Jyothy Laboratories Net Income jumped on 30.4% and Revenue increased on 9.3%
23-05-2016 • About Jyothy Laboratories (
$JYOTHYLAB) • By InTwits
Jyothy Laboratories reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jyothy Laboratories is a fast growth stock: FY2016 revenue growth was 9.3%, 5 year revenue CAGR was 21.6% at FY2016 ROIC 13.2%
- Jyothy Laboratories has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: ₹1,468m in FY2016, ₹211m in FY2015, ₹1,941m in FY2014, ₹4,346m in FY2013, ₹4,084m in FY2012
- The company has highly profitable business model: ROIC is 13.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.6x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Jyothy Laboratories's Revenue increased on 9.3%. Revenue decline was accelerating on average at -8.3 pp per annum in FY2012-FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.8 pp from 18.1% to 15.3% in FY2016. EBITDA Margin stuck to a growing trend at 0.88 pp per annum in the last 5 years.
Net Income margin increased slightly on 1.6 pp from 8.0% to 9.6% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 1.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue decreased slightly on 0.86 pp from 2.5% in FY2013 to 1.7% in FY2016. For the last three years the average CAPEX/Revenue was 1.5%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 1.1%.
Return on investment
The company operates at good ROIC (13.2%) and ROE (19.4%). ROIC increased slightly on 1.2 pp from 12.1% to 13.2% in FY2016. ROE increased on 3.4 pp from 16.0% to 19.4% in FY2016. ROIC grew at 1.7 pp per annum in the last 5 years. ROE grew at 3.7 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 2.8x to 2.6x in FY2016. Debt increased on 6.5% while cash dropped on 27.7%. Net Debt/EBITDA followed a declining trend at -0.8x per annum in the last 5 years.
Jyothy Laboratories has short term refinancing risk: cash is only 3.7% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 27.0x and P/E 34.2x while industy averages are 17.8x and 21.9x. Jyothy Laboratories's EV/(EBITDA-CAPEX) is 30.9x with the industry average at 22.8x.
Financial and operational results
Jyothy Laboratories ($JYOTHYLAB) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,126 | 11,042 | 13,184 | 15,053 | 16,447 | 9.3% |
| EBITDA | 869 | 1,309 | 1,573 | 1,931 | 2,212 | 14.6% |
| Net Income | 446 | 196 | 814 | 1,211 | 1,580 | 30.4% |
Balance Sheet
|
|---|
| Cash | 662 | 192 | 354 | 309 | 223 | -27.7% |
| Short Term Debt | 1,237 | 2,027 | 68 | 1,204 | 5,994 | 398.0% |
| Long Term Debt | 4,379 | 4,268 | 5,268 | 4,490 | 73 | -98.4% |
Cash flow
|
|---|
| Capex | 247 | 279 | 237 | 171 | 274 | 60.6% |
Ratios
|
|---|
| Revenue growth | 47.3% | 21.0% | 19.4% | 14.2% | 9.3% | |
| EBITDA growth | 2.6% | 50.7% | 20.2% | 22.7% | 14.6% | |
|
|---|
| EBITDA Margin | 9.5% | 11.9% | 11.9% | 12.8% | 13.5% | 0.6% |
| Net Income Margin | 4.9% | 1.8% | 6.2% | 8.0% | 9.6% | 1.6% |
| CAPEX, % of revenue | 2.7% | 2.5% | 1.8% | 1.1% | 1.7% | 0.5% |
|
|---|
| ROIC | 6.5% | 8.7% | 10.3% | 12.1% | 13.2% | 1.2% |
| ROE | 7.2% | 3.1% | 11.9% | 16.0% | 19.4% | 3.4% |
| Net Debt/EBITDA | 5.7x | 4.7x | 3.2x | 2.8x | 2.6x | -0.1x |
Peers in Household Products
Below you can find Jyothy Laboratories benchmarking vs. other companies in Household Products 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ess Dee Aluminium ($ESSDEE) | -3.2% | 9.1% | 0.1% | 19.0% | - |
| |
|---|
| Median (1 company) | -3.2% | 9.1% | 0.1% | 19.0% | - |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | - | 21.0% | 19.4% | 14.2% | 9.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ess Dee Aluminium ($ESSDEE) | 23.3% | 21.9% | 24.7% | 21.1% | - |
| |
|---|
| Median (1 company) | 23.3% | 21.9% | 24.7% | 21.1% | - |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 9.5% | 11.9% | 11.9% | 12.8% | 13.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ess Dee Aluminium ($ESSDEE) | 19.3% | 16.8% | 35.2% | 22.2% | - |
| |
|---|
| Median (1 company) | 19.3% | 16.8% | 35.2% | 22.2% | - |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 2.7% | 2.5% | 1.8% | 1.1% | 1.7% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ess Dee Aluminium ($ESSDEE) | 11.4% | 9.9% | 10.2% | 9.1% | - |
| Hipolin ($HIPOLIN) | 2.2% | 3.3% | - | - | - |
| Pee Cee Cosma Sope ($PCCOSMA) | 6.7% | - | - | - | - |
| |
|---|
| Median (3 companies) | 6.7% | 6.6% | 10.2% | 9.1% | - |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 6.5% | 8.7% | 10.3% | 12.1% | 13.2% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ess Dee Aluminium ($ESSDEE) | 2.2x | 2.4x | 2.6x | 2.9x | - |
| |
|---|
| Median (1 company) | 2.2x | 3.6x | 2.6x | 2.9x | - |
|---|
| Jyothy Laboratories ($JYOTHYLAB) | 5.7x | 4.7x | 3.2x | 2.8x | 2.6x |
