Abbott India EBITDA jumped on 15.8% and EBITDA Margin showed almost no change
25-05-2016 • About Abbott India (
$ABBOTINDIA) • By InTwits
Abbott India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Abbott India is a growth stock: FY2016 revenue growth was 14.8%, 5 year revenue CAGR was 12.0% at FY2016 ROIC 34.1%
- EBITDA Margin is relatively stable: 14.0% in FY2016 vs. 13.8% in FY2015 vs. 12.7% in FY2012
- The company has highly profitable business model: ROIC is 34.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Abbott India's Revenue surged on 14.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.2 pp from 17.2% to 19.4% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 12.0% and was growing since that time.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 0.97%. Abbott India's CAPEX/Revenue increased slightly on 0.97 pp from in FY2013 to 0.97% in FY2016.
Return on investment
The company operates at high and attractive ROIC (34.1%) and ROE (25.4%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.2 pp from 26.5% to 25.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 1,606%.
Management team
R Sonalker is a the company's CFO. R Sonalker has spent 14 years at the company.
Financial and operational results
Abbott India ($ABBOTINDIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,131 | 17,527 | 22,313 | 22,886 | 26,284 | 14.8% |
| SG&A | | | | | 901 | |
| EBITDA | 2,043 | 2,180 | 2,683 | 3,167 | 3,668 | 15.8% |
| Net Income | 1,447 | 1,601 | 0 | 2,290 | 2,596 | 13.4% |
Balance Sheet
|
|---|
| Cash | 3,245 | 3,681 | 4,602 | 490 | 8,358 | 1,605.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 173 | | | 181 | 255 | 41.1% |
Ratios
|
|---|
| Revenue growth | 8.2% | 8.7% | 27.3% | 2.6% | 14.8% | |
| EBITDA growth | 13.5% | 6.7% | 23.1% | 18.0% | 15.8% | |
|
|---|
| EBITDA Margin | 12.7% | 12.4% | 12.0% | 13.8% | 14.0% | 0.1% |
| SG&A, % of revenue | | | | | 3.4% | |
| Net Income Margin | 9.0% | 9.1% | 0.0% | 10.0% | 9.9% | -0.1% |
| CAPEX, % of revenue | 1.1% | | | 0.8% | 1.0% | 0.2% |
|
|---|
| ROIC | 29.6% | 26.9% | 30.5% | 34.2% | 34.1% | -0.1% |
| ROE | 24.3% | 22.0% | 0.0% | 26.5% | 25.4% | -1.2% |
| Net Debt/EBITDA | -1.6x | -1.7x | -1.7x | -0.2x | -2.3x | -2.1x |
Peers in Pharmaceuticals
Below we provide Abbott India benchmarking against other companies in Pharmaceuticals 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 |
|---|
| Mangalam Drugs & Organics ($MANGALAM) | - | -18.2% | -2.1% | 79.8% | 33.7% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 39.9% | 40.4% | 42.4% | 70.2% | - |
| Lyka Labs ($LYKALABS) | 41.9% | -25.7% | -22.6% | 68.7% | - |
| Marksans Pharma ($MARKSANS) | 16.7% | 23.3% | 43.3% | 26.8% | - |
| Torrent Cables ($TORRCABS) | 27.5% | 17.4% | -42.9% | 26.5% | - |
| |
|---|
| Median (41 companies) | 19.8% | 14.9% | 12.6% | 9.2% | 12.2% |
|---|
| Abbott India ($ABBOTINDIA) | - | 8.7% | 27.3% | 2.6% | 14.8% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | - | 52.1% | 57.4% | 57.6% | 59.6% |
| Omega Laboratories ($OMEGALAB) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | 46.9% | 26.1% | 28.7% | 28.8% | 29.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Divi'S Laboratories ($DIVISLAB) | 37.2% | 38.2% | 40.2% | 37.4% | - |
| Hester Biosciences ($HESTERBIO) | - | - | - | 32.9% | - |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 40.8% | 44.3% | 44.9% | 29.2% | - |
| Natco Pharma ($NATCOPHARM) | 21.5% | 23.2% | 24.9% | 26.2% | - |
| Dr.Reddy'S Laboratories ($DRREDDY) | 25.8% | 22.9% | 25.1% | 23.2% | 25.8% |
| |
|---|
| Median (53 companies) | 12.9% | 13.4% | 15.0% | 12.0% | 18.8% |
|---|
| Abbott India ($ABBOTINDIA) | 12.7% | 12.4% | 12.0% | 13.8% | 14.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Claris Lifesciences ($CLARIS) | 58.1% | 42.9% | - | 103.1% | 15.8% |
| Wintac ($WINTAC) | - | - | - | 22.8% | - |
| Hester Biosciences ($HESTERBIO) | - | - | - | 21.5% | - |
| Ipca Laboratories ($IPCALAB) | 11.2% | 8.3% | 11.6% | 17.8% | - |
| Natco Pharma ($NATCOPHARM) | 24.4% | 16.3% | 14.4% | 14.1% | - |
| |
|---|
| Median (31 companies) | 8.2% | 7.9% | 5.8% | 6.2% | 8.7% |
|---|
| Abbott India ($ABBOTINDIA) | 1.1% | - | - | 0.8% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Marksans Pharma ($MARKSANS) | -142.4% | 34.9% | 33.8% | 41.2% | - |
| Alembic Pharmaceuticals ($APLLTD) | 27.5% | 29.1% | 41.5% | 35.7% | 62.1% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 34.1% | 29.0% | 32.4% | 35.3% | - |
| Divi'S Laboratories ($DIVISLAB) | 30.6% | 30.4% | 32.3% | 30.5% | - |
| Ngl Fine-Chem ($NGLFINE) | 9.3% | 17.9% | 22.4% | 27.5% | - |
| |
|---|
| Median (63 companies) | 13.7% | 13.2% | 14.4% | 13.0% | 13.1% |
|---|
| Abbott India ($ABBOTINDIA) | 29.6% | 26.9% | 30.5% | 34.2% | 34.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jubilant Life Sciences Limited ($JUBILANT) | 4.0x | 3.5x | 3.5x | 6.4x | 3.2x |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 2.8x | 4.5x | 6.0x | 6.2x | - |
| Claris Lifesciences ($CLARIS) | 1.9x | 1.1x | 1.8x | 3.2x | 2.9x |
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 3.6x | 2.6x | 2.3x | 2.9x | 2.1x |
| Neuland Laboratories ($NEULANDLAB) | 4.2x | 3.5x | 2.6x | 2.6x | 2.0x |
| |
|---|
| Median (48 companies) | 1.6x | 1.4x | 0.5x | 0.2x | 0.7x |
|---|
| Abbott India ($ABBOTINDIA) | -1.6x | -1.7x | -1.7x | -0.2x | -2.3x |
