Jagran Prakashan CAPEX jumped on 603% and Revenue surged on 19.0%
30-05-2016 • About Jagran Prakashan (
$JAGRAN) • By InTwits
Jagran Prakashan reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jagran Prakashan is a growth stock: FY2016 revenue growth was 19.0%, 5 year revenue CAGR was 11.5% at FY2016 ROIC 24.3%
- EBITDA Margin is expanding: 28.3% in FY2016 vs. 25.8% in FY2015 vs. 23.4% in FY2012
- Jagran Prakashan has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's a lot of higher than industry average of 34.8%.
- CAPEX is quite volatile: ₹3,846m in FY2016, ₹547m in FY2015, ₹902m in FY2014, ₹1,007m in FY2013, ₹1,522m in FY2012
- The company has highly profitable business model: ROIC is 24.3%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 19.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.4 pp from 17.1% to 22.5% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 19.5% and was growing since that time.
Net Income margin increased on 3.7 pp from 17.4% to 21.1% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 18.3% in FY2016. CAPEX/Revenue jumped on 11.6 pp from 6.6% in FY2013 to 18.3% in FY2016. Average CAPEX/Revenue for the last three years was 8.9%. Jagran Prakashan invested a big chunk of EBITDA (64.4%) to CAPEX to secure its growth. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 3.1%.
Return on investment
The company operates at high and attractive ROIC (24.3%) and ROE (32.8%). ROIC increased on 3.5 pp from 20.8% to 24.3% in FY2016. ROE increased on 3.4 pp from 29.4% to 32.8% in FY2016. During the last 5 years ROIC bottomed in FY2013 at 11.3% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 0.9x. Net Debt / EBITDA surged on 0.7x from 0.1x to 0.8x in FY2016. Debt decreased on 6.6% while cash dropped on 90.8%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2015 at 0.1x.
Jagran Prakashan has short term refinancing risk: cash is only 17.5% of short term debt.
Management team
Rajendra Kumar Agarwal is a Jagran Prakashan's CFO. Rajendra Kumar Agarwal has spent 17 years at the company.
Financial and operational results
Jagran Prakashan ($JAGRAN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,557 | 15,218 | 17,027 | 17,698 | 21,065 | 19.0% |
| EBITDA | 3,170 | 2,973 | 3,958 | 4,568 | 5,970 | 30.7% |
| Net Income | 1,783 | 2,551 | 2,262 | 3,080 | 4,447 | 44.4% |
Balance Sheet
|
|---|
| Cash | 451 | 517 | 243 | 4,927 | 451 | -90.8% |
| Short Term Debt | 1,915 | 1,738 | 1,969 | 3,527 | 2,575 | -27.0% |
| Long Term Debt | 4,761 | 3,102 | 2,927 | 1,952 | 2,545 | 30.4% |
Cash flow
|
|---|
| Capex | 1,522 | 1,007 | 902 | 547 | 3,846 | 603.2% |
Ratios
|
|---|
| Revenue growth | 11.0% | 12.3% | 11.9% | 3.9% | 19.0% | |
| EBITDA growth | -12.9% | -6.2% | 33.2% | 15.4% | 30.7% | |
|
|---|
| EBITDA Margin | 23.4% | 19.5% | 23.2% | 25.8% | 28.3% | 2.5% |
| Net Income Margin | 13.2% | 16.8% | 13.3% | 17.4% | 21.1% | 3.7% |
| CAPEX, % of revenue | 11.2% | 6.6% | 5.3% | 3.1% | 18.3% | 15.2% |
|
|---|
| ROIC | 19.7% | 11.3% | 19.7% | 20.8% | 24.3% | 3.5% |
| ROE | 24.5% | 30.3% | 23.9% | 29.4% | 32.8% | 3.4% |
| Net Debt/EBITDA | 2.0x | 1.5x | 1.2x | 0.1x | 0.8x | 0.7x |
Peers in Publishing
Below you can find Jagran Prakashan benchmarking vs. other companies in Publishing 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | - | 39.8% | 27.2% | 27.9% | 17.1% |
| Hindustan Media Ventures ($HMVL) | - | 6.6% | 14.7% | 12.2% | 12.2% |
| Ht Media ($HTMEDIA) | - | 2.3% | 7.4% | 4.0% | 9.2% |
| D B Corp ($DBCORP) | - | 13.7% | 19.3% | 8.1% | 0.6% |
| |
|---|
| Median (4 companies) | - | 10.2% | 17.0% | 10.1% | 10.7% |
|---|
| Jagran Prakashan ($JAGRAN) | - | 12.3% | 11.9% | 3.9% | 19.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 26.0% | 27.8% | 39.5% | 36.6% | 36.8% |
| Next Mediaworks ($NEXTMEDIA) | - | - | - | 31.4% | - |
| Sambhaav Media ($SAMBHAAV) | - | - | - | 30.7% | - |
| D B Corp ($DBCORP) | 25.9% | 24.8% | 27.1% | 28.1% | 26.1% |
| Hindustan Media Ventures ($HMVL) | 16.3% | 17.7% | 20.8% | 21.0% | 30.3% |
| |
|---|
| Median (7 companies) | 22.0% | 21.6% | 24.0% | 28.1% | 28.2% |
|---|
| Jagran Prakashan ($JAGRAN) | 23.4% | 19.5% | 23.2% | 25.8% | 28.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ht Media ($HTMEDIA) | 3.8% | 6.4% | 6.9% | 4.1% | 23.2% |
| Just Dial ($JUSTDIAL) | 8.9% | 10.0% | 4.5% | 11.5% | 13.7% |
| D B Corp ($DBCORP) | 8.9% | 3.6% | 5.5% | 3.6% | 9.9% |
| Hindustan Media Ventures ($HMVL) | 7.7% | 1.2% | 5.8% | 1.9% | 9.0% |
| |
|---|
| Median (4 companies) | 8.3% | 5.0% | 5.7% | 3.8% | 11.8% |
|---|
| Jagran Prakashan ($JAGRAN) | 11.2% | 6.6% | 5.3% | 3.1% | 18.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 58.7% | 32.4% | 34.2% | 31.7% | 33.3% |
| D B Corp ($DBCORP) | 25.7% | 25.8% | 32.7% | 32.9% | 28.2% |
| Hindustan Media Ventures ($HMVL) | 17.7% | 18.3% | 22.3% | 19.6% | 26.1% |
| Ht Media ($HTMEDIA) | 14.7% | 14.2% | 10.9% | 8.6% | 16.5% |
| Arnav Corporation ($ARNAVCORP) | - | - | - | - | - |
| |
|---|
| Median (8 companies) | 14.7% | 14.2% | 22.3% | 25.7% | 27.1% |
|---|
| Jagran Prakashan ($JAGRAN) | 19.7% | 11.3% | 19.7% | 20.8% | 24.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.6x | 1.1x | 0.6x | 1.5x |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.0x | 0.3x | 0.5x |
| D B Corp ($DBCORP) | 0.2x | 0.1x | 0.0x | -0.1x | 0.1x |
| Arnav Corporation ($ARNAVCORP) | 0.0x | - | 0.0x | - | 0.0x |
| Sambhaav Media ($SAMBHAAV) | 1.9x | 2.0x | - | 0.0x | 0.0x |
| |
|---|
| Median (7 companies) | 0.2x | 0.6x | 0.0x | 0.0x | 0.0x |
|---|
| Jagran Prakashan ($JAGRAN) | 2.0x | 1.5x | 1.2x | 0.1x | 0.8x |
