Rupa & Company EBITDA decreased on 4.4% and EBITDA Margin decreased slightly on 1.2 pp from 14.5% to 13.3%
31-05-2016 • About Rupa & Company (
$RUPA) • By InTwits
Rupa & Company reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rupa & Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: ₹280m in FY2016, ₹217m in FY2015, ₹156m in FY2014, ₹323m in FY2013, ₹138m in FY2012
- The company has highly profitable business model: ROIC is 22.0%
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 increased on 4.3%. During FY2012-FY2016 Revenue growth topped in FY2013 at 16.6% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 2.7% to 0.83% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2014 at 15.3% and was declining since that time.
Net Income margin decreased slightly on 0.51 pp from 7.0% to 6.5% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 7.8% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.8% in FY2016. Rupa & Company's CAPEX/Revenue decreased slightly on 1.1 pp from 3.9% in FY2013 to 2.8% in FY2016. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at high and attractive ROIC (22.0%) while ROE is a bit lower (19.0%). ROIC decreased slightly on 1.8 pp from 23.8% to 22.0% in FY2016. ROE decreased on 3.2 pp from 22.2% to 19.0% in FY2016. During FY2012-FY2016 ROIC topped in FY2013 at 27.1% and was declining since that time. During FY2012-FY2016 ROE topped in FY2013 at 29.4% and was declining since that time.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.4x to 1.0x in FY2016. Debt dropped on 31.1% while cash jumped on 34.8%. Net Debt/EBITDA declined at -0.2x per annum in the last 5 years.
Rupa & Company has short term refinancing risk: cash is only 6.6% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 18.0x and P/E 34.8x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 22.7x with the industry average at 22.8x.
Financial and operational results
Rupa & Company ($RUPA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,110 | 8,290 | 9,044 | 9,726 | 10,148 | 4.3% |
| EBITDA | 904 | 1,245 | 1,382 | 1,414 | 1,352 | -4.4% |
| Net Income | 436 | 648 | 661 | 682 | 659 | -3.3% |
Balance Sheet
|
|---|
| Cash | 40 | 53 | 40 | 68 | 91 | 34.8% |
| Short Term Debt | 1,603 | 2,025 | 1,878 | 2,001 | 1,388 | -30.6% |
| Long Term Debt | 160 | 152 | 104 | 75 | 43 | -43.0% |
Cash flow
|
|---|
| Capex | 138 | 323 | 156 | 217 | 280 | 29.0% |
Ratios
|
|---|
| Revenue growth | 9.4% | 16.6% | 9.1% | 7.5% | 4.3% | |
| EBITDA growth | 29.9% | 37.7% | 11.0% | 2.3% | -4.4% | |
|
|---|
| EBITDA Margin | 12.7% | 15.0% | 15.3% | 14.5% | 13.3% | -1.2% |
| Net Income Margin | 6.1% | 7.8% | 7.3% | 7.0% | 6.5% | -0.5% |
| CAPEX, % of revenue | 1.9% | 3.9% | 1.7% | 2.2% | 2.8% | 0.5% |
|
|---|
| ROIC | 22.4% | 27.1% | 25.8% | 23.8% | 22.0% | -1.8% |
| ROE | 23.9% | 29.4% | 24.9% | 22.2% | 19.0% | -3.2% |
| Net Debt/EBITDA | 1.9x | 1.7x | 1.4x | 1.4x | 1.0x | -0.4x |
Peers in Other Apparels & Accessories
Below you can find Rupa & Company 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 |
|---|
| Goldiam International ($GOLDIAM) | - | 8.3% | 18.1% | -62.1% | 177.5% |
| Pearl Global Industries ($PGIL) | - | 36.5% | 23.0% | -78.2% | 36.1% |
| Timex Group India ($TIMEX) | - | -33.8% | 1.8% | 15.2% | 21.3% |
| Page Industries ($PAGEIND) | - | 26.3% | 37.5% | 30.0% | 15.5% |
| Pc Jeweller ($PCJEWELLER) | - | 32.1% | 32.5% | 19.5% | 15.2% |
| |
|---|
| Median (22 companies) | 28.3% | 20.9% | 15.7% | 2.4% | 4.4% |
|---|
| Rupa & Company ($RUPA) | - | 16.6% | 9.1% | 7.5% | 4.3% |
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% | - |
| Ashapura Intimates Fashion ($AIFL) | 9.5% | 10.5% | 10.7% | 13.7% | 14.0% |
| |
|---|
| Median (33 companies) | 7.5% | 5.5% | 5.4% | 4.8% | 5.0% |
|---|
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | 13.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | 7.0% |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | 1.7% |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | 1.5% |
| Timex Group India ($TIMEX) | 1.5% | 2.1% | 1.1% | 0.6% | 1.3% |
| Gokaldas Exports ($GOKEX) | 1.3% | 1.1% | 0.3% | 0.6% | 0.6% |
| |
|---|
| Median (11 companies) | 1.5% | 1.2% | 1.0% | 0.6% | 0.6% |
|---|
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | 2.8% |
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% | 30.2% |
| Pc Jeweller ($PCJEWELLER) | - | 34.1% | 28.0% | 25.5% | 23.4% |
| Thangamayil Jewellery ($THANGAMAYL) | 34.8% | 19.0% | 3.3% | -1.6% | 13.1% |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% |
| |
|---|
| Median (36 companies) | 9.3% | 7.2% | 10.9% | 7.3% | 9.2% |
|---|
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | 22.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Zodiac Clothing Co ($ZODIACLOTH) | 1.2x | 1.4x | 0.6x | 1.8x | 12.6x |
| Kanani Industries ($KANANIIND) | 11.3x | 7.9x | 6.0x | 8.5x | 6.9x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| Bhartiya International ($BIL) | 2.3x | 3.2x | 3.5x | 3.1x | 3.4x |
| |
|---|
| Median (23 companies) | 2.3x | 2.9x | 0.3x | 0.4x | 0.9x |
|---|
| Rupa & Company ($RUPA) | 1.9x | 1.7x | 1.4x | 1.4x | 1.0x |
