Panasonic Appliances India Company EBITDA dropped on 25.9% and EBITDA Margin decreased slightly on 1.0 pp from 3.5% to 2.5%
29-11-2016 • About Panasonic Appliances India Company (
$PANASONIC) • By InTwits
Panasonic Appliances India Company reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.5% in FY2016, 3.5% in FY2015, 2.0% in FY2014, -3.5% in FY2013, -3.5% in FY2012
- Panasonic Appliances India Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹52m in FY2016, ₹58m in FY2015, ₹31m in FY2014, ₹5m in FY2013, ₹97m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.1%
- It operates with high leverage: Net Debt/EBITDA is 8.0x while industry average is 3.8x
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%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 3.5% to 2.5% in FY2016. EBITDA Margin grew at 1.9 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 2.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.6% in FY2016. CAPEX/Revenue increased on 2.3 pp from 0.33% in FY2013 to 2.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.5%. The company maintained rich investment policy and has spent a lot to CAPEX (104% of EBITDA).
Return on investment
The company operates at low ROIC (2.1%) and ROE (1.9%). ROIC decreased on 4.5 pp from 6.6% to 2.1% in FY2016. ROE decreased on 3.5 pp from 5.4% to 1.9% in FY2016. ROIC followed a growing trend at 7.5 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 8.0x Net Debt / EBITDA and 8.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.1x from 5.8x to 8.0x in FY2016. Debt increased slightly on 1.0% while cash dropped on 22.0%.
Panasonic Appliances India Company has short term refinancing risk: cash is only 0.5% of short term debt.
Valuation and dividends
Panasonic Appliances India Company's trades at EV/EBITDA 75.2x and P/E 2,261.8x while industy averages are 17.8x and 21.9x.
Financial and operational results
Panasonic Appliances India Company ($PANASONIC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,796 | 1,476 | 1,573 | 1,924 | 2,007 | 4.3% |
| EBITDA | -63 | -52 | 31 | 68 | 50 | -25.9% |
| Net Income | -128 | -114 | -34 | 4 | 1 | -64.1% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 2 | 1 | -22.0% |
| Short Term Debt | 275 | 250 | 352 | 326 | 321 | -1.6% |
| Long Term Debt | 108 | 54 | 6 | 70 | 79 | 13.1% |
Cash flow
|
|---|
| Capex | 97 | 5 | 31 | 58 | 52 | -10.0% |
Ratios
|
|---|
| Revenue growth | -3.6% | -17.8% | 6.6% | 22.3% | 4.3% | |
| EBITDA growth | -188.4% | -17.5% | -160.5% | 115.1% | -25.9% | |
|
|---|
| EBITDA Margin | -3.5% | -3.5% | 2.0% | 3.5% | 2.5% | -1.0% |
| Net Income Margin | -7.1% | -7.7% | -2.2% | 0.2% | 0.1% | -0.1% |
| CAPEX, % of revenue | 5.4% | 0.3% | 2.0% | 3.0% | 2.6% | -0.4% |
|
|---|
| ROIC | -22.0% | -20.1% | -0.6% | 6.6% | 2.1% | -4.5% |
| ROE | -96.9% | -158.9% | -44.9% | 5.4% | 1.9% | -3.5% |
| Net Debt/EBITDA | | | 11.3x | 5.8x | 8.0x | 2.1x |
Peers in Household Appliances
Below we provide Panasonic Appliances India Company benchmarking against other companies in Household Appliances industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Industries ($IFBIND) | - | 14.1% | 11.5% | 23.6% | 19.0% |
| Khaitan Electricals ($KHAITANELE) | - | 16.9% | 1.1% | -16.9% | -34.2% |
| Value Industries ($VALUEIND) | -11.7% | 20.3% | 6.1% | -74.1% | - |
| |
|---|
| Median (3 companies) | -11.7% | 16.9% | 6.1% | -16.9% | -7.6% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | - | -17.8% | 6.6% | 22.3% | 4.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Industries ($IFBIND) | 6.2% | 5.6% | 5.9% | 7.1% | 4.6% |
| Khaitan Electricals ($KHAITANELE) | 2.6% | 6.1% | 2.8% | - | -21.1% |
| |
|---|
| Median (2 companies) | 6.2% | 6.1% | 5.9% | 7.1% | -8.2% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -3.5% | -3.5% | 2.0% | 3.5% | 2.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Industries ($IFBIND) | 7.3% | 5.7% | 5.7% | 6.9% | 4.6% |
| |
|---|
| Median (1 company) | 3.9% | 5.7% | 5.7% | 6.9% | 4.6% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 5.4% | 0.3% | 2.0% | 3.0% | 2.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Industries ($IFBIND) | 14.4% | 11.0% | 9.9% | 11.4% | 5.4% |
| Khaitan Electricals ($KHAITANELE) | 2.6% | 8.1% | - | - | - |
| Value Industries ($VALUEIND) | - | - | - | - | - |
| |
|---|
| Median (3 companies) | 8.5% | 9.6% | 9.9% | 11.4% | 5.4% |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -22.0% | -20.1% | -0.6% | 6.6% | 2.1% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Industries ($IFBIND) | -1.1x | -0.7x | -0.3x | -0.1x | -0.5x |
| |
|---|
| Median (1 company) | 0.0x | 0.0x | 0.0x | -0.1x | -0.5x |
|---|
| Panasonic Appliances India Company ($PANASONIC) | - | - | 11.3x | 5.8x | 8.0x |
