Paramount Communications revenue dropped on 30.9%

27-05-2016 • About Paramount Communications ($PARACABLES) • By InTwits

Paramount Communications reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:

Paramount Communications is a company in decline: FY2016 revenue growth was -30.9%, 5 years revenue CAGR was -14.8%
EBITDA Margin is relatively stable: in FY2016 vs. -8.5% in FY2015 vs. -2.6% in FY2012
Paramount Communications spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -3.2%

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

Revenue and profitability

Paramount Communications's Revenue dropped on 30.9%.

Net Income margin dropped on 17.7 pp from -22.8% to -40.4% in FY2016. Net Income margin stuck to a declining trend at -8.5 pp per annum in the last 5 years.

Financial and operational results

Paramount Communications ($PARACABLES) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	6,920	6,705	4,135	4,435	3,063	-30.9%
EBITDA	-180		-256	-376
Net Income	-505	-245	-1,008	-1,010	-1,239
Balance Sheet
Cash	22
Short Term Debt	2,960
Long Term Debt	1,792
Cash flow
Capex	18
Ratios
Revenue growth	1.6%	-3.1%	-38.3%	7.3%	-30.9%
EBITDA growth	-82.0%			47.0%

EBITDA Margin	-2.6%		-6.2%	-8.5%
Net Income Margin	-7.3%	-3.7%	-24.4%	-22.8%	-40.4%	-17.7%
CAPEX, % of revenue	0.3%

ROIC	-6.7%

Peers in Other Elect.Equip./ Prod.

Below you can find Paramount Communications benchmarking vs. other companies in Other Elect.Equip./ Prod. 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
Indosolar ($INDOSOLAR)	-85.0%	-34.7%	-71.0%	1,797.0%	-
B.C. Power Controls ($BCP)	129.0%	-2.2%	2.2%	115.3%	-
Ece Industries ($ECEIND)	-	-30.9%	-14.8%	58.1%	-12.8%
Pitti Laminations ($PITTILAM)	-	-23.9%	-19.4%	35.9%	-8.3%
Genus Power Infrastructures ($GENUSPOWER)	-	-7.5%	17.4%	19.5%	-6.3%
Median (14 companies)	29.9%	-1.9%	-3.6%	7.0%	-5.3%
Paramount Communications ($PARACABLES)	-	-3.1%	-38.3%	7.3%	-30.9%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Malvica Engineering ($MALVICAE)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (1 company)	0.0%	0.0%	0.0%	0.0%	0.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Fluidomat ($FLUIDOM)	-	-	-	28.0%	-
Indosolar ($INDOSOLAR)	-114.4%	-52.7%	-140.0%	16.3%	-
Genus Power Infrastructures ($GENUSPOWER)	14.1%	11.0%	13.8%	13.8%	14.8%
Salzer Electronics ($SALZER)	12.9%	12.5%	12.4%	12.6%	12.1%
Pitti Laminations ($PITTILAM)	15.6%	13.6%	13.2%	12.0%	6.2%
Median (16 companies)	9.9%	8.9%	9.3%	10.3%	10.7%
Paramount Communications ($PARACABLES)	-2.6%	-	-6.2%	-8.5%	-

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Indosolar ($INDOSOLAR)	311.2%	148.3%	42.3%	26.9%	-
Diamond Power Infrastructure ($DIAPOWER)	-	6.8%	8.4%	8.7%	-
Salzer Electronics ($SALZER)	6.8%	5.6%	4.1%	8.2%	9.8%
Birla Ericsson Optical ($BIRLAERIC)	1.3%	4.4%	4.0%	3.5%	-
Kirloskar Electric Company ($KECL)	1.8%	0.7%	1.8%	2.3%	0.3%
Median (7 companies)	3.4%	4.2%	4.0%	3.5%	3.7%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Birla Ericsson Optical ($BIRLAERIC)	-2.2%	8.2%	27.3%	16.6%	-
Salzer Electronics ($SALZER)	14.6%	12.7%	13.0%	14.6%	13.8%
Genus Power Infrastructures ($GENUSPOWER)	12.4%	8.0%	12.2%	13.5%	12.7%
Hbl Power Systems ($HBLPOWER)	10.6%	10.1%	4.3%	6.7%	-
Indosolar ($INDOSOLAR)	-14.0%	-6.8%	-5.2%	2.2%	-
Median (23 companies)	9.0%	8.2%	9.7%	4.5%	6.4%
Paramount Communications ($PARACABLES)	-6.7%	-	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Diamond Power Infrastructure ($DIAPOWER)	3.3x	5.2x	4.8x	46.8x	-
Indosolar ($INDOSOLAR)	-	-	-	20.3x	-
Hbl Power Systems ($HBLPOWER)	4.1x	4.4x	6.8x	4.7x	-
Salzer Electronics ($SALZER)	1.9x	2.2x	2.6x	2.7x	2.2x
Genus Power Infrastructures ($GENUSPOWER)	3.2x	3.9x	2.9x	2.7x	1.5x
Median (14 companies)	3.4x	4.2x	2.8x	0.0x	0.0x

Paramount Communications stock price chart

Paramount Communications financials

mln.	FY2010	FY2011	FY2012

Revenue	5,370	6,809	6,920
EBITDA	454.8	-1,002.414	-180.261
Net income	-56.467	-1,199.220	-504.580
CAPEX	0.000	0.000	17.528
Debt	4,092	4,708	4,752
Cash	11.940	27.701	21.776

About Paramount Communications

Paramount Communications Limited manufactures and sells cables in India. It provides power cables, including HT and LT power and aerial bunch cables; screened and unscreened type control cables; instrumentation cables for process control, A/D converters, and other microprocessor based instrumentation circuits; and thermocouple extension and compensating cables for connecting thermocouples to control and measurement devices. The company also offers telecommunication cables comprising optical fibre cables for telecommunications; direct to home optical fibre cables for cable TV; polythene insulated jelly filled cables and aerial self-supporting cables for subscriber distribution networks; installation cables for digital exchanges; co-axial cables for signal distribution; and MATV, data transmission, computer, PCM, and other cables, as well as buried service wires. In addition, it provides underground railway signaling and quad axle counter cables; specialized instrumentation cables for underground and elevated metro projects; hook-up/jumper/drop and building wires; and cables for submersible pumps. Further, the company manufactures and imports mining and airfield lighting cables; and offers construction special, and fire protection and mineral insulated cables. It serves various industries, such as power, railways, telecom and IT, petrochemicals, construction, defence and space research projects, etc. The company also exports its products. Paramount Communications Limited was founded in 1955 and is based in New Delhi, India.