Ind-Swift Laboratories EBITDA jumped on 10.2% and EBITDA Margin increased slightly on 1.9 pp from 16.9% to 18.8%

25-05-2016 • About Ind-Swift Laboratories ($INDSWFTLAB) • By InTwits

Ind-Swift Laboratories reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:

EBITDA Margin is expanding: 18.8% in FY2016 vs. 16.9% in FY2015 vs. 12.9% in FY2012
EBITDA Margin is quite volatile: 18.8% in FY2016, 16.9% in FY2015, 7.0% in FY2014, 6.6% in FY2013, 12.9% in FY2012

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 decreased slightly on 1.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.9 pp from 16.9% to 18.8% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at 6.6% and was growing since that time.

Net Income margin increased on 9.1 pp from -18.1% to -8.9% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -18.1%.

Financial and operational results

Ind-Swift Laboratories ($INDSWFTLAB) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	14,092	11,361	9,651	6,605	6,532	-1.1%
EBITDA	1,821	750	678	1,113	1,227	10.2%
Net Income	892	-1,180	-1,220	-1,194	-583
Balance Sheet
Cash	112	70	91
Short Term Debt	3,018	3,937	3,910
Long Term Debt	7,110	8,182	9,411
Cash flow
Capex	1,792	543	310
Ratios
Revenue growth	35.9%	-19.4%	-15.1%	-31.6%	-1.1%
EBITDA growth	5.0%	-58.8%	-9.6%	64.1%	10.2%

EBITDA Margin	12.9%	6.6%	7.0%	16.9%	18.8%	1.9%
Net Income Margin	6.3%	-10.4%	-12.6%	-18.1%	-8.9%	9.1%
CAPEX, % of revenue	12.7%	4.8%	3.2%

ROIC	8.5%	1.0%	0.1%
ROE	12.7%	-14.1%	-15.5%
Net Debt/EBITDA	5.5x	16.1x	19.5x	0.0x	0.0x

Peers in Pharmaceuticals

Below we provide Ind-Swift Laboratories 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 ($TORRCABS)	27.5%	17.4%	-42.9%	26.5%	-
Median (41 companies)	19.8%	14.9%	13.7%	9.2%	14.2%
Ind-Swift Laboratories ($INDSWFTLAB)	-	-19.4%	-15.1%	-31.6%	-1.1%

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 ($DRREDDY)	25.8%	22.9%	25.1%	23.2%	25.8%
Median (53 companies)	12.7%	13.4%	15.0%	12.0%	18.7%
Ind-Swift Laboratories ($INDSWFTLAB)	12.9%	6.6%	7.0%	16.9%	18.8%

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 (32 companies)	7.7%	8.3%	5.8%	6.1%	8.1%

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 ($JENBURPH)	34.1%	29.0%	32.4%	35.3%	-
Abbott India ($ABBOTINDIA)	29.6%	26.9%	30.5%	34.2%	34.1%
Divi'S Laboratories ($DIVISLAB)	30.6%	30.4%	32.3%	30.5%	-
Median (63 companies)	14.0%	13.8%	15.6%	13.2%	13.4%
Ind-Swift Laboratories ($INDSWFTLAB)	8.5%	1.0%	0.1%	-	-

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 ($NEULANDLAB)	4.2x	3.5x	2.6x	2.6x	2.0x
Median (48 companies)	1.4x	1.2x	0.3x	0.2x	0.7x
Ind-Swift Laboratories ($INDSWFTLAB)	5.5x	16.1x	19.5x	0.0x	0.0x

Ind-Swift Laboratories stock price chart

Ind-Swift Laboratories financials

mln.	FY2010	FY2011	FY2012

Revenue	7,897	10,370	14,092
EBITDA	1,437	1,735	1,821
Net income	563.9	894.6	891.6
CAPEX	1,014	1,824	1,792
Debt	5,883	8,192	10,129
Cash	322.0	214.2	111.8

About Ind-Swift Laboratories

Ind-Swift Laboratories Limited manufactures and sells active pharmaceutical ingredients (APIs) in India and internationally. The company operates through Bulk Drugs & Pharmaceuticals segment. It primarily offers APIs in various therapeutic areas, including macrolide antibiotic, cardiovascular, antihistaminic, antidiabetic, antipsychotic, bone resorption inhibitor, antimigraine, Parkinson disease, hyperparathyroidism, analgesic, aromatase inhibitor, nootropic, antihypertensive, antibacterial Quinolone, antidiarrhoeal, alcohol abstinence, antineoplastic, prostatic hyperplasia, and treatment of premature ejaculation; and others in glucocorticoids therapeutic area. The company also provides various products that are under development stage in prostatic hypertrophy, overactive bladder syndrome, and osteoporosis therapeutic areas. In addition, it offers menthol and mint derivatives under the Ind COOL brand. Further, the company provides contract research and manufacturing services, including early phase drug development, process research and development, custom chemical synthesis, contract and API manufacturing, and FTE, as well as analytical and regulatory submission support services. Ind-Swift Laboratories Limited was founded in 1995 and is based in Manimajra, India.