Bhartiya International revenue surged on 12.1% and EBITDA Margin decreased slightly on 0.81 pp from 9.5% to 8.7%
25-05-2016 • About Bhartiya International (
$BIL) • By InTwits
Bhartiya International reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bhartiya International is a fast growth stock: FY2016 revenue growth was 12.1%, 5 year revenue CAGR was 26.2% at FY2016 ROIC 11.4%
- Bhartiya International has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: ₹31m in FY2016, ₹115m in FY2015, ₹74m in FY2014, ₹117m in FY2013, ₹113m in FY2012
- The company has business model with average profitability: ROIC is 11.4%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Bhartiya International's Revenue surged on 12.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from 16.7% to 18.8% in FY2016.
Net Income margin showed almost no change in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2013 at 3.3% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 0.50%. Bhartiya International's CAPEX/Revenue decreased on 3.4 pp from 3.9% in FY2013 to 0.50% in FY2016. For the last three years the average CAPEX/Revenue was 1.4%. CAPEX as a % of Revenue followed a declining trend at -0.98 pp per annum in the last 5 years.
Return on investment
The company operates at good ROE (12.4%) while ROIC is low (11.4%). ROIC decreased slightly on 1.4 pp from 12.8% to 11.4% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 4.0x. Net Debt / EBITDA jumped on 0.3x from 3.1x to 3.4x in FY2016. Debt increased on 9.2% while cash decreased on 6.0%.
Bhartiya International has short term refinancing risk: cash is only 18.3% of short term debt.
Valuation and dividends
Bhartiya International's trades at EV/EBITDA 13.8x and P/E 22.7x while industy averages are 17.8x and 21.9x. Bhartiya International's EV/(EBITDA-CAPEX) is 14.6x with the industry average at 22.8x.
Financial and operational results
Bhartiya International ($BIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,507 | 3,031 | 4,144 | 5,581 | 6,254 | 12.1% |
| EBITDA | 287 | 279 | 370 | 528 | 542 | 2.5% |
| Net Income | 115 | 101 | 145 | 210 | 247 | 17.7% |
Balance Sheet
|
|---|
| Cash | 114 | 154 | 425 | 356 | 334 | -6.0% |
| Short Term Debt | 678 | 766 | 1,393 | 1,675 | 1,829 | 9.2% |
| Long Term Debt | 89 | 272 | 314 | 314 | 342 | 9.1% |
Cash flow
|
|---|
| Capex | 113 | 117 | 74 | 115 | 31 | -72.6% |
Ratios
|
|---|
| Revenue growth | 28.4% | 20.9% | 36.7% | 34.7% | 12.1% | |
| EBITDA growth | 38.6% | -2.8% | 32.6% | 42.9% | 2.5% | |
|
|---|
| EBITDA Margin | 11.4% | 9.2% | 8.9% | 9.5% | 8.7% | -0.8% |
| Net Income Margin | 4.6% | 3.3% | 3.5% | 3.8% | 4.0% | 0.2% |
| CAPEX, % of revenue | 4.5% | 3.9% | 1.8% | 2.1% | 0.5% | -1.6% |
|
|---|
| ROIC | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% | -1.4% |
| ROE | 9.2% | 7.4% | 9.7% | 12.6% | 12.4% | -0.2% |
| Net Debt/EBITDA | 2.3x | 3.2x | 3.5x | 3.1x | 3.4x | 0.3x |
Peers in Other Apparels & Accessories
Below we provide Bhartiya International benchmarking against other companies in Other Apparels & Accessories 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 |
|---|
| Page Industries ($PAGEIND) | - | 26.3% | 37.5% | 30.0% | 15.5% |
| Mini Diamonds (India) ($MINID) | - | 59.6% | 117.1% | 26.9% | 3.1% |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | - |
| Thangamayil Jewellery ($THANGAMAYL) | - | 34.6% | -21.8% | 19.3% | -10.5% |
| Shrenuj & Co ($SHRENUJ) | 28.3% | 22.6% | 20.2% | 18.1% | - |
| |
|---|
| Median (23 companies) | 5.0% | 19.1% | 14.1% | -0.9% | 3.1% |
|---|
| Bhartiya International ($BIL) | - | 20.9% | 36.7% | 34.7% | 12.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ceenik Exports (India) ($CEENIK) | - | - | - | 27.2% | - |
| Arrow Textiles ($ARROWTEX) | - | - | - | 25.2% | - |
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.5% | 5.5% | 5.4% | 4.8% | 3.8% |
|---|
| Bhartiya International ($BIL) | 11.4% | 9.2% | 8.9% | 9.5% | 8.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | - |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | 1.5% |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | 1.7% |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | - |
| Asian Star Co ($ASTAR) | 0.5% | 1.0% | 0.9% | 0.7% | 0.3% |
| |
|---|
| Median (10 companies) | 1.5% | 1.3% | 1.1% | 0.7% | 0.6% |
|---|
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
| Ashapura Intimates Fashion ($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% |
| Asian Star Co ($ASTAR) | 6.6% | 6.9% | 8.5% | 8.2% | 6.6% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 10.9% | 7.3% | 8.2% |
|---|
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | 2.9x |
| Shrenuj & Co ($SHRENUJ) | 9.3x | 11.2x | 11.7x | 13.5x | - |
| Gokaldas Exports ($GOKEX) | - | - | 3.6x | 10.4x | - |
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| |
|---|
| Median (24 companies) | 2.2x | 2.7x | 0.0x | 0.2x | 1.2x |
|---|
| Bhartiya International ($BIL) | 2.3x | 3.2x | 3.5x | 3.1x | 3.4x |
