Prism Cement EBITDA increased on 9.3% and EBITDA Margin increased slightly on 0.62 pp from 6.3% to 6.9%
25-05-2016 • About Prism Cement (
$PRISMCEM) • By InTwits
Prism Cement reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prism Cement has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: ₹3,202m in FY2016, ₹1,813m in FY2015, ₹2,841m in FY2014, ₹1,695m in FY2013, ₹1,434m in FY2012
- The company has potentially unprofitable business model: ROIC is 6.2%
- It operates with high leverage: Net Debt/EBITDA is 5.3x while industry average is 24.7x
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 0.58%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.62 pp from 6.3% to 6.9% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 4.1% and was growing since that time.
SG&A as a % of Revenue decreased slightly on 0.54 pp from 5.8% to 5.3% in FY2016.
Net Income margin showed almost no change in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at -1.7% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.7% in FY2016. CAPEX/Revenue decreased on 3.5 pp from 7.2% in FY2013 to 3.7% in FY2016. Average CAPEX/Revenue for the last three years was 3.7%. Battling declining revenue Prism Cement invested a large share of EBITDA (53.6%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (6.2%) and ROE (0.3%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at -0.31% and was growing since that time. During FY2012-FY2016 ROE bottomed in FY2014 at -7.8% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.3x and Debt / EBITDA is 5.6x. Net Debt / EBITDA dropped on 0.7x from 6.0x to 5.3x in FY2016. Debt decreased on 2.5% while cash surged on 28.7%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 10.0x and was declining since that time.
Prism Cement has short term refinancing risk: cash is only 18.4% of short term debt.
Management team
Pramod Akhramka is a the company's CFO. Pramod Akhramka has spent 6 years at the company.
Financial and operational results
Prism Cement ($PRISMCEM) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 45,498 | 47,723 | 50,266 | 56,544 | 56,216 | -0.6% |
| SG&A | | | | 3,296 | 2,971 | -9.9% |
| EBITDA | 3,198 | 3,283 | 2,056 | 3,554 | 3,884 | 9.3% |
| Net Income | -184 | -625 | -862 | 26 | 33 | 26.0% |
Balance Sheet
|
|---|
| Cash | 748 | 533 | 524 | 1,002 | 1,290 | 28.7% |
| Short Term Debt | 5,323 | 7,731 | 6,566 | 5,980 | 6,997 | 17.0% |
| Long Term Debt | 10,631 | 12,480 | 14,478 | 16,385 | 14,807 | -9.6% |
Cash flow
|
|---|
| Capex | 2,990 | 3,427 | 2,112 | 1,799 | 2,081 | 15.7% |
Ratios
|
|---|
| Revenue growth | 33.2% | 4.9% | 5.3% | 12.5% | -0.6% | |
| EBITDA growth | -17.7% | 2.7% | -37.4% | 72.9% | 9.3% | |
|
|---|
| EBITDA Margin | 7.0% | 6.9% | 4.1% | 6.3% | 6.9% | 0.6% |
| SG&A, % of revenue | | | | 5.8% | 5.3% | -0.5% |
| Net Income Margin | -0.4% | -1.3% | -1.7% | 0.0% | 0.1% | 0.0% |
| CAPEX, % of revenue | 6.6% | 7.2% | 4.2% | 3.2% | 3.7% | 0.5% |
|
|---|
| ROIC | 5.4% | 4.2% | -0.3% | 5.7% | 6.2% | 0.5% |
| ROE | -1.5% | -5.3% | -7.8% | 0.3% | 0.3% | 0.1% |
| Net Debt/EBITDA | 4.8x | 6.0x | 10.0x | 6.0x | 5.3x | -0.7x |
Peers in Cement & Cement Products
Below you can find Prism Cement benchmarking vs. other companies in Cement & Cement 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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ncl Industries ($NCLIND) | 38.2% | -15.8% | -3.0% | 30.8% | - |
| Indian Hume Pipe Co ($INDIANHUME) | - | 34.5% | 18.3% | 22.7% | -7.2% |
| J.K.Cement ($JKCEMENT) | 21.8% | 14.7% | -4.0% | 21.2% | - |
| Visaka Industries ($VIKASAS) | - | 22.0% | -2.6% | 13.6% | -0.8% |
| K.C.P ($KCP) | 54.3% | 11.7% | -8.2% | 12.4% | - |
| |
|---|
| Median (16 companies) | 18.4% | 11.7% | -1.6% | 6.2% | -0.2% |
|---|
| Prism Cement ($PRISMCEM) | - | 4.9% | 5.3% | 12.5% | -0.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orient Cement ($ORIENTCEM) | - | 21.5% | 15.0% | 19.8% | 12.2% |
| Saurashtra Cement ($SAURASHCEM) | 11.4% | 21.6% | 11.9% | 16.8% | 13.8% |
| Ambuja Cements ($AMBUJACEM) | 25.6% | 18.2% | 19.4% | 16.4% | - |
| India Cements ($INDIACEM) | 20.6% | 18.4% | 12.4% | 15.1% | - |
| Deccan Cements ($DECCANCE) | 22.8% | 13.2% | 14.7% | 14.9% | 19.9% |
| |
|---|
| Median (15 companies) | 19.2% | 14.1% | 11.9% | 13.0% | 12.7% |
|---|
| Prism Cement ($PRISMCEM) | 7.0% | 6.9% | 4.1% | 6.3% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 91.1% | - |
| Orient Cement ($ORIENTCEM) | - | 2.9% | - | 59.7% | 24.5% |
| J.K.Cement ($JKCEMENT) | 6.5% | 18.8% | 55.8% | 16.2% | - |
| Acc ($ACC) | 5.0% | 8.6% | 13.7% | 9.5% | - |
| Birla Corporation ($BIRLACORPN) | 19.1% | 7.1% | 5.5% | 6.9% | 5.1% |
| |
|---|
| Median (12 companies) | 5.5% | 7.1% | 8.3% | 5.9% | 4.8% |
|---|
| Prism Cement ($PRISMCEM) | 6.6% | 7.2% | 4.2% | 3.2% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 38.6% | 42.7% | 13.9% | 26.9% | 23.6% |
| Indian Hume Pipe Co ($INDIANHUME) | 7.6% | 13.8% | 15.0% | 18.0% | 14.5% |
| Orient Cement ($ORIENTCEM) | - | 57.3% | 15.2% | 15.4% | 4.6% |
| Acc ($ACC) | 20.2% | 12.7% | 11.0% | 9.9% | - |
| K.C.P ($KCP) | 17.6% | 6.7% | 7.1% | 9.3% | - |
| |
|---|
| Median (17 companies) | 15.8% | 11.2% | 6.7% | 8.7% | 8.4% |
|---|
| Prism Cement ($PRISMCEM) | 5.4% | 4.2% | -0.3% | 5.7% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 17.1x | 358.6x |
| Heidelbergcement India ($HEIDELBERG) | 14.0x | 12.2x | 0.0x | 10.4x | 3.0x |
| J.K.Cement ($JKCEMENT) | 2.3x | 2.3x | 6.9x | 5.8x | - |
| India Cements ($INDIACEM) | 3.2x | 3.5x | 5.5x | 4.6x | - |
| Orient Cement ($ORIENTCEM) | - | -0.1x | 1.1x | 3.5x | 6.8x |
| |
|---|
| Median (14 companies) | 1.8x | 2.4x | 2.6x | 2.6x | 3.0x |
|---|
| Prism Cement ($PRISMCEM) | 4.8x | 6.0x | 10.0x | 6.0x | 5.3x |
