Renaissance Jewellery Debt decreased on 7.7% while EBITDA increased on 6.5%
26-05-2016 • About Renaissance Jewellery (
$RJL) • By InTwits
Renaissance Jewellery reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 6.0% in FY2016, 5.8% in FY2015, 5.0% in FY2014, 4.5% in FY2013, 10.3% in FY2012
- The company has business model with low profitability: ROIC is 9.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.4x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Renaissance Jewellery's Revenue increased on 4.0%. EBITDA Margin showed almost no change in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 4.5% and was growing since that time.
Net Income margin showed almost no change in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 1.6% and was growing since that time.
Return on investment
The company operates at low ROIC (9.2%) and ROE (11.0%).
Leverage (Debt)
Debt level is 2.4x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.9x to 2.4x in FY2016. Debt decreased on 7.7% while cash surged on 16.3%.
Renaissance Jewellery has short term refinancing risk: cash is only 25.5% of short term debt.
Valuation and dividends
Renaissance Jewellery's trades at EV/EBITDA 5.4x and P/E 5.0x while industy averages are 17.8x and 21.9x.
Financial and operational results
Renaissance Jewellery ($RJL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,516 | 9,519 | 12,222 | 12,682 | 13,193 | 4.0% |
| EBITDA | 979 | 431 | 606 | 738 | 786 | 6.5% |
| Net Income | 335 | 148 | 295 | 402 | 474 | 18.1% |
Balance Sheet
|
|---|
| Cash | 315 | 433 | | 544 | 633 | 16.3% |
| Short Term Debt | 2,733 | 2,419 | | 2,719 | 2,487 | -8.6% |
| Long Term Debt | 0 | 0 | | 0 | 24 | |
Cash flow
|
|---|
| Capex | 208 | | | | | |
Ratios
|
|---|
| Revenue growth | 10.4% | 0.0% | 28.4% | 3.8% | 4.0% | |
| EBITDA growth | 122.8% | -56.0% | 40.7% | 21.7% | 6.5% | |
|
|---|
| EBITDA Margin | 10.3% | 4.5% | 5.0% | 5.8% | 6.0% | 0.1% |
| Net Income Margin | 3.5% | 1.6% | 2.4% | 3.2% | 3.6% | 0.4% |
| CAPEX, % of revenue | 2.2% | | | | | |
|
|---|
| ROIC | 15.7% | 5.7% | | | 9.2% | |
| ROE | 11.6% | 4.6% | | | 11.0% | |
| Net Debt/EBITDA | 2.5x | 4.6x | 0.0x | 2.9x | 2.4x | -0.6x |
Peers in Other Apparels & Accessories
Below you can find Renaissance Jewellery benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Bhartiya International ($BIL) | - | 20.9% | 36.7% | 34.7% | 12.1% |
| Page Industries ($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 ($THANGAMAYL) | - | 34.6% | -21.8% | 19.3% | -10.5% |
| |
|---|
| Median (23 companies) | 3.4% | 19.5% | 14.1% | -0.9% | 3.1% |
|---|
| Renaissance Jewellery ($RJL) | - | 0.0% | 28.4% | 3.8% | 4.0% |
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 ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.5% | 6.1% | 6.1% | 4.8% | 3.5% |
|---|
| Renaissance Jewellery ($RJL) | 10.3% | 4.5% | 5.0% | 5.8% | 6.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | 7.0% |
| Page Industries ($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% | - |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | 0.5% |
| |
|---|
| Median (11 companies) | 1.5% | 1.3% | 1.1% | 0.7% | 0.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($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 ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 10.9% | 7.7% | 8.2% |
|---|
| Renaissance Jewellery ($RJL) | 15.7% | 5.7% | - | - | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thangamayil Jewellery ($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 | 0.3x | 0.2x | 1.2x |
|---|
| Renaissance Jewellery ($RJL) | 2.5x | 4.6x | 0.0x | 2.9x | 2.4x |
