Ccl Products (India) CAPEX jumped on 321% and Revenue increased on 5.9%
02-05-2016 • About Ccl Products (India) (
$CCL) • By InTwits
Ccl Products (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ccl Products (India) is a growth stock: FY2016 revenue growth was 5.9%, 5 year revenue CAGR was 20.7% at FY2016 ROIC 25.7%
- EBITDA Margin is relatively stable: 22.0% in FY2016 vs. 20.6% in FY2015 vs. 20.3% in FY2012
- Ccl Products (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: ₹872m in FY2016, ₹207m in FY2015, ₹597m in FY2014, ₹378m in FY2013, ₹560m in FY2012
- The company has highly profitable business model: ROIC is 25.7%
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 on 5.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 6.7% to 9.6% in FY2016.
Net Income margin increased on 2.8 pp from 10.3% to 13.1% in FY2016. Net Income margin followed a growing trend at 1.5 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 9.4% in FY2016. Ccl Products (India)'s CAPEX/Revenue increased on 3.6 pp from 5.8% in FY2013 to 9.4% in FY2016. Average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at high and attractive ROIC (25.7%) and ROE (26.2%). ROIC increased on 2.7 pp from 23.0% to 25.7% in FY2016. ROE increased on 2.7 pp from 23.5% to 26.2% in FY2016. ROIC grew at 2.4 pp per annum in the last 5 years. ROE stuck to a growing trend at 2.6 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.1x to 0.7x in FY2016. Debt dropped on 30.7% while cash dropped on 35.3%. Net Debt/EBITDA stuck to a declining trend at -0.5x per annum in FY2012-FY2016.
Ccl Products (India) has short term refinancing risk: cash is only 14.0% of short term debt.
Valuation and dividends
Ccl Products (India)'s trades at EV/EBITDA 13.3x and P/E 21.1x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 23.1x with the industry average at 22.8x.
Financial and operational results
Ccl Products (India) ($CCL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,022 | 6,507 | 7,168 | 8,806 | 9,321 | 5.9% |
| EBITDA | 1,020 | 1,307 | 1,544 | 1,815 | 2,048 | 12.9% |
| Net Income | 362 | 474 | 644 | 909 | 1,221 | 34.3% |
Balance Sheet
|
|---|
| Cash | 22 | 75 | 326 | 248 | 161 | -35.3% |
| Short Term Debt | 1,617 | 1,773 | 1,572 | 1,388 | 1,145 | -17.5% |
| Long Term Debt | 1,062 | 1,248 | 1,349 | 904 | 443 | -51.0% |
Cash flow
|
|---|
| Capex | 560 | 378 | 597 | 207 | 872 | 321.3% |
Ratios
|
|---|
| Revenue growth | 38.0% | 29.6% | 10.2% | 22.8% | 5.9% | |
| EBITDA growth | 55.5% | 28.1% | 18.1% | 17.6% | 12.9% | |
|
|---|
| EBITDA Margin | 20.3% | 20.1% | 21.5% | 20.6% | 22.0% | 1.4% |
| Net Income Margin | 7.2% | 7.3% | 9.0% | 10.3% | 13.1% | 2.8% |
| CAPEX, % of revenue | 11.1% | 5.8% | 8.3% | 2.4% | 9.4% | 7.0% |
|
|---|
| ROIC | 16.1% | 18.0% | 19.7% | 23.0% | 25.7% | 2.7% |
| ROE | 15.9% | 18.3% | 20.4% | 23.5% | 26.2% | 2.7% |
| Net Debt/EBITDA | 2.6x | 2.3x | 1.7x | 1.1x | 0.7x | -0.4x |
Peers in Tea & Coffee
Below we provide Ccl Products (India) benchmarking against other companies in Tea & Coffee 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 |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 15.7% | 10.0% | 11.5% | 12.7% | - |
| Diana Tea Co ($DIANATEA) | -12.6% | -11.1% | 9.9% | 11.6% | - |
| Goodricke Group ($GOODRICKE) | 17.5% | 7.4% | 4.3% | 9.9% | - |
| Tata Coffee ($TATACOFFEE) | 19.1% | 7.3% | -3.0% | 5.1% | - |
| Tata Global Beverages ($TATAGLOBAL) | - | 10.4% | 4.8% | 4.9% | -18.3% |
| |
|---|
| Median (10 companies) | 14.8% | 8.7% | 8.9% | 4.8% | -18.3% |
|---|
| Ccl Products (India) ($CCL) | - | 29.6% | 10.2% | 22.8% | 5.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Coffee ($TATACOFFEE) | 12.8% | 19.2% | 19.9% | 20.2% | - |
| B & A ($BNALTD) | 18.4% | 17.1% | 17.1% | 14.8% | - |
| Rossell India ($ROSSELLIND) | 31.0% | 27.5% | 26.5% | 14.7% | - |
| Bombay Burmah Trading Corp ($BBTC) | 6.0% | 6.8% | 8.6% | 10.5% | - |
| Tata Global Beverages ($TATAGLOBAL) | 9.5% | 10.6% | 9.9% | 9.7% | 10.0% |
| |
|---|
| Median (9 companies) | 8.7% | 13.8% | 13.5% | 9.7% | 7.7% |
|---|
| Ccl Products (India) ($CCL) | 20.3% | 20.1% | 21.5% | 20.6% | 22.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rossell India ($ROSSELLIND) | 11.0% | 6.7% | 14.8% | 11.1% | - |
| Mcleod Russel India ($MCLEODRUSS) | 10.0% | 6.0% | 9.4% | 9.8% | - |
| Tata Coffee ($TATACOFFEE) | 3.2% | 4.3% | 4.0% | 3.6% | - |
| Andrew Yule & Company ($ANDREWYU) | 2.8% | 1.8% | 2.4% | 2.9% | - |
| Tata Global Beverages ($TATAGLOBAL) | 2.0% | 2.5% | 2.7% | 2.2% | 2.4% |
| |
|---|
| Median (6 companies) | 4.1% | 3.1% | 2.6% | 3.3% | 2.7% |
|---|
| Ccl Products (India) ($CCL) | 11.1% | 5.8% | 8.3% | 2.4% | 9.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 10.7% | 13.9% | 20.6% | 23.7% | - |
| Tata Coffee ($TATACOFFEE) | 10.9% | 16.2% | 14.0% | 14.0% | - |
| Tata Global Beverages ($TATAGLOBAL) | 8.2% | 9.6% | 8.1% | 8.0% | 6.5% |
| Rossell India ($ROSSELLIND) | - | 12.1% | 12.7% | 4.1% | - |
| Andrew Yule & Company ($ANDREWYU) | 4.0% | 3.7% | 6.5% | 2.6% | - |
| |
|---|
| Median (13 companies) | 10.7% | 13.3% | 13.4% | 6.0% | 4.5% |
|---|
| Ccl Products (India) ($CCL) | 16.1% | 18.0% | 19.7% | 23.0% | 25.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcleod Russel India ($MCLEODRUSS) | 0.4x | 0.5x | 0.7x | 4.2x | - |
| Rossell India ($ROSSELLIND) | 0.0x | 1.9x | 1.5x | 2.6x | - |
| Tata Coffee ($TATACOFFEE) | 3.6x | 2.6x | 2.7x | 2.5x | - |
| Andrew Yule & Company ($ANDREWYU) | 2.1x | 5.4x | 1.9x | 1.7x | - |
| Tata Global Beverages ($TATAGLOBAL) | 1.4x | 1.5x | 1.0x | 1.0x | 1.3x |
| |
|---|
| Median (9 companies) | 1.4x | 1.7x | 0.4x | 1.0x | 5.8x |
|---|
| Ccl Products (India) ($CCL) | 2.6x | 2.3x | 1.7x | 1.1x | 0.7x |
