|---|
| Indbulbbph ($INDBULBBPH) | 2.3% | 1.6% | 1.5% | 2.0% | 1.0% |
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 ($MERCKBBPH) | 21.3% | 13.1% | 8.6% | 10.6% | - |
| |
|---|
| Median (27 companies) | 9.4% | 7.6% | 5.9% | 3.5% | 0.0% |
|---|
| Indbulbbph ($INDBULBBPH) | 3.8% | 4.2% | 4.9% | 4.9% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 9.8x | 16.3x | 27.4x | 140.3x | - |
| Jklakbbph ($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 | - |
| Indian Metals & Ferro Alloys ($INDMETA-B) | 4.0x | 3.8x | 3.5x | 4.3x | - |
| |
|---|
| Median (15 companies) | 1.8x | 2.1x | 2.2x | 1.1x | 1.7x |
|---|
| Indbulbbph ($INDBULBBPH) | 4.3x | 4.8x | 5.5x | 9.6x | 6.5x |
