Essel Propack Net Income surged on 29.5% while Revenue decreased on 6.0%
28-04-2016 • About Essel Propack (
$ESSELPRO) • By InTwits
Essel Propack reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Essel Propack has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.7%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: ₹1,092m in FY2016, ₹88m in FY2015, ₹1,467m in FY2014, ₹5,150m in FY2013, ₹15,307m in FY2012
- The company has highly profitable business model: ROIC is 16.6%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 1.1x
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 decreased on 6.0%. During the last 5 years Revenue growth topped in FY2014 at 17.5% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from 17.2% to 19.4% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin increased on 2.3 pp from 6.1% to 8.3% in FY2016. Net Income margin followed a growing trend at 1.2 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Essel Propack's CAPEX/Revenue was 8.9% in FY2016. Essel Propack's CAPEX/Revenue increased on 2.2 pp from 6.7% in FY2013 to 8.9% in FY2016. For the last three years the average CAPEX/Revenue was 8.9%.
Return on investment
The company operates at high and attractive ROE (20.7%) while ROIC is a bit lower (16.6%). ROIC increased slightly on 1.9 pp from 14.7% to 16.6% in FY2016. ROE increased slightly on 1.8 pp from 18.9% to 20.7% in FY2016. ROIC grew at 2.1 pp per annum in the last 5 years. ROE followed a growing trend at 3.9 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.7x from 2.2x to 1.6x in FY2016. Debt dropped on 24.2% while cash decreased on 7.0%. Net Debt/EBITDA followed a declining trend at -0.4x per annum in FY2012-FY2016.
Essel Propack has short term refinancing risk: cash is only 42.9% of short term debt.
Financial and operational results
Essel Propack ($ESSELPRO) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15,697 | 18,101 | 21,266 | 23,230 | 21,846 | -6.0% |
| SG&A | | | | 5 | 3 | -45.6% |
| EBITDA | 2,671 | 3,150 | 3,600 | 3,986 | 4,236 | 6.3% |
| Net Income | 514 | 810 | 1,078 | 1,406 | 1,821 | 29.5% |
Balance Sheet
|
|---|
| Cash | 874 | 633 | 746 | 749 | 696 | -7.0% |
| Short Term Debt | 5,122 | 4,187 | 3,795 | 3,184 | 1,623 | -49.0% |
| Long Term Debt | 4,229 | 5,437 | 6,449 | 6,434 | 5,669 | -11.9% |
Cash flow
|
|---|
| Capex | 1,567 | 1,221 | 1,801 | 2,186 | 1,943 | -11.1% |
Ratios
|
|---|
| Revenue growth | 12.6% | 15.3% | 17.5% | 9.2% | -6.0% | |
| EBITDA growth | 7.4% | 18.0% | 14.3% | 10.7% | 6.3% | |
|
|---|
| EBITDA Margin | 17.0% | 17.4% | 16.9% | 17.2% | 19.4% | 2.2% |
| SG&A, % of revenue | | | | 0.0% | 0.0% | -0.0% |
| Net Income Margin | 3.3% | 4.5% | 5.1% | 6.1% | 8.3% | 2.3% |
| CAPEX, % of revenue | 10.0% | 6.7% | 8.5% | 9.4% | 8.9% | -0.5% |
|
|---|
| ROIC | 8.6% | 9.9% | 12.5% | 14.7% | 16.6% | 1.9% |
| ROE | 6.0% | 8.9% | 13.1% | 18.9% | 20.7% | 1.8% |
| Net Debt/EBITDA | 3.2x | 2.9x | 2.6x | 2.2x | 1.6x | -0.7x |
Peers in Containers & Packaging
Below you can find Essel Propack 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($EMMBI) | 35.6% | 36.6% | 13.9% | 14.8% | - |
| |
|---|
| Median (19 companies) | 18.0% | 16.9% | 13.9% | 8.4% | - |
|---|
| Essel Propack ($ESSELPRO) | - | 15.3% | 17.5% | 9.2% | -6.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 13.9% | 19.2% | 22.5% | 25.2% | - |
| Manaksia ($MANAKSIA) | 14.4% | 17.4% | 20.3% | 18.6% | - |
| Time Technoplast ($TIMETECHNO) | 15.9% | 16.2% | 14.1% | 13.7% | - |
| Piramal Glass ($PIRAMGLAS) | 23.7% | 18.9% | 15.5% | 13.5% | - |
| Kg Petrochem ($KGPETRO) | 16.0% | 12.8% | 14.7% | 12.5% | - |
| |
|---|
| Median (22 companies) | 12.9% | 10.6% | 11.4% | 8.8% | - |
|---|
| Essel Propack ($ESSELPRO) | 17.0% | 17.4% | 16.9% | 17.2% | 19.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 3.0% | 5.0% | 7.5% | 11.9% | - |
| Manaksia ($MANAKSIA) | 9.0% | 4.8% | 4.7% | 6.5% | - |
| Piramal Glass ($PIRAMGLAS) | 20.7% | 6.0% | 7.7% | 4.6% | - |
| Time Technoplast ($TIMETECHNO) | 17.9% | 11.1% | 6.2% | 4.2% | - |
| Uflex ($UFLEX) | 23.0% | 11.8% | 3.5% | 3.6% | - |
| |
|---|
| Median (6 companies) | 8.6% | 8.6% | 6.5% | 4.4% | - |
|---|
| Essel Propack ($ESSELPRO) | 10.0% | 6.7% | 8.5% | 9.4% | 8.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | - | 19.7% | 22.2% | 25.2% | - |
| Time Technoplast ($TIMETECHNO) | 12.8% | 13.4% | 12.0% | 12.9% | - |
| Manaksia ($MANAKSIA) | 12.9% | 15.5% | 16.0% | 11.4% | - |
| Uflex ($UFLEX) | 12.5% | 9.9% | 8.1% | 8.4% | - |
| Piramal Glass ($PIRAMGLAS) | 16.1% | 11.0% | 7.6% | 7.0% | - |
| |
|---|
| Median (32 companies) | 9.4% | 9.9% | 11.2% | 9.9% | - |
|---|
| Essel Propack ($ESSELPRO) | 8.6% | 9.9% | 12.5% | 14.7% | 16.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 7.4x | 15.8x | 11.2x | 10.6x | - |
| Piramal Glass ($PIRAMGLAS) | 3.1x | 4.1x | 4.3x | 4.2x | - |
| Uflex ($UFLEX) | 2.7x | 3.0x | 3.2x | 2.8x | - |
| Time Technoplast ($TIMETECHNO) | 2.6x | 2.6x | 2.6x | 2.2x | - |
| Manaksia ($MANAKSIA) | 1.3x | 1.2x | 0.3x | 0.9x | - |
| |
|---|
| Median (20 companies) | 3.2x | 3.5x | 0.9x | 0.0x | - |
|---|
| Essel Propack ($ESSELPRO) | 3.2x | 2.9x | 2.6x | 2.2x | 1.6x |
