N.R.Agarwal Industries reports 105% EBITDA growth in 2016 and 3.3 pp EBITDA Margin growth from 4.9% to 8.2%

26-05-2016 • About N.R.Agarwal Industries ($NRAGRINDQ) • By InTwits

N.R.Agarwal Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: N.R.Agarwal Industries is a growth stock: FY2016 revenue growth was 21.8%, 5 year revenue CAGR was 13.6% at FY2016 ROIC .

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

N.R.Agarwal Industries's Revenue jumped on 21.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.7 pp from -17.6% to 1.2% in FY2016.

Net Income margin increased on 6.6 pp from -4.6% to 2.0% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -4.6%.

Management team

Gopal Uchil is a N.R.Agarwal Industries's CFO. Gopal Uchil has spent 9 years at the company.

Financial and operational results

N.R.Agarwal Industries ($NRAGRINDQ) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	4,926	5,123	5,405	7,250	8,833	21.8%
EBITDA	369	242		354	724	104.6%
Net Income	141	46	5	-334	178
Balance Sheet
Cash	78	72
Short Term Debt	518	497
Long Term Debt	1,470	1,681
Cash flow
Capex	773
Ratios
Revenue growth	5.5%	4.0%	5.5%	34.1%	21.8%
EBITDA growth	-29.3%	-34.4%			104.6%

EBITDA Margin	7.5%	4.7%		4.9%	8.2%	3.3%
Net Income Margin	2.9%	0.9%	0.1%	-4.6%	2.0%	6.6%
CAPEX, % of revenue	15.7%

ROIC	9.3%	4.4%
ROE	14.1%	4.3%
Net Debt/EBITDA	5.2x	8.7x		0.0x	0.0x

Peers in Paper & Paper Products

Below we provide N.R.Agarwal Industries benchmarking against other companies in Paper & Paper Products 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
South India Paper Mills ($STHINPA)	-	-1.1%	-14.7%	29.2%	11.5%
Pudumjee Pulp & Paper Mills ($PDUMJEPULP)	2.1%	8.4%	4.9%	26.5%	-
Tcpl Packaging ($TCPLPACK)	17.8%	33.7%	5.8%	26.1%	-
Jk Paper ($JKPAPER)	-	9.4%	18.5%	24.3%	13.5%
Yash Papers ($YASHPPR)	-	-3.6%	39.5%	17.3%	0.6%
Median (14 companies)	10.0%	6.6%	8.4%	-0.3%	6.0%
N.R.Agarwal Industries ($NRAGRINDQ)	-	4.0%	5.5%	34.1%	21.8%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Tamil Nadu Newsprint & Papers ($TNPL)	21.0%	22.2%	22.5%	24.0%	-
Tcpl Packaging ($TCPLPACK)	16.1%	14.9%	15.7%	16.5%	-
South India Paper Mills ($STHINPA)	13.5%	16.1%	10.2%	15.8%	17.3%
Yash Papers ($YASHPPR)	15.7%	16.8%	16.0%	15.7%	-
Kuantum Papers ($KUANTUM)	11.2%	14.2%	15.9%	12.7%	29.6%
Median (15 companies)	12.2%	14.4%	14.5%	10.1%	14.7%
N.R.Agarwal Industries ($NRAGRINDQ)	7.5%	4.7%	-	4.9%	8.2%

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Emami Paper Mills ($EMAMIPAP)	24.4%	7.3%	19.2%	89.3%	21.7%
Tamil Nadu Newsprint & Papers ($TNPL)	18.9%	10.4%	5.5%	35.2%	-
Tcpl Packaging ($TCPLPACK)	18.3%	8.6%	11.1%	12.1%	-
Jk Paper ($JKPAPER)	47.6%	59.5%	15.9%	4.2%	1.6%
Median (4 companies)	11.3%	9.5%	13.5%	23.6%	11.7%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Tcpl Packaging ($TCPLPACK)	15.4%	17.4%	16.9%	23.1%	-
Tamil Nadu Newsprint & Papers ($TNPL)	5.3%	8.2%	11.1%	12.7%	-
Jk Paper ($JKPAPER)	5.2%	2.7%	1.1%	4.3%	10.5%
Emami Paper Mills ($EMAMIPAP)	5.8%	5.9%	5.4%	3.0%	2.0%
Rama Pulp & Papers ($RAMAPULP)	-	10.8%	-	-	-
Median (21 companies)	7.9%	9.4%	11.1%	8.5%	6.2%
N.R.Agarwal Industries ($NRAGRINDQ)	9.3%	4.4%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Emami Paper Mills ($EMAMIPAP)	7.4x	5.3x	5.0x	11.2x	16.7x
Jk Paper ($JKPAPER)	6.8x	12.7x	14.1x	8.6x	4.0x
Tamil Nadu Newsprint & Papers ($TNPL)	5.4x	3.6x	2.8x	4.0x	-
Tcpl Packaging ($TCPLPACK)	2.6x	2.3x	2.2x	1.9x	-
Yash Papers ($YASHPPR)	5.2x	5.5x	4.5x	0.0x	-
Median (13 companies)	3.2x	2.7x	0.0x	0.0x	0.3x
N.R.Agarwal Industries ($NRAGRINDQ)	5.2x	8.7x	-	0.0x	0.0x

N.R.Agarwal Industries stock price chart

N.R.Agarwal Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	8,401	4,669	4,926
EBITDA	349.3	522.0	369.1
Net income	215.9	279.0	141.0
CAPEX	575.1	1,226	773.3
Debt	928.1	1,700	1,989
Cash	27.676	115.6	77.581

About N.R.Agarwal Industries

N R Agarwal Industries Limited manufactures and sells coated duplex boards and newsprint products in India. The company offers grey back/white back double coated duplex boards for use in carton boards and consumer packaging boards; white back double coated duplex boards for use in consumer packaging, pharmaceutical cartons, advertising pamplets/danglers, and cartons with backside printings; and newsprint products for use in newspapers and supplements, as well as lotteries. Its coated duplex boards are also used as packaging material for consumer and industrial products, cosmetics, jewelry, readymade garments, food and beverages, books and stationery, fruits, and promotional/merchandising items. The company markets its products through its sales team and distributors. N R Agarwal Industries Limited exports its coated duplex boards to various countries, including Sri Lanka, Bangladesh, the Philippines, Egypt, East Africa, and Gulf countries. The company was founded in 1975 and is based in Mumbai, India.