Poddar Pigments reports 12.4% Net Income growth in 2016 and almost no change in EBITDA Margin of 7.2%

28-05-2016 • About Poddar Pigments ($PODARPIGQ) • By InTwits

Poddar Pigments reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is relatively stable: 7.2% in FY2016 vs. 7.0% in FY2015 vs. 8.9% in FY2012.

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

Revenue and profitability

Poddar Pigments's Revenue increased on 2.4%. Revenue decline was accelerating on average at -5.6 pp per annum in FY2012-FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 9.1% to 6.6% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2015 at 7.0%.

Net Income margin increased slightly on 0.50 pp from 5.1% to 5.6% in FY2016.

Management team

Poddar Pigments's CEO is Ramesh Kumar Sureka. Ramesh Kumar Sureka has 21 years tenure with the company.

Financial and operational results

Poddar Pigments ($PODARPIGQ) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,219	2,755	3,132	3,183	3,259	2.4%
EBITDA	198	200	221	224	236	5.3%
Net Income	98	128	135	163	183	12.4%
Balance Sheet
Cash	23	8
Short Term Debt	171	109
Long Term Debt	46	0
Cash flow
Capex	36
Ratios
Revenue growth	19.0%	24.1%	13.7%	1.6%	2.4%
EBITDA growth	26.7%	1.3%	10.6%	1.3%	5.3%

EBITDA Margin	8.9%	7.3%	7.1%	7.0%	7.2%	0.2%
Net Income Margin	4.4%	4.6%	4.3%	5.1%	5.6%	0.5%
CAPEX, % of revenue	1.6%

ROIC	19.0%	20.2%
ROE	17.2%	19.4%
Net Debt/EBITDA	1.0x	0.5x	0.0x	0.0x	0.0x

Peers in Specialty Chemicals

Below you can find Poddar Pigments benchmarking vs. other companies in Specialty Chemicals 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
Vikas Globalone ($VIKASGLOB)	-	53.0%	-0.9%	-10.0%	36.6%
Cochin Minerals & Rutile ($COCHINM)	-	-15.9%	-33.8%	-11.0%	35.6%
Ultramarine & Pigments ($ULTRAMAR)	-	3.0%	7.2%	14.2%	27.7%
Anil ($ANILLTD)	-	9.5%	16.8%	17.5%	26.6%
Sudarshan Chemical Industries ($SUDARSCHEM)	-	9.1%	28.2%	8.3%	15.3%
Median (23 companies)	17.4%	11.4%	11.3%	11.7%	-0.5%
Poddar Pigments ($PODARPIGQ)	-	24.1%	13.7%	1.6%	2.4%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Vinati Organics ($VINATIORGA)	21.7%	21.8%	22.7%	24.9%	32.8%
Indian Toners & Developers ($INDTONER)	-	-	-	22.6%	-
Solar Industries India ($SOLARINDS)	18.5%	17.5%	17.9%	19.3%	19.3%
Anil ($ANILLTD)	18.1%	16.9%	17.1%	17.4%	16.2%
Ultramarine & Pigments ($ULTRAMAR)	18.0%	15.5%	17.4%	17.2%	17.2%
Median (34 companies)	10.6%	11.2%	10.6%	10.8%	15.3%
Poddar Pigments ($PODARPIGQ)	8.9%	7.3%	7.1%	7.0%	7.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Plastiblends India ($PLASTIBLEN)	2.1%	1.9%	0.9%	4.0%	15.6%
Camlin Fine Sciences ($CAMLINFIN)	4.3%	5.7%	7.1%	5.1%	13.7%
Vinati Organics ($VINATIORGA)	13.6%	28.2%	4.2%	7.4%	12.1%
Dai-Ichi Karkaria ($DAICHI)	3.2%	-	-	1.6%	10.3%
Solar Industries India ($SOLARINDS)	13.0%	9.9%	12.3%	10.3%	9.6%
Median (17 companies)	5.2%	4.6%	4.4%	5.1%	7.7%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Vinati Organics ($VINATIORGA)	29.6%	26.2%	30.6%	34.8%	32.2%
Camlin Fine Sciences ($CAMLINFIN)	11.1%	17.8%	24.2%	29.5%	23.3%
Pidilite Industries ($PIDILITIND)	27.4%	29.3%	29.8%	29.0%	38.3%
Adi Finechem ($ADIFINCHM)	30.6%	29.8%	46.4%	26.3%	20.6%
Ultramarine & Pigments ($ULTRAMAR)	20.0%	16.3%	20.8%	25.7%	30.2%
Median (37 companies)	14.7%	14.5%	11.2%	17.1%	20.6%
Poddar Pigments ($PODARPIGQ)	19.0%	20.2%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Anil ($ANILLTD)	2.2x	3.4x	3.8x	4.0x	4.2x
Jayant Agro-Organics ($JAYAGROGN)	2.8x	3.1x	4.6x	6.5x	3.4x
Sudarshan Chemical Industries ($SUDARSCHEM)	2.4x	5.1x	3.2x	3.2x	2.4x
Meghmani Organics ($MEGH)	4.2x	3.7x	4.3x	3.1x	1.9x
Vikas Globalone ($VIKASGLOB)	2.5x	4.4x	4.9x	0.0x	1.8x
Median (26 companies)	1.5x	1.8x	1.7x	0.0x	0.0x
Poddar Pigments ($PODARPIGQ)	1.0x	0.5x	0.0x	0.0x	0.0x

Poddar Pigments stock price chart

Poddar Pigments financials

mln.	FY2010	FY2011	FY2012

Revenue	3,789	1,865	2,219
EBITDA	123.6	155.9	197.6
Net income	141.9	95.542	98.440
CAPEX	27.795	133.6	36.010
Debt	79.333	239.9	216.4
Cash	10.702	12.494	23.154

About Poddar Pigments

Poddar Pigments Limited manufactures and sells color and additive masterbatches for dope dyeing of man-made fibers and various plastic applications; and engineering plastic compounds in India and internationally. The company offers single pigment concentrate masterbatches for automotive, textiles, non woven, and spun bonded fibres; tailor made masterbatches for fabrics, textiles, outdoor applications, and fluorescent effect; black masterbatches for fabrics, home furnishing, and apparels; white masterbatches for yarns, apparel, and fabrics; and additive masterbatches for yarns. It also provides polypropylene masterbatches for applications in carpets, home furnishings, upholstery, hosiery-wear, PP strapping, and non-woven and spun bonded fabrics; and polyamides masterbatches for apparels, carpets, home furnishings, upholstery, hosiery, automobiles, nonwovens, etc. In addition, the company offers white, black, and custom color masterbatches for film and packaging; masterbatches for broad pipe extrusion applications; cable masterbatches for jelly filled telecom and optical fiber cables; color masterbatches for PET bottle and pre-form coverings; and white, color, and antiblock masterbatches for BOPET film applications; and color and additives masterbatches for injection, blow, and roto moulding applications, as well as bio-degradable, halogenated flame retardant, and antimicrobial masterbatches. Further, it offers engineering plastic compounds that consist of unfilled colors, unfilled FR, glass filled FR, UV stabilized, mineral filled, and unfilled colors used in various applications, such as day to day consumer products, electrical switches and other electrical components, home appliances, automotives, telecommunication, railways, national defense, etc. The company offers engineering plastic compounds under the MASTERPLUS brand name. Poddar Pigments Limited was incorporated in 1991 and is headquartered in Mumbai, India.