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Page Industries reports 18.7% Net Income growth in 2016 and 15.5% Revenue growth

24-05-2016 • About Page Industries ($PAGEIND) • By InTwits

Page Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Page Industries is a fast growth stock: FY2016 revenue growth was 15.5%, 5 year revenue CAGR was 29.4% at FY2016 ROIC 60.1%
  • EBITDA Margin is relatively stable: 21.2% in FY2016 vs. 20.7% in FY2015 vs. 21.1% in FY2012
  • Page Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 1.5%.
  • CAPEX is quite volatile: ₹93m in FY2016, ₹143m in FY2015, ₹142m in FY2014, ₹376m in FY2013, ₹581m in FY2012
  • The company has highly profitable business model: ROIC is 60.1%
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 15.5%. EBITDA Margin showed almost no change in FY2016.

Net Income margin showed almost no change in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at 12.7%.

Investments (CAPEX, working capital and M&A)


Page Industries's CAPEX/Revenue was 1.5% in FY2016. The company showed decline in CAPEX/Revenue of 3.7 pp from 5.2% in FY2013 to 1.5% in FY2016. For the last three years the average CAPEX/Revenue was 3.2%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2013 at 5.2% and was declining since that time.

Return on investment


The company operates at high and attractive ROIC (60.1%) and ROE (52.2%). ROIC increased slightly on 0.86 pp from 59.2% to 60.1% in FY2016. ROE decreased on 5.8 pp from 58.0% to 52.2% in FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.2x from 0.5x to 0.2x in FY2016. Debt dropped on 39.7% while cash jumped on 97.1%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 0.6x and was declining since that time.

Page Industries has short term refinancing risk: cash is only 12.1% of short term debt.

Valuation and dividends


The company's trades at EV/EBITDA 38.6x and P/E 62.2x while industy averages are 17.8x and 21.9x. Page Industries's EV/(EBITDA-CAPEX) is 41.5x with the industry average at 22.8x.

Management team


The company's CEO is Vedji Ticku. Vedji Ticku has 4 years tenure with the company. Pius Thomas is a the company's CFO. Pius Thomas has spent 6 years at the company.

Financial and operational results


Page Industries ($PAGEIND) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue6,8348,63511,87715,43417,83415.5%
EBITDA1,4411,7682,5513,1943,77318.1%
Net Income9001,1251,5381,9602,32718.7%
Balance Sheet
Cash203134438597.1%
Short Term Debt5407161,2991,227706-42.5%
Long Term Debt219291333345243-29.6%
Cash flow
Capex271450526549264-52.0%
Ratios
Revenue growth39.0%26.3%37.5%30.0%15.5%
EBITDA growth47.6%22.6%44.3%25.2%18.1%
EBITDA Margin21.1%20.5%21.5%20.7%21.2%0.5%
Net Income Margin13.2%13.0%12.9%12.7%13.0%0.3%
CAPEX, % of revenue4.0%5.2%4.4%3.6%1.5%-2.1%
ROIC54.9%58.5%61.6%59.2%60.1%0.9%
ROE62.1%59.3%61.2%58.0%52.2%-5.8%
Net Debt/EBITDA0.5x0.6x0.6x0.5x0.2x-0.2x

Peers in Other Apparels & Accessories


Below you can find Page Industries benchmarking vs. other companies in Other Apparels & Accessories 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 5 FY2012 FY2013 FY2014 FY2015 FY2016
Bhartiya International ($BIL)28.4%20.9%36.7%34.7%-
Mini Diamonds (India) ($MINID)-59.6%117.1%26.9%3.1%
Cantabil Retail India ($CANTABIL)-11.6%-30.4%-3.3%25.0%-
Thangamayil Jewellery ($THANGAMAYL)72.0%34.6%-21.8%19.3%-
Shrenuj & Co ($SHRENUJ)28.3%22.6%20.2%18.1%-
 
Median (23 companies)6.0%19.1%14.1%-0.9%2.8%
Page Industries ($PAGEIND)-26.3%37.5%30.0%15.5%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Ceenik Exports (India) ($CEENIK)---27.2%-
Arrow Textiles ($ARROWTEX)---25.2%-
Banaras Beads ($BANARBEADS)---17.9%-
Rupa & Company ($RUPA)12.7%15.0%15.3%14.5%-
Ashapura Intimates Fashion ($AIFL)9.5%10.5%10.7%13.7%-
 
Median (31 companies)7.5%5.5%5.4%4.8%3.9%
Page Industries ($PAGEIND)21.1%20.5%21.5%20.7%21.2%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Zodiac Clothing Co ($ZODIACLOTH)5.7%3.9%4.0%5.0%-
Pearl Global Industries ($PGIL)0.9%0.7%1.3%3.1%-
Rupa & Company ($RUPA)1.9%3.9%1.7%2.2%-
Bhartiya International ($BIL)4.5%3.9%1.8%2.1%-
Asian Star Co ($ASTAR)0.5%1.0%0.9%0.7%0.3%
 
Median (10 companies)1.5%1.3%1.1%0.7%0.4%
Page Industries ($PAGEIND)4.0%5.2%4.4%3.6%1.5%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Ashapura Intimates Fashion ($AIFL)24.1%19.1%23.4%39.9%-
Rupa & Company ($RUPA)22.4%27.1%25.8%23.8%-
Tara Jewels ($TARAJEWELS)17.5%18.6%15.1%13.5%9.9%
Bhartiya International ($BIL)13.0%10.6%11.2%12.8%-
Asian Star Co ($ASTAR)6.6%6.9%8.5%8.2%6.6%
 
Median (40 companies)9.3%7.2%10.9%7.3%6.6%
Page Industries ($PAGEIND)54.9%58.5%61.6%59.2%60.1%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Thangamayil Jewellery ($THANGAMAYL)2.2x2.6x11.9x61.2x-
Shrenuj & Co ($SHRENUJ)9.3x11.2x11.7x13.5x-
Gokaldas Exports ($GOKEX)--3.6x10.4x-
Tribhovandas Bhimji Zaveri ($TBZ)1.6x2.7x4.1x6.6x16.2x
Asian Star Co ($ASTAR)7.1x7.1x5.9x4.8x5.2x
 
Median (24 companies)2.3x2.9x0.0x0.2x0.0x
Page Industries ($PAGEIND)0.5x0.6x0.6x0.5x0.2x


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