Krbl CAPEX dropped on 25.7% while Revenue increased on 6.8%
26-05-2016 • About Krbl (
$KRBL) • By InTwits
Krbl reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Krbl is a growth stock: FY2016 revenue growth was 6.8%, 5 year revenue CAGR was 16.9% at FY2016 ROIC 17.6%
- EBITDA Margin is relatively stable: 15.8% in FY2016 vs. 15.4% in FY2015 vs. 14.1% in FY2012
- Krbl has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 2.9%.
- CAPEX is quite volatile: ₹1,723m in FY2016, ₹2,321m in FY2015, ₹1,772m in FY2014, ₹829m in FY2013, ₹666m in FY2012
- The company has highly profitable business model: ROIC is 17.6%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Krbl's Revenue increased on 6.8%. During FY2012-FY2016 Revenue growth topped in FY2014 at 39.9% and was decelerating since that time. EBITDA Margin showed almost no change in FY2016. EBITDA Margin followed a growing trend at 0.46 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 1.5 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Krbl's CAPEX/Revenue was 5.1% in FY2016. Krbl's CAPEX/Revenue increased slightly on 1.1 pp from 4.0% in FY2013 to 5.1% in FY2016. Average CAPEX/Revenue for the last three years was 6.2%.
Return on investment
The company operates at high and attractive ROE (22.9%) while ROIC is a bit lower (17.6%). ROIC increased slightly on 0.60 pp from 17.0% to 17.6% in FY2016. ROE decreased on 4.3 pp from 27.2% to 22.9% in FY2016. During the last 5 years ROE topped in FY2014 at 27.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.6x from 2.7x to 2.1x in FY2016. Debt dropped on 14.1% while cash jumped on 15.2%. Net Debt/EBITDA followed a declining trend at -0.4x per annum in FY2012-FY2016.
Krbl has short term refinancing risk: cash is only 2.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 14.1x and P/E 18.9x while industy averages are 17.8x and 21.9x. Krbl's EV/(EBITDA-CAPEX) is 20.8x with the industry average at 22.8x.
Financial and operational results
Krbl ($KRBL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,310 | 20,804 | 29,105 | 31,597 | 33,738 | 6.8% |
| SG&A | | | | | 783 | |
| EBITDA | 2,303 | 2,960 | 4,393 | 4,881 | 5,330 | 9.2% |
| Net Income | 730 | 1,299 | 2,551 | 3,217 | 3,371 | 4.8% |
Balance Sheet
|
|---|
| Cash | 31 | 107 | 658 | 240 | 276 | 15.2% |
| Short Term Debt | 8,316 | 7,929 | 11,712 | 11,147 | 9,598 | -13.9% |
| Long Term Debt | 1,064 | 774 | 2,083 | 2,363 | 2,006 | -15.1% |
Cash flow
|
|---|
| Capex | 666 | 829 | 1,772 | 2,321 | 1,723 | -25.7% |
Ratios
|
|---|
| Revenue growth | 5.6% | 27.6% | 39.9% | 8.6% | 6.8% | |
| EBITDA growth | 1.5% | 28.5% | 48.4% | 11.1% | 9.2% | |
|
|---|
| EBITDA Margin | 14.1% | 14.2% | 15.1% | 15.4% | 15.8% | 0.4% |
| SG&A, % of revenue | | | | | 2.3% | |
| Net Income Margin | 4.5% | 6.2% | 8.8% | 10.2% | 10.0% | -0.2% |
| CAPEX, % of revenue | 4.1% | 4.0% | 6.1% | 7.3% | 5.1% | -2.2% |
|
|---|
| ROIC | 11.7% | 14.5% | 18.3% | 17.0% | 17.6% | 0.6% |
| ROE | 10.7% | 16.8% | 27.2% | 27.2% | 22.9% | -4.3% |
| Net Debt/EBITDA | 4.1x | 2.9x | 3.0x | 2.7x | 2.1x | -0.6x |
Peers in Packaged Foods
Below you can find Krbl benchmarking vs. other companies in Packaged Foods 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 |
|---|
| Simran Farms ($SIMRAN) | 38.4% | 23.8% | 27.5% | 23.4% | - |
| Heritage Foods ($HERITGFOOD) | - | 15.0% | 7.5% | 20.4% | 14.8% |
| Rcl Foods ($RCLFOODS) | -56.8% | -34.2% | 18.2% | 17.8% | - |
| Kwality ($KWALITY) | - | 62.6% | 27.5% | 17.3% | 9.1% |
| Umang Dairies ($UMANGDAIR) | - | 15.7% | 24.5% | 16.1% | -24.8% |
| |
|---|
| Median (18 companies) | 18.0% | 15.0% | 15.7% | 7.0% | 3.3% |
|---|
| Krbl ($KRBL) | - | 27.6% | 39.9% | 8.6% | 6.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zydus Wellness ($ZYDUSWELL) | 23.1% | 25.4% | 22.6% | 23.8% | 21.3% |
| Nestle India ($NESTLEIND) | 22.0% | 21.7% | 20.9% | 19.7% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.6% | 17.8% | 22.5% | 17.2% | 19.4% |
| Sampre Nutritions ($SAMPRE) | - | - | - | 16.8% | - |
| Adf Foods ($ADFFOODS) | 13.5% | 11.2% | 8.6% | 14.5% | - |
| |
|---|
| Median (20 companies) | 7.2% | 7.1% | 8.6% | 6.6% | 10.2% |
|---|
| Krbl ($KRBL) | 14.1% | 14.2% | 15.1% | 15.4% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Venky'S (India) ($VENKYS) | 8.9% | 6.6% | 10.4% | 7.7% | - |
| Umang Dairies ($UMANGDAIR) | 2.0% | 4.4% | 2.7% | 3.2% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 2.7% | - | 4.3% | 2.5% | 1.4% |
| Heritage Foods ($HERITGFOOD) | 2.1% | 1.9% | 3.7% | 2.5% | 2.9% |
| Vadilal Industries ($VADILALIND) | 12.2% | 9.4% | 5.9% | 2.2% | - |
| |
|---|
| Median (10 companies) | 3.3% | 3.7% | 3.2% | 2.0% | 2.9% |
|---|
| Krbl ($KRBL) | 4.1% | 4.0% | 6.1% | 7.3% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kse ($KSE) | 27.7% | 14.1% | 36.9% | 69.0% | - |
| Britannia Industries ($BRITANNIA) | 24.6% | 33.7% | 54.0% | 59.4% | 66.7% |
| Nestle India ($NESTLEIND) | 57.7% | 47.9% | 49.6% | 40.2% | - |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 44.6% | - | - | 36.2% | 35.7% |
| Umang Dairies ($UMANGDAIR) | 93.5% | 55.6% | 22.3% | 28.4% | - |
| |
|---|
| Median (22 companies) | 12.3% | 14.1% | 22.3% | 24.5% | 26.3% |
|---|
| Krbl ($KRBL) | 11.7% | 14.5% | 18.3% | 17.0% | 17.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kwality ($KWALITY) | 3.9x | 3.9x | 3.6x | 8.1x | 3.6x |
| Vadilal Industries ($VADILALIND) | 2.6x | 4.5x | 3.9x | 4.0x | - |
| Venky'S (India) ($VENKYS) | 2.6x | 2.8x | 6.7x | 3.9x | - |
| Bambino Agro Industries ($BAMBINO) | 3.2x | - | 3.2x | 2.9x | - |
| Heritage Foods ($HERITGFOOD) | 2.2x | 0.9x | 1.0x | 1.4x | 0.5x |
| |
|---|
| Median (18 companies) | 1.7x | 0.8x | 1.0x | 0.0x | 0.0x |
|---|
| Krbl ($KRBL) | 4.1x | 2.9x | 3.0x | 2.7x | 2.1x |
