Eveready Industries India revenue increased on 3.5% and EBITDA Margin decreased slightly on 0.56 pp from 9.7% to 9.1%
06-05-2016 • About Eveready Industries India (
$EVEREADY) • By InTwits
Eveready Industries India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eveready Industries India has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: ₹50m in FY2016, ₹568m in FY2015, ₹1,488m in FY2014, ₹2,766m in FY2013, ₹6,510m in FY2012
- The company has business model with average profitability: ROIC is 10.4%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Eveready Industries India's Revenue increased on 3.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 12.8% to 11.7% in FY2016. EBITDA Margin grew at 1.4 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2016. Net Income margin followed a growing trend at 2.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.1% in FY2016. CAPEX/Revenue increased slightly on 0.81 pp from 1.3% in FY2013 to 2.1% in FY2016. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at low ROIC (10.4%) and ROE (7.9%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. ROIC stuck to a growing trend at 2.5 pp per annum in FY2012-FY2016. ROE followed a growing trend at 5.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.2x from 1.8x to 1.6x in FY2016. Debt dropped on 11.9% while cash showed almost no change in FY2016. Net Debt/EBITDA declined at -1.6x per annum in FY2012-FY2016.
Eveready Industries India has short term refinancing risk: cash is only 5.0% of short term debt.
Management team
Eveready Industries India's CFO Suvamoy Saha has spent 6 years with the company.
Financial and operational results
Eveready Industries India ($EVEREADY) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,001 | 10,353 | 11,534 | 12,789 | 13,233 | 3.5% |
| EBITDA | 443 | 657 | 907 | 1,240 | 1,209 | -2.5% |
| Net Income | -881 | 51 | 136 | 489 | 506 | 3.4% |
Balance Sheet
|
|---|
| Cash | 67 | 43 | 9 | 67 | 67 | 0.1% |
| Short Term Debt | 2,211 | 1,930 | 1,790 | 1,749 | 1,337 | -23.6% |
| Long Term Debt | 1,508 | 832 | 460 | 528 | 670 | 26.8% |
Cash flow
|
|---|
| Capex | 293 | 132 | 201 | 336 | 277 | -17.5% |
Ratios
|
|---|
| Revenue growth | 2.4% | -5.9% | 11.4% | 10.9% | 3.5% | |
| EBITDA growth | -36.6% | 48.2% | 38.0% | 36.8% | -2.5% | |
|
|---|
| EBITDA Margin | 4.0% | 6.3% | 7.9% | 9.7% | 9.1% | -0.6% |
| Net Income Margin | -8.0% | 0.5% | 1.2% | 3.8% | 3.8% | -0.0% |
| CAPEX, % of revenue | 2.7% | 1.3% | 1.7% | 2.6% | 2.1% | -0.5% |
|
|---|
| ROIC | 1.6% | 3.5% | 5.7% | 10.8% | 10.4% | -0.5% |
| ROE | -15.8% | 0.9% | 2.3% | 8.0% | 7.9% | -0.2% |
| Net Debt/EBITDA | 8.2x | 4.1x | 2.5x | 1.8x | 1.6x | -0.2x |
Peers in Non-Durable Household Prod.
Below we provide Eveready Industries India benchmarking against other companies in Non-Durable Household Prod. 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kokuyo Camlin ($KOKUYOCMLN) | 7.4% | 13.6% | 7.3% | 15.6% | - |
| Panasonic Energy India Company ($PANAENERG) | 5.5% | 11.4% | 8.9% | 6.2% | - |
| Linc Pen & Plastics ($LINCPENQ) | 9.2% | 10.6% | 3.1% | 0.6% | - |
| |
|---|
| Median (3 companies) | 7.4% | 11.4% | 7.3% | 6.2% | - |
|---|
| Eveready Industries India ($EVEREADY) | - | -5.9% | 11.4% | 10.9% | 3.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Energy India Company ($PANAENERG) | 3.4% | 3.4% | 6.3% | 10.2% | - |
| Linc Pen & Plastics ($LINCPENQ) | 3.8% | 5.6% | 7.5% | 7.7% | - |
| Kokuyo Camlin ($KOKUYOCMLN) | 3.3% | -1.2% | 0.7% | 3.2% | - |
| Todays Writing Instruments ($TODAYS) | - | - | - | -2.8% | - |
| |
|---|
| Median (4 companies) | 3.4% | 3.4% | 6.3% | 5.4% | - |
|---|
| Eveready Industries India ($EVEREADY) | 4.0% | 6.3% | 7.9% | 9.7% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kokuyo Camlin ($KOKUYOCMLN) | 2.6% | 3.2% | 8.3% | 3.5% | - |
| Panasonic Energy India Company ($PANAENERG) | 0.4% | 0.8% | 0.1% | 2.2% | - |
| Linc Pen & Plastics ($LINCPENQ) | 2.4% | 2.2% | 3.0% | 1.6% | - |
| |
|---|
| Median (3 companies) | 2.4% | 2.2% | 3.0% | 2.2% | - |
|---|
| Eveready Industries India ($EVEREADY) | 2.7% | 1.3% | 1.7% | 2.6% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Energy India Company ($PANAENERG) | - | - | - | 27.2% | - |
| Linc Pen & Plastics ($LINCPENQ) | 6.6% | 12.5% | 16.6% | 16.3% | - |
| Kokuyo Camlin ($KOKUYOCMLN) | 3.6% | -7.6% | -2.4% | 2.3% | - |
| High Energy Batteries (India) ($HIGHENE) | 11.6% | 10.0% | -10.2% | - | - |
| Todays Writing Instruments ($TODAYS) | -111.5% | -39.0% | - | - | - |
| |
|---|
| Median (5 companies) | 5.1% | 1.2% | -2.4% | 16.3% | - |
|---|
| Eveready Industries India ($EVEREADY) | 1.6% | 3.5% | 5.7% | 10.8% | 10.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Linc Pen & Plastics ($LINCPENQ) | 4.1x | 1.9x | 1.4x | 0.7x | - |
| Kokuyo Camlin ($KOKUYOCMLN) | 2.1x | - | 2.8x | -0.1x | - |
| Panasonic Energy India Company ($PANAENERG) | -3.3x | -2.4x | -1.6x | -1.5x | - |
| |
|---|
| Median (3 companies) | 3.0x | 1.9x | 0.7x | -0.1x | - |
|---|
| Eveready Industries India ($EVEREADY) | 8.2x | 4.1x | 2.5x | 1.8x | 1.6x |
