Ptl Enterprises CAPEX jumped on 36.4% while Revenue decreased on 2.4%
11-05-2016 • About Ptl Enterprises (
$PTL) • By InTwits
Ptl Enterprises reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ptl Enterprises has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: ₹233m in FY2016, ₹171m in FY2015, ₹73m in FY2014, ₹115m in FY2013, ₹113m in FY2012
- The company has highly profitable business model: ROIC is 12.8%
- It operates with high leverage: Net Debt/EBITDA is 0.5x 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
The company's Revenue decreased on 2.4%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 18.5% to 20.9% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 18.5%.
Net Income margin increased on 3.2 pp from 8.2% to 11.4% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 6.6% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Ptl Enterprises had CAPEX/Revenue of 5.8%. Ptl Enterprises showed small growth in CAPEX/Revenue of 1.4 pp from 4.5% in FY2013 to 5.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.1%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 2.4% and was growing since that time.
Return on investment
The company operates at good ROIC (12.8%) while ROE is low (9.7%). ROIC decreased on 9.3 pp from 22.1% to 12.8% in FY2016. ROE dropped on 13.5 pp from 23.2% to 9.7% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 22.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.7x from 1.2x to 0.5x in FY2016. Debt dropped on 56.8% while cash dropped on 69.1%. Net Debt/EBITDA stuck to a declining trend at -0.4x per annum in FY2012-FY2016.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
Ptl Enterprises's trades at EV/EBITDA 11.1x and P/E 19.4x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 15.3x with the industry average at 22.8x.
Financial and operational results
Ptl Enterprises ($PTL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,291 | 2,580 | 3,038 | 4,104 | 4,004 | -2.4% |
| EBITDA | 609 | 585 | 655 | 760 | 835 | 10.0% |
| Net Income | 175 | 171 | 243 | 335 | 455 | 35.7% |
Balance Sheet
|
|---|
| Cash | 59 | 77 | 218 | 270 | 83 | -69.1% |
| Short Term Debt | 67 | 42 | 404 | 458 | 0 | -100.0% |
| Long Term Debt | 1,362 | 1,206 | 1,100 | 690 | 496 | -28.1% |
Cash flow
|
|---|
| Capex | 113 | 115 | 73 | 171 | 233 | 36.4% |
Ratios
|
|---|
| Revenue growth | 17.9% | 12.6% | 17.7% | 35.1% | -2.4% | |
| EBITDA growth | 13.7% | -4.0% | 12.0% | 15.9% | 10.0% | |
|
|---|
| EBITDA Margin | 26.6% | 22.7% | 21.6% | 18.5% | 20.9% | 2.4% |
| Net Income Margin | 7.6% | 6.6% | 8.0% | 8.2% | 11.4% | 3.2% |
| CAPEX, % of revenue | 5.0% | 4.5% | 2.4% | 4.2% | 5.8% | 1.7% |
|
|---|
| ROIC | 18.5% | 19.5% | 21.1% | 22.1% | 12.8% | -9.3% |
| ROE | 17.3% | 15.5% | 19.7% | 23.2% | 9.7% | -13.5% |
| Net Debt/EBITDA | 2.2x | 2.0x | 2.0x | 1.2x | 0.5x | -0.7x |
Peers in Comm.Trading & Distribution
Below we provide Ptl Enterprises benchmarking against other companies in Comm.Trading & Distribution 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 |
|---|
| Shri Krishna Prasadam ($SKP) | 69.6% | 57.3% | 1,074.7% | 148.2% | - |
| Sunil Industries ($SUNILTX) | 15.9% | 57.2% | 12.1% | 59.6% | - |
| Gagan Polycot India ($GAGANPO) | -59.4% | 76.3% | 18.2% | 43.2% | - |
| Parker Agrochem Exports ($PARKERAC) | -77.2% | 1,542.3% | 39.1% | 33.1% | - |
| Risa International ($RISAINTL) | - | - | 4,724.7% | 18.8% | - |
| |
|---|
| Median (19 companies) | 4.1% | 13.6% | 12.9% | 10.9% | 48.4% |
|---|
| Ptl Enterprises ($PTL) | - | 12.6% | 17.7% | 35.1% | -2.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hexa Tradex ($HEXATRADEX) | - | - | - | 48.1% | - |
| Indiabulls Wholesale Services ($IBWSL) | 30.8% | 25.9% | 19.4% | 21.4% | 27.6% |
| Bombay Cycle & Motor Agency ($BOMBCYC) | - | - | - | 19.5% | - |
| Remi Elektrotechnik ($REMIELEK) | - | - | - | 15.1% | - |
| Maxwell Industries ($MAXWELL) | 9.9% | 6.7% | 9.0% | 10.7% | - |
| |
|---|
| Median (37 companies) | 2.8% | 2.7% | 2.0% | 2.4% | 27.6% |
|---|
| Ptl Enterprises ($PTL) | 26.6% | 22.7% | 21.6% | 18.5% | 20.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Maxwell Industries ($MAXWELL) | 0.9% | 1.9% | 2.4% | 1.8% | - |
| Redington (India) ($REDINGTON) | 0.2% | 0.7% | 0.2% | 0.2% | - |
| Mmtc ($MMTC) | 0.0% | 0.1% | 0.1% | 0.1% | - |
| Kothari Products ($KOTHARIPRO) | 2.5% | 0.1% | 0.2% | 0.0% | - |
| |
|---|
| Median (4 companies) | 0.3% | 0.1% | 0.2% | 0.1% | - |
|---|
| Ptl Enterprises ($PTL) | 5.0% | 4.5% | 2.4% | 4.2% | 5.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redington (India) ($REDINGTON) | 17.2% | 16.0% | 16.3% | 15.3% | - |
| Risa International ($RISAINTL) | - | -0.2% | 14.8% | 11.9% | - |
| Maxwell Industries ($MAXWELL) | 9.0% | 6.6% | 9.6% | 11.2% | - |
| Kothari Products ($KOTHARIPRO) | 23.4% | 20.0% | 28.3% | 10.6% | - |
| Edynamics Solutions ($EDSL) | 0.8% | 0.9% | 0.2% | 0.2% | - |
| |
|---|
| Median (52 companies) | 4.5% | 4.7% | 8.2% | 10.9% | - |
|---|
| Ptl Enterprises ($PTL) | 18.5% | 19.5% | 21.1% | 22.1% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Maxwell Industries ($MAXWELL) | 3.7x | 5.8x | 3.5x | 3.3x | - |
| Redington (India) ($REDINGTON) | 2.6x | 2.6x | 1.7x | 1.9x | - |
| Kothari Products ($KOTHARIPRO) | 1.2x | 0.6x | 0.4x | 1.4x | - |
| Rama Vision ($RAMAVISION) | -1.8x | 0.3x | 0.0x | 0.0x | - |
| Ph Capital ($PHCAP) | - | - | 18.4x | 0.0x | - |
| |
|---|
| Median (29 companies) | 1.6x | 1.7x | 0.0x | 0.0x | 0.0x |
|---|
| Ptl Enterprises ($PTL) | 2.2x | 2.0x | 2.0x | 1.2x | 0.5x |
