Jklakbbph Net Debt / EBITDA jumped on 2.8x from 5.5x to 8.3x in 2016 while EBITDA dropped on 23.1%
18-05-2016 • About Jklakbbph (
$JKLAKBBPH) • By InTwits
Jklakbbph reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jklakbbph is a growth stock: FY2016 revenue growth was 14.0%, 5 year revenue CAGR was 14.7% at FY2016 ROIC 3.0%
- Jklakbbph has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.6%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: ₹1,117m in FY2016, ₹948m in FY2015, ₹606m in FY2014, ₹393m in FY2013, ₹486m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.0%
- It operates with high leverage: Net Debt/EBITDA is 8.3x while industry average is 10.1x
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 surged on 14.0%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at 0.047% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 17.2% to 19.4% in FY2016. EBITDA Margin declined at -3.3 pp per annum in the last 5 years.
SG&A as a % of Revenue increased slightly on 1.5 pp from 2.7% to 4.2% in FY2016.
Net Income margin decreased on 3.9 pp from 4.5% to 0.57% in FY2016. During the last 5 years Net Income margin topped in FY2013 at 8.5% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Jklakbbph had CAPEX/Revenue of 17.5%. Jklakbbph's CAPEX/Revenue dropped on 11.2 pp from 28.8% in FY2013 to 17.5% in FY2016. Average CAPEX/Revenue for the last three years was 21.9%. Jklakbbph has spent a lot to CAPEX (170% of EBITDA) to fuel its growth. CAPEX as a % of Revenue declined at -2.7 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low ROIC (3.0%) and ROE (1.1%). ROIC decreased on 4.3 pp from 7.3% to 3.0% in FY2016. ROE decreased on 6.7 pp from 7.8% to 1.1% in FY2016. ROIC stuck to a declining trend at -2.6 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.3x and Debt / EBITDA is 8.4x. Net Debt / EBITDA surged on 2.8x from 5.5x to 8.3x in FY2016. Debt surged on 16.3% while cash surged on 96.4%. Net Debt/EBITDA followed a growing trend at 1.5x per annum in the last 5 years.
Jklakbbph has short term refinancing risk: cash is only 5.8% of short term debt.
Financial and operational results
Jklakbbph ($JKLAKBBPH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,181 | 20,550 | 20,559 | 23,064 | 26,282 | 14.0% |
| SG&A | | | | 624 | 1,111 | 77.9% |
| EBITDA | 3,914 | 4,842 | 3,018 | 3,526 | 2,711 | -23.1% |
| Net Income | 1,088 | 1,750 | 939 | 1,029 | 149 | -85.5% |
Balance Sheet
|
|---|
| Cash | 890 | 127 | 760 | 155 | 305 | 96.4% |
| Short Term Debt | 63 | 413 | 2,692 | 4,621 | 5,216 | 12.9% |
| Long Term Debt | 9,083 | 10,977 | 14,120 | 14,871 | 17,463 | 17.4% |
Cash flow
|
|---|
| Capex | 4,892 | 5,913 | 5,059 | 5,433 | 4,609 | -15.2% |
Ratios
|
|---|
| Revenue growth | 29.9% | 19.6% | 0.0% | 12.2% | 14.0% | |
| EBITDA growth | 57.8% | 23.7% | -37.7% | 16.8% | -23.1% | |
|
|---|
| EBITDA Margin | 22.8% | 23.6% | 14.7% | 15.3% | 10.3% | -5.0% |
| SG&A, % of revenue | | | | 2.7% | 4.2% | 1.5% |
| Net Income Margin | 6.3% | 8.5% | 4.6% | 4.5% | 0.6% | -3.9% |
| CAPEX, % of revenue | 28.5% | 28.8% | 24.6% | 23.6% | 17.5% | -6.0% |
|
|---|
| ROIC | 12.4% | 14.2% | 5.9% | 7.3% | 3.0% | -4.3% |
| ROE | 9.8% | 14.4% | 7.3% | 7.8% | 1.1% | -6.7% |
| Net Debt/EBITDA | 2.1x | 2.3x | 5.3x | 5.5x | 8.3x | 2.8x |
Peers in
Below we provide Jklakbbph 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 ($RANENGIN) | 6.5% | -14.4% | -1.2% | 49.3% | - |
| Indbulbbph ($INDBULBBPH) | - | -6.5% | 33.5% | 49.2% | 0.9% |
| Monetbbph ($MONETBBPH) | 22.3% | 3.7% | 11.6% | 40.8% | - |
| Asleyf ($ASLEYF) | 15.5% | -3.3% | -8.0% | 33.6% | - |
| Bharat Rasayan ($BHARATRA) | 51.3% | 32.1% | 92.7% | 21.4% | - |
| |
|---|
| Median (17 companies) | 17.4% | 9.7% | 3.9% | 8.8% | 0.9% |
|---|
| Jklakbbph ($JKLAKBBPH) | - | 19.6% | 0.0% | 12.2% | 14.0% |
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% | - |
| Indbulbbph ($INDBULBBPH) | 36.7% | 34.6% | 29.5% | 23.5% | 28.7% |
| |
|---|
| Median (20 companies) | 15.1% | 13.4% | 14.6% | 10.3% | 9.8% |
|---|
| Jklakbbph ($JKLAKBBPH) | 22.8% | 23.6% | 14.7% | 15.3% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 131.4% | 5.2% | 139.2% | 89.2% | - |
| Rilbbph ($RILBBPH) | 4.6% | 7.7% | 13.8% | 16.9% | 18.0% |
| Gkw ($GKW) | - | - | - | 15.5% | - |
| Paushak ($PAUSHAK) | - | - | - | 12.3% | - |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | - | - | - | 8.8% | - |
| |
|---|
| Median (17 companies) | 8.6% | 5.2% | 4.1% | 5.0% | 1.0% |
|---|
| Jklakbbph ($JKLAKBBPH) | 28.5% | 28.8% | 24.6% | 23.6% | 17.5% |
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 ($UPLBBPH) | 17.1% | 15.9% | 18.2% | 22.1% | 22.2% |
| Rane Brake Lining ($RANEBRAKE) | 14.1% | 7.9% | 11.1% | 12.8% | - |
| Merckbbph ($MERCKBBPH) | 21.3% | 13.1% | 8.6% | 10.6% | - |
| |
|---|
| Median (28 companies) | 8.4% | 6.7% | 6.3% | 3.9% | 0.0% |
|---|
| Jklakbbph ($JKLAKBBPH) | 12.4% | 14.2% | 5.9% | 7.3% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monetbbph ($MONETBBPH) | 9.8x | 16.3x | 27.4x | 140.3x | - |
| Indbulbbph ($INDBULBBPH) | 4.3x | 4.8x | 5.5x | 9.6x | 6.5x |
| 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 ($INDMETA-B) | 4.0x | 3.8x | 3.5x | 4.3x | 9.1x |
| |
|---|
| Median (16 companies) | 1.7x | 1.8x | 2.0x | 0.9x | 2.2x |
|---|
| Jklakbbph ($JKLAKBBPH) | 2.1x | 2.3x | 5.3x | 5.5x | 8.3x |
