R ESULT
V ISIT NOT
UPDAT
E E
Mid Cap
Share Data
Price: Rs 725
Reuters code
CLAC.BO
Not Rated
18 August 2016
CLRC IN
Clariant Chemicals (India) Limiteds (CLRC) performance in the last couple of years has not
251
been encouraging as series of divestments of profitable business impacted the core financial
0.1
performance. However, the green shoots are now visible as the performance in the last
23
Bloomberg code
Performance (%) 1M
3M 12M
Absolute
(2)
(9)
Relative
3 (10)
(10)
couple of quarters (March 2016 quarter and 1Q17) has improved with operating margins
gradually witnessing an uptick (reported double digit EBITDA margins after 10 quarters).
Further, the company remains optimistic on its near-term performance
and expects short to medium-term boom for the Indian dye and pigment
industry as Indian companies start filling in the shortages caused by the
Valuation Ratios
Chinese plant shutdowns. It also believes that the benefit would largely
EPS (Rs)
28.9
(1.3)
14.7
+/- (%)
(18.1)
PER (x)
21.4
PBV (x)
2.9
49.2
1.7
2.6
4.5 23.9
from 01 January 2015 to 31 March 2016. We do not have a rating on the company. However,
EV/Sales (x)
1.3
with the core performance starting to show improvement coupled with favourable industry
1.1
1.4
Promoters 64
FIIs 1
indicated that as per the report of Ministry of Commerce, FICCI and CII, the Indian
MFs 2
Chemical Industry is third largest producer in Asia. It is sixth largest producer globally.
BFSIs 4
Public & Others
29
Relative performance
The estimated market size for chemicals is US$ 140 bn and expected to
reach US$ 214 bn by 2020. India accounts for 16% of the global dye and pigment
manufacturing. The industry has been growing at a CAGR of 12.6%. The Speciality
Chemicals is estimated to have a market size of around US$ 24 bn.
Speciality Chemicals companies to do well in India: Speciality Chemicals are
1,400
1,200
1,000
800
600
400
200
0
typically low volume, high value chemicals with specific applications. With increasing
demand for value-added high performance products, the company expects growth in
demand for speciality chemicals that add functionality to the products. Further, the
shift of manufacturing to the East and Indias export competitiveness is
Apr-10
Oct-10
May-11
Dec-11
Jul-12
Feb-13
Sep-13
Apr-14
Nov-14
Jun-15
Jan-16
Aug-16
B&K R esearch
August 2016
Exports too witnessing healthy growth: The company expects healthy growth
in exports as India is becoming an important manufacturing hub for such chemicals.
Slowdown of China (in certain segments) is a contributing factor to the
growth of exports. The recently launched Make in India campaign is also expected to
add impetus to the emergence of India as a manufacturing hub for the chemicals industry
in the medium-term.
Dynamics titling towards India: The company opined that a re-organisation
is taking place in the dye and pigment industry globally. This is due to the supply
chain disruptions caused to European companies by the effect of REACH
regulation and increased environmental standards in China. Many European
companies depend on supplies from India and China; some are now setting up their own
plants in those countries or establishing JVs with large local players.
Operating margin expansion on cards: The company believes that the softening
of international crude and commodity prices has eased the cost pressure on the industry
to some extent. While operating margins have improved a bit, they have potential
to expand further in the forthcoming quarters should things continue to
remain same.
Acquires Carbon Black business: The company has acquired Carbon Black
business from Lanxess India Pvt. Ltd., effective closing of business hours
on 31 March 2015. The acquisition comprises the Carbon Black Dispersion plant
located at Nagda, India, together with its respective assets, liabilities and employees as a
going concern on a slump sale basis for a lumpsum consideration of Rs 134.6 mn
(including non-compete fees) after working capital adjustment, as at 31 March 2015.
This product line of Lanxess manufactures black pigment preparations used for processing
of viscose fibre, which goes in the manufacture of mainly viscose-based apparels, knitwear,
towels, bed-linen, etc. With this acquisition, CLRC in India gains additional pigment
preparation capacity to cater to a larger, wider customer base. The management believes
that the acquisition of Carbon Black business was strategic for CLRC for survival of its
current business in similar products.
Sells Industrial & Consumer Specialities (ICS): The company sold its Industrial
& Consumer Specialities (ICS) business along with employees, assets, liabilities and
including all licences, permits, consents and approvals thereto on a going concern by way
of a slump sale on a as is where is basis to Clariant India Limited (erstwhile known
as Clariant India Private Limited), for a total consideration of Rs 420 mn, effective from
01 August 2015. The profit on sale of the ICS business amounting to Rs 265.6 mn is shown
under Exceptional Items. The ICS business contributed sales of Rs 386 mn till
31 July 2015. Post the divestment of this business, the company has entered into job work
agreement with Clariant India Ltd. for processing and supply of ICS products.
Buyback of equity shares: The company made an offer of buyback of ~3.6
mn equity shares of face value Rs 10 each to its shareholders (representing
13.42% of the total equity) at the price of Rs 950 per equity share aggregating
to Rs 3.4 bn. The buyback was through Tender Offer by Stock Exchange mechanism.
The buyback offer was open for a period from 22 September 2015 to 07 October 2015. The
response to the buyback offer was 143.45% and the company bought back the entire equity
B&K R esearch
August 2016
shares offered to the shareholders. After the buyback, the paid up equity capital
of the company is Rs 230.82 mn. The promoters stake increased from ~63%
to 64.24%.
Doles out dividend: The company in order to reward shareholder and distribute benefits
from land sale (received Rs 11.02 bn from Kolshet land sale) doled out an interim dividend
of Rs 140 per share in January 2015 resulting into cash outflow of Rs 4.5 bn. It further
approved final dividend of Rs 10 per share entailing cash outflow of Rs 277.8 mn. The
total dividend for the 15 months thus stood at Rs 150 per share as compared
to Rs 39 per share (CY14).
Continues to be a zero debt company: The company remains a zero debt
company with no long-term borrowings. The credit rating for the company is
reaffirmed CARE AAA for long-term bank facilities and CARE A1+ for short-term
bank facilities.
Increases limit for related party transactions: SEBI LODR Regulations provides
that material related party transaction, i.e. a transaction to be entered into which
individually or together with previous transactions in a given financial year with a related
party exceeds 10% of the annual consolidated turnover as per the last audited financial
statements of the company, requires the approval of the shareholders of the company by
way of an ordinary resolution. The company in order to streamline currency risk involved
in exports, to secure payment on time and also to utilise its capacity by committed demand
has entered into a supply agreement whereby all its exports are routed through a single
customer Clariant (Singapore) Pte. Ltd. The exports to this entity for CY14 and FY16
stood at Rs 2.35 bn and Rs 2.4 bn, respectively, thus exceeding 10% of the consolidated
annual turnover. The company has therefore accordingly sought shareholders
approval to increase the transaction limit with Clariant (Singapore) Pte.
Ltd., from time to time, in the ordinary course of business and at arms
length price, during the financial year 2016-17 and subsequent financial
years for an amount not exceeding Rs 5.0 bn per annum. The members, at the
58th Annual General Meeting held on 24 April 2015, had already given their approval for
the transactions to be entered with Clariant (Singapore) Pte. Ltd. during the financial year
2015 in the ordinary course of business.
1Q17 performance encouraging: The company posted an encouraging performance
in 1Q17 by reporting sales, EBITDA and PAT growth of 10.5%, 160.4% and 213.8% YoY
to Rs 2.70 bn, Rs 282 mn and Rs 140.6 mn, respectively. The performance was driven
by strong performance by Pigments and Colours segment which reported
20.8% YoY growth in sales to Rs 2.52 bn and 266.3% growth in EBIT to Rs
205 mn (margins @ 8.1% witnessed 540 bps YoY expansion). While Dyes and
Speciality Chemicals segments performance was impacted by divestment of ICS. The
segment reported 49.2% decline in revenues to Rs 182 mn, while EBIT declined by 84.2%
YoY to Rs 3.4 mn (margins @ 1.9%, down 410 bps YoY).
B&K R esearch
August 2016
Agrocer range of pigments provide enhanced appearance to seeds and allow differentiation.
Additives offer strength and durability to PVC irrigation pipes, thus reducing wastage of water.
Infrastructure
Low VOC pigment preparations used in decorative paints help reduce health hazards.
IR-reflective pigment preparations used in water-based exterior paints, ambient temperatures in the interiors are
reduced, thus aiding energy-efficiency. These solutions also contribute to long-lasting exterior finishes.
Easily-Dispersible pigments, specially designed for offering eye-catching attractiveness, also find applications in
paints used for road markings.
Masterbatches find use in solar panels, ensuring their longevity.
Whitening dyes find applications in detergents, thereby offering whiter, brighter, long lasting clothes, with less
usage of water.
Licowax used in applications like shoeshines, offer greater water repellency, thereby increasing shelf life of leather
articles.
Packaging
Pigments used for packaging of sensitive applications like food or cosmetics, are free from lead, chromium,
halogens and toxic solvents.
Pigments reduce warpage or distortion of flexible packaging, thereby cutting down on wastage and rejections.
Speciality masterbatches, processors can increase the use of renewable, degradable and compostable bio-polymers.
Additive masterbatches when used in packaging films enhance the shelf life of packaged products.
Consumer Goods
Transportation
Phthalate-free pigments find use in synthetic leather applications for automotive interiors.
Non-halogenated flame retardants, find application in personal and public transportation vehicles.
Hydrocerol technology for masterbatches helps reduce total weight of plastics in automobiles, thereby contributing
to fuel efficient vehicles.
Masterbatches find use in interiors of automobiles and prevent the plastics from degrading due to temperature
fluctuations, UV or hydrocarbon exposure. Antistatic solutions minimise dust accumulation in the interior
surfaces, thereby maintaining aesthetics and prolonging the life of automobiles.
Healthcare
Mevopur range of functional additives help enhance and protect medical devices and pharmaceutical packaging.
REMAFIN-EP range of white masterbatches are targeted for use in safe and compliant packaging for parenteral,
ocular and nasal drugs.
B&K R esearch
August 2016
CY14
FY16*
Growth (%)
4,649
5,993
28.9
Additives
108
170
57.4
2,421
3,897
61.0
Plastichemix
1,110
NA
NA
Core Masterbatch
1,311
NA
NA
847
1,181
955
(19.1 )
30
70
133.3
873
386
(55.8)
10,109
11,471
13.5
CY14
FY16*
Masterbatch (Total)
Total
*FY16 figures are for 15 months.
Like-to-like performance
CY13
Sales growth, like-to-like basis (%)
25.3
43.6
40.2
24.2
56.7
47.3
28.2
15.7
24.2
PBDIT (% to sales)
11.4
3.8
10.9
Pigments and Colours: The segment comprises of Pigments, Additives and Masterbatches.
Pigments are used for colouring paint, ink, plastic, fabric, cosmetics, food and other
materials. CLRC is a leading global provider of organic pigments, pigment preparations
and dyes used in coatings, paints, printing, plastics and other specialty applications.
The company has a very good presence in paints, coating, ink and plastic applications
and continues to be a preferred supplier to major players in the domestic market. The
company acquired the Carbon Black business from Lanxess India comprising of the
Black dispersion plant located at Nagda for Viscofil Black VBL, effective from 01 April
2015. Further, the company introduced new whitening solutions for detergent market
for regional customers in India to support business growth. The company launched new
products Special Pigments for packaging ink segment and L-VOC range of coatings.
Additives are performance chemicals for improving the quality and physical property
to ensure performance, durability and safety of the products. CLRCs additives business
provides solutions in improving the efficiency, safety, protection, durability and appearance
of products such as plastics, coatings and printing inks. CLRC is a leading provider of
non-Halogenated (environmentally safe) flame retardants, waxes and polymer additives
and serves customers across a wide range of applications and sectors including electronic,
construction and automotive, textiles, printing and packaging. The additives business of
the company is evolving by outsourcing the high technology products from CLRC affiliates
to meet the demand of local markets. Additives business has contributed sales of Rs 170 mn
during the period. The company foresees wide scope for this business to grow in future in
the niche applications.
Masterbatch is a concentrated mixture of pigments and/or additives dispersed in
a polymer medium. Masterbatch is produced by encapsulating minimum two or more
Clariant Chemicals (India)
B&K R esearch
August 2016
ingredients in a polymer medium with equipment called as extruder. The strands coming
out of an extruder are then cooled and cut into a granular shape. The company, with its four
manufacturing facilities in India, has established itself as a reliable partner and solution
provider for Masterbatch and fibre segment. The acquisition of Masterbatches business
from Plastichemix Industries has helped it to improve foothold in Masterbatches business
by increasing customer base and product portfolio like black, white, additive, product and
colour master batches and engineering plastics compounds. The business has initiated a
new product line PET BLACK, to cater to customers in the Fibre industry and has also
created multiple technological options for Automotive, Consumer Durable & Packaging
segments, with a focus on green chemistry. The company is further exploring additional
products and services required by the Indian market through close collaboration with its
customers. The Masterbatches business has contributed 39% of sales to the pigments and
colours segment and recorded sales of Rs 3.89 bn.
The growth driver for Pigments and Colours segment continues to be healthy performance
of user industries such as Paints and Plastics.
B&K R esearch
August 2016
Revenue mix
(Rs mn)
CY10
CY11
CY12
CY13
CY14
FY16*
3,585
3,789
4,194
5,301
7,178
10,050
36.8
39.6
39.2
43.7
71.2
88.2
6,162
5,772
6,518
6,831
2,904
1,348
63.2
60.4
60.8
56.3
28.8
11.8
9,747
9,561
10,712
12,132
10,082
11,398
2,372
2,458
2,742
3,441
4,955
7,297
66.2
64.9
65.4
64.9
69.0
72.6
1,213
1,331
1,452
1,860
2,223
2,753
33.8
35.1
34.6
35.1
31.0
27.4
3,585
3,789
4,194
5,301
7,178
10,050
5,306
4,841
5,258
5,347
2,501
1,336
86.1
83.9
80.7
78.3
86.1
99.1
% Contribution
Dyes and Speciality Chemicals
% Contribution
Total
Pigments and Colours
Domestic
% Contribution
Exports
% Contribution
Total
Dyes and Speciality Chemicals
Domestic
% Contribution
Exports
856
931
1,260
1,484
403
12
% Contribution
13.9
16.1
19.3
21.7
13.9
0.9
6,162
5,772
6,518
6,831
2,904
1,348
7,678
7,299
8,000
8,788
7,456
8,633
Total
Total Domestic
% Contribution
Total Exports
% Contribution
Total Revenues
78.8
76.3
74.7
72.4
74.0
75.7
2,069
2,262
2,712
3,344
2,626
2,765
21.2
23.7
25.3
27.6
26.0
24.3
9,747
9,561
10,712
12,132
10,082
11,398
CY14
FY16*
Segment performance
(Rs mn)
CY11
CY12
CY13
3,789
4,194
5,301
7,178
10,050
Segment assets
2,485
2,805
3,655
6,673
7,273
Segment liabilities
777
954
1,171
1,837
1,827
Capex
315
168
434
2,161
659
Depreciation
98
119
141
309
550
EBITDA
728
628
648
417
885
EBITDA (%)
19.2
15.0
12.2
5.8
8.8
EBIT
630
509
508
107
335
EBIT (%)
16.6
12.1
9.6
1.5
3.3
RoCE (%)
36.9
27.5
20.4
2.2
6.1
Net revenues
5,772
6,518
6,831
2,904
1,348
Segment assets
2,169
2,445
1,794
620
76
Segment liabilities
1,131
1,358
915
112
167
96
294
150
81
95
92
21
Capex
Depreciation
EBITDA
942
882
754
141
45
16.3
13.5
11.0
4.9
3.3
EBIT
861
787
663
120
42
14.9
12.1
9.7
4.1
3.1
RoCE (%)
83.0
72.4
75.4
23.6
59.4
B&K R esearch
August 2016
CY11
CY12
CY13
CY14
FY16*
Pigments
872
1,043
993
1,260
1,327
Growth (%)
19.5
(4.8)
26.9
5.4
245
313
408
238
186
Polymers
266
309
392
697
1,181
16.0
27.1
77.5
69.6
207
274
344
285
259
Monomers
237
246
211
Biocides
174
240
317
209
60
Others
2,463
2,721
2,922
2,982
3,227
Total
4,464
5,144
5,587
5,677
6,240
CY11
CY12
CY13
CY14
FY16*
19.5
20.3
17.8
22.2
21.3
Growth (%)
5.5
6.1
7.3
4.2
3.0
Polymers
6.0
6.0
7.0
12.3
18.9
4.6
5.3
6.2
5.0
4.1
Monomers
5.3
4.8
3.8
0.1
0.0
Biocides
3.9
4.7
5.7
3.7
1.0
Others
55.2
52.9
52.3
52.5
51.7
100.0
100.0
100.0
100.0
100.0
Total
*FY16 figures are for 15 months.
6,000
37.0
5,000
36.5
120
4,000
36.0
3,000
35.5
2,000
35.0
1,000
34.5
20
34.0
Rs mn
0
CY11
CY12
CY13
CY14
FY16
Rs/share
160
140
37.5
7,000
100
80
100
60
80
40
60
40
20
0
CY11
CY12
CY13
CY14
FY16
B&K R esearch
August 2016
Quarterly performance
(Rs mn)
Net sales
2,639
2,481
2,220
2,256
2,448
2,233
2,183
(1.2)
(17.1)
(28.5)
(17.9)
(17.7)
(7.2)
(10.0)
Gross profit
852
785
709
531
720
686
768
31.1
29.8
28.6
23.9
31.9
28.0
Staff cost
232
236
265
246
221
220
Other expenditure
494
486
490
561
468
2,615
2,576
2,527
2,496
5.5
(11.1)
(19.4)
(9.6)
127
63
(47)
4.6
2.4
105
90
EBITDA
232
Expenditure
Growth YoY (%)
Operating profit
EBIT
EBIT margin (%)
1QFY17
2,457
2,706
(1.7)
8.9
10.5
620
875
893
34.4
28.4
35.6
33.0
227
206
198
220
435
492
468
529
488
2,224
2,416
2,184
2,238
2,309
2,522
(15.0)
(6.2)
(13.6)
(10.4)
3.8
4.4
(276)
31
32
49
(55)
148
184
(1.9)
(12.4)
1.4
1.3
2.2
(2.5)
6.0
6.8
80
103
84
77
67
122
76
98
153
33
(173)
116
108
115
67
224
282
8.1
5.6
1.3
(7.4)
4.9
4.3
5.0
2.9
8.9
10.1
39
49
28
21
118
49
54
134
26
56
78
88
111
111
100
114
110
109
99
215
124
(27)
(263)
124
57
55
92
117
210
7.8
4.7
(1.1)
(11.9)
5.5
2.3
2.5
4.2
4.8
7.8
Interest
Exceptional item
991
11
10,834
240
(4 )
213
1,113
(17)
10,565
121
56
293
87
116
208
(39.8)
214.9
(43.0)
(95.0)
(99.2)
(4.8)
270.8
62
259
(4)
2,125
15
11
79
22
17
68
28.9
23.2
22.4
20.1
12.3
20.3
26.9
25.7
14.8
32.5
PBT
Growth YoY (%)
Tax
Tax rate (%)
Reported PAT
151
855
(13)
8,441
107
45
214
64
99
141
(38.9)
254.3
(29.6)
(94.8)
(99.2)
(7.5)
213.8
5.5
32.4
(0.5)
380.2
4.7
1.8
9.6
3.0
4.0
5.2
Adjusted PAT
151
62
(22)
(226)
107
45
(25)
69
99
141
5.7
32.05
(0.50)
316.61
4.0
1.7
8.0
2.8
4.3
6.1
1QFY17
Base business
Sales
2,202
2,332
2,329
2,160
2,185
2,369
2,230
2,305
2,533
2,804
49.3
40.4
30.8
4.7
(0.8)
1.6
(4.2)
6.7
15.9
18.4
PBT
128
1,072
(33)
10,462
126
54
281
87
116
208
Margin (%)
5.8
46.0
(1.4)
484.4
5.8
2.3
12.6
3.8
4.6
7.4
PAT
95
828
(24)
8,372
110
43
206
64
99
141
(31.3)
543.1
15.2
(94.8)
(99.2)
(10.3)
226.2
Growth (%)
Growth (%)
FY15
FY16
12,099
9,595
9,320
Growth (%)
(20.7)
(2.9)
Gross profit
3,896
2,745
2,948
32.2
28.6
31.6
1,069
130
515
8.8
1.4
5.5
Adjusted PAT
669
(80)
187
EBITDA
FY14
B&K R esearch
August 2016
4QFY16
1QFY17
1,454
1,948
1,975
1,801
1,884
2,090
1,981
1,988
2,272
2,524
26.2
48.5
39.2
27.0
29.6
7.3
0.3
10.4
20.6
20.8
53.0
73.8
79.6
81.1
83.5
85.4
88.7
91.1
92.5
93.3
1,288
691
505
420
371
358
251
195
185
182
(20.6)
(63.1)
(75.3)
(67.4)
(71.2)
(48.2)
(50.3)
(53.6)
(50.1)
(49.2)
47.0
26.2
20.4
18.9
16.5
14.6
11.3
8.9
7.5
6.7
2,742
2,639
2,481
2,220
2,256
2,448
2,233
2,183
2,457
2,706
(1.2)
(17.1)
(28.5)
(17.9)
(17.7)
(7.2)
(10.0)
(1.7)
8.9
10.5
% of revenue
Total Segment Revenue
Growth YoY (%)
EBIT
Pigments & Colours
Growth YoY (%)
PBIT margin (%)
112
79
16
(100)
15
56
69
10
195
205
(17.6)
(48.4)
(91.9)
(86.3)
(29.2)
334.2
1,173.2
266.3
7.7
4.1
0.8
(5.5)
0.8
2.7
3.5
0.5
8.6
8.1
136
54
(75)
20
22
(2)
(14)
16
(31.3)
(73.0)
(97.8)
(85.2)
(60.5)
(23.3)
(84.2)
10.6
7.9
0.9
(17.8)
5.4
6.0
(0.7)
(7.2)
8.4
1.9
Profit/Loss before
248
134
20
(174)
36
78
67
(4)
210
209
(25.7)
(62.4)
(94.9)
(85.7)
(41.9)
232.8
492.4
169.0
9.1
5.1
0.8
(7.9)
1.6
3.2
3.0
(0.2)
8.6
7.7
34
47
89
(88)
20
12
(96)
93
(1)
213
122
(28)
(268)
121
56
54
91
116
208
2,890
4,771
4,866
4,836
5,164
5,657
5,385
5,237
5,446
5,314
976
449
705
508
350
356
125
180
70
79
2,028
1,529
(52 )
8,616
4,057
3,660
4,321
1,079
800
1,530
5,895
6,749
5,520
13,960
9,571
9,673
9,831
6,495
6,316
6,923
Liabilities
Total Capital Employed
FY14
FY15
FY16
5,603
7,608
8,331
35.8
9.5
EBIT
484
11
330
8.6
0.1
4.0
6,496
1,987
989
(69.4)
(50.2)
EBIT
595
21
9.2
0.2
2.2
10
B&K R esearch
August 2016
Net Sales
1,400
40
35
30
25
20
15
10
5
0
1,200
1,000
600
Rs mn
800
400
200
Gross Profit
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
4QCY14
3QCY14
2QCY14
1QCY14
4QCY13
3QCY13
1QCY13
2QCY13
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
4QCY14
3QCY14
2QCY14
1QCY14
4QCY13
3QCY13
40
30
20
10
0
(10)
(20)
(30)
(40)
2QCY13
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1QCY13
Rs mn
300
10
10
200
100
EBITDA
Adj PAT
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
1QCY13
EBITDA Margin
4QCY14
(15)
3QCY14
(300)
2QCY14
(10)
1QCY14
(200)
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
4QCY14
3QCY14
2QCY14
1QCY14
4QCY13
3QCY13
2QCY13
(10)
(5)
(100)
4QCY13
(5)
3QCY13
Rs mn
2QCY13
500
400
300
200
100
0
(100)
(200)
(300)
1QCY13
Rs mn
EBIT mix
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
4QCY14
3QCY14
2QCY14
1QCY14
4QCY13
3QCY13
2QCY13
500
400
300
200
100
0
(100)
(200)
(300)
1QCY13
1QFY17
4QFY16
4QCY15
3QCY15
2QCY15
1QCY15
4QCY14
3QCY14
2QCY14
1QCY14
4QCY13
3QCY13
2QCY13
Rs mn
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1QCY13
Rs mn
Revenue mix
11
B&K R esearch
August 2016
Income Statement
Net sales
Growth (%)
12.0
Operating expenses
13.3
(16.9)
13.1
Operating profit
1,119
862
(133)
205
251
347
378
426
EBITDA
1,370
1,209
245
632
Growth (%)
(9.6)
(11.8)
(79.7)
157.3
Depreciation
Other income
191
179
137
373
1,345
1,153
50
450
(14)
(18)
(11)
(7)
92
1,122
11,836
235
1,423
2,258
11,874
678
(410)
(590)
(2,441)
(150)
1,013
1,668
9,433
529
Reported Profit/(Loss)
1,013
1,668
9,433
529
939
770
(35)
340
(15.5)
(18.1)
EBIT
Finance cost
Exceptional & extraordinary
Profit before tax
Growth (%)
1,423
2,258
11,874
678
216
234
332
555
(252)
(308)
1,386
(1,952)
(402)
(572)
(2,409)
(43)
Others
Depreciation
825
Capital expenditure
(213)
(312)
(1,900)
(613)
Change in investments
354
(298)
2,349
(336)
Others
136
126
81
152
277
(484)
530
(798)
Share capital
267
267
267
231
4,749
5,477 13,694
6,085
Shareholders funds
5,015
5,743 13,960
6,316
(390)
(2)
95
(95)
(1,239)
(858)
(1,840)
(4,361)
(3)
(142)
(47)
(5) (3,147)
9,889 (9,826)
Key ratios
Period end (%)
Growth
1,103
Balance Sheet
CEPS (Rs)
Book NAV/share (Rs)
28.9
(1.3)
14.7
(15.5)
(18.1)
43.3
37.7
11.1
38.8
188.1
215.4
523.6
273.6
Dividend/share (Rs)
27.5
30.0
39.0
173.3
84.1
56.3
12.9
877.5
EBITDA margin
12.5
9.7
2.3
5.3
Non-current liabilities
340
331
349
413
EBIT margin
12.6
9.5
0.5
3.9
340
331
349
413
Tax rate
29.4
32.2
20.6
23.1
2,858
3,041
4,115
2,189
RoCE
25.7
20.2
0.5
4.3
(0.5)
(0.5)
(0.7)
(0.1)
Current liabilities
95
2,858
3,041
4,021
2,189
9,115 18,424
8,917
Non-current assets
2,240
2,442
4,296
4,422
1,835
1,915
3,482
3,645
77
67
72
67
460
743
710
6,674 14,128
4,495
Non-current Investments
Current assets
5,974
2,413
2,833
10,373
912
3,562
3,840
3,755
3,583
Total (Assets)
8,214
9,115 18,424
8,917
Total debt
Capital employed
0
5,356
95
6,075 14,403
6,728
8.8
6.3
(0.4)
3.0
1.3
1.4
0.7
0.8
1.6
1.6
1.4
1.3
Return on equity
19.0
14.3
(0.4)
3.4
Valuations
Period end (x)
PER
18.2
21.4
49.2
PCE
14.8
16.4
77.9
18.7
Price/Book
3.4
2.9
1.7
2.6
Yield (%)
4.3
4.9
4.5
23.9
10.7
11.3
52.3
25.1
EV/EBITDA
12
B&K R esearch
August 2016
B&K Research
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164
125
120
117
no. of companies
no. of companies
180
160
140
120
100
80
60
40
20
0
By Recommendation
100
26
80
74
74
60
40
23
20
11
0
> $2bn
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<$200mn
BUY
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