-
IPO Update
IPO UPDATE
Reasonably Valued
Salient features of the IPO: Shankara Building Products Ltd.
(SBPL) is one of the leading
organized retailers of home improvement and building products in
India, operating under the trade name Shankara BuildPro. As on 31st
Dec. 2016, it operated 103 Shankara BuildPro stores.
The issue is a combination of fresh issue (Rs. 450mn) and offer
for sale (Rs. 2,869.6 3,000). Net proceeds from the issue will be
mainly used to trim the debt of the company.
Key competitive strengths: Offers a comprehensive range of home
building products Presence across the entire value chain Robust
back-end setup ensuring efficient supply chain management Strong
track record and financial stability
Risk and concerns: Subdued economic expansion Increased
competition Renewal of rent lease agreement
Valuation & recommendation:
There is no comparable peer in the organized retailing of home
improvement and building products. At the higher price band of Rs.
333 per share, SBPLs share is valued at a P/E multiple of 25.4x.
Moreover on P/BVPS and EV/EBITDA basis, it is priced at 3.6x and
10.5x, respectively.
Below are few key observations of the issue: The market size of
the organized home improvement retail market in
India is around Rs. 1.5-1.8tn. The company is well diversified
in terms of the reach as it generated 36%, 24% and 40% of the
revenue from the tire 1, tier 2 and tire 3 cities,
respectively.
SBPL operates under three segments, Retail, Enterprise and
Channel, each contributing 39.7%, 32.2% and 28.1%, respectively to
the net revenue. Through its subsidiaries, it also has processing
facilities of 0.3mn tonnes and produce various steel products.
Output from these facilities is monetized via the three operating
segments.
Apart from the selling of owned products, the company also has
tie-up with third party building product brands. Renowned third
party branded products are Johnson, Sintex, Uttam Galva, Uttam
Value, Futura, APL Apollo, Astral Pipes and Alstone. 50% of the
business from the Retail segment is generated from owned
brands.
On the back of 21.9% CAGR increase in the retail stores, SBPL
reported a 28.7% CAGR rise in the retail business over FY12-16. It
has consistently reported a double digit same stores sales growth
over the same period. This segment has an EBITDA margin of 9-10% as
compared to 5% of the Channel and Enterprise segment. Moreover, the
retail operation has a working capital cycle of 30+ days as compare
to 60+ days for the Enterprise segment and 45+ days for the Channel
segment. With key focus on retail operations in future, the company
might report improved profitability.
Over FY12-16, consolidated revenue and EBITDA increased by 9.5%
and14.3% CAGR. EBITDA margin remained in the range of 4.5-6% over
the same period. Reported PAT increased by 7.6% CAGR with PAT
margin in the range of 1-2%. Except for FY12, the company has
consistently generated positive cash flow from operations,
indicating cash generation for future capex. Moreover, over
FY12-16, it has generated positive free cash flow with an average
RoIC of 25%.
Annualizing the nine months performance, we arrive at an EPS of
Rs. 24.2 for FY17. Thus at a higher price band, the demanded P/E
multiple is around 19x, which we believe is justified keeping in
mind its average RoE of 14% over FY12-16. Considering the above
observations, we recommend a SUBSCRIBE rating for the issue.
1
Recommendation SUBSCRIBE
Price Band (Rs.) Rs. 440 460
Face Value (Rs.) Rs. 10
Shares for Fresh Issue (mn) 0.98 1.02mn
Shares for OFS (mn) 6.5mn
Fresh Issue Size (Rs. mn) Rs. 450mn
OFS Issue Size (Rs. mn) Rs. 2,869.6 3,000mn
Total Issue Size (Rs. mn) Rs. 3,319.6 3,450mn
Bidding Date 22nd Mar. 24th Mar. 2017
MCAP on Higher Price Band Rs. 10,511mn
Book Running Lead Manager IDFC Bank Ltd., Equirus Capital Pvt.
Ltd. and HDFC Bank Ltd.
Registrar Karvy Computershare Pvt. Ltd.
Sector/Industry
Promoters Sukumar Srinivas
Pre - Issue Shareholding Pattern
Promoter & Promoter Group 62.4%
Public 37.6%
Total 100%
Retail Application Money at Higher Cut-Off Price per Lot
Number of Shares per Lot 32
Application Money Rs. 14,720
Analyst
Rajnath Yadav
Research Analyst (022 - 6707 9999; Ext: 912)
Email: [email protected]
21st Mar. 2017
Shankara Building Products Ltd.
Consolidated Financial Snapshot (Rs. mn) FY12 FY13 FY14 FY15
FY16 9M FY17 Total Operating Income 14,137.0 17,665.6 19,271.0
19,788.2 20,359.2 17,097.5 EBITDA 701.2 869.4 886.0 895.2 1,197.5
1,087.9 Adjusted PAT 308.6 318.2 287.1 225.8 413.3 415.5 EBIDTA
Margin (%) 5.0% 4.9% 4.6% 4.5% 5.9% 6.4% Restated Adjusted PAT
Margin (%) 2.2% 1.8% 1.5% 1.1% 2.0% 2.4% RoE (%) 18.7% 15.9% 12.3%
8.9% 14.2% 12.5% RoCE (%) 17.5% 17.2% 15.9% 14.7% 21.3% 16.2%
Source: Company RHP
-
IPO Update
IPO UPDATE 2
About the issue: SBPL is coming up with an initial public
offering (IPO) with 7.5 7.54mn shares (fresh issue: 0.98 1.02mn;
OFS shares:
6.5mn) in offering. Total IPO size is estimated at around Rs.
3,319.6 3,450mn.
The issue will open on 22nd Mar. 2017 and close on 24th Mar.
2017.
Not more than 50% of the issue will be allocated to qualified
institutional buyers. Further, at most 15% of the issue will be
available for non-institutional bidders and the remaining 35% for
retail investors.
The proceeds from the fresh issue will be utilized to repay or
pre-payment of loan availed by the company.
It promoter holds 62.4% stake in the company and post IPO this
will come down to 31.2%. Public holding will increase from 37.6% to
68.8%.
Tentative IPO Process Time Line
Date
Anchor Investor 21-Mar-17
Offer Opens on 22-Mar-17
Offer Closes on 24-Mar-17
Finalization of Basis of Allotment 30-Mar-17
Unblocking of ASBA Account 31-Mar-17
Credit to Demat Accounts 03-Apr-17
Listing on Stock Exchanges 05-Apr-17
Source: Company RHP
Pre and Post Issue Shareholding Pattern (%)
Pre Issue Post Issue (at higher price band)
Promoter & Promoter Group 62.4% 31.2%
Public 37.6% 68.8%
Source: Company RHP
-
IPO Update
IPO UPDATE 3
Housing industry in India: In FY16, the size of the real estate
industry (inclusive of residential, commercial, retail, hospitality
and educational projects) in India is estimated in the range of Rs.
8.5-9tn. The housing real estate industry accounted for about 80%
of the total real estate industry at about Rs. 7-7.5tn, the balance
being contributed by commercial, retail, hospitality and
educational projects. Within the housing industry, the share of
building materials is estimated at approximately 45%, which
translates to Rs. 3.2-3.4tn in value terms. The key factors that
will drive the housing demand are as follows: Population growth
Urbanization Tax incentives Growth in government investments
towards housing segment and Government initiatives such as
implementation of real estate act, housing for all scheme, smart
cities and AMRUT mission
and other flagship programs.
Building Material Industry: Construction of a housing unit
involves various building materials, including cement, sand, steel,
bricks, plumbing, sanitary ware and electrical products. The cost
component of the key building materials of a representative housing
unit is set forth below:
Source: Company RHP, Note: In case of organized vs. unorganized,
the colored section of the pie represents the organized share.
Source: Company RHP
Cement, steel, bricks, door frames & shutter, flooring,
plumbing, painting and electrical account for more than
three-fourth share in the overall building material cost break-up.
The percentage break-up of costs can differ over different building
typologies in different towns/cities depending upon the
availability of building materials. Building materials are utilized
across real estate construction segments, such as residential
(individual houses or apartments), commercial (office spaces),
retail (malls and showrooms), hospitality (hotels), healthcare
(hospitals and clinics) and education institutes (schools and
colleges) spaces. A summary of the eight key segments of the
building materials industry are set-forth below:
-
IPO Update
IPO UPDATE 4
Building Material Industry (Contd): The building materials
industry (comprising of the above listed segments) in India is
currently sized at approximately Rs. 4.4-4.8tn as of FY16. These
segments have grown at a CAGR of 5-5.5% over the past 3 years.
Going forward, it is estimated that the segments will reach Rs.
6.8-7tn by FY21, representing a growth of 8-8.5% CAGR.
Retailing of building material in India: In FY16, the home
improvement retail market in India for eight key segments was sized
at Rs. 1.5-1.8tn. While the organized retailing has reached healthy
penetration levels in the apparel, footwear and consumer durable
segments, it has yet to make a mark in the building materials
segments. The home improvement retail industry in India can be
defined as that catering to small consumers, such as home owners,
architects, interior designers and contractors, which is typically
serviced by dealers or retailers of such products. Such dealers or
retailers, who typically operate in single or multiple building
materials segments, across single or multiple stores, have been
present since several decades. In recent times, branded
manufacturers of building materials, such as JSW (via JSW Shoppe
and JSW Explore for steel products), Essar (via Essar Hypermart for
steel products), Cera (via Cera Style Studio for sanitary ware,
faucets and tiles) Phillips (via Phillips Light Lounge for
decorative lighting products), have increased their presence in the
retail category via their retail outlets. However, such stores
typically cater to only those segments in which they specialize and
house only their in-house brands. According to Crisil, in India
there are limited players who offer multiple building materials
segments across brands on a pan-India level.
Distribution channel for building materials: Manufacturers,
especially branded players, sell their products via
wholesalers/distributors. Increasingly, branded players have also
started scaling up their own experience stores/ design studios. The
wholesaler/ distributor are the point of contact for
retailer/dealer. At times, bulk orders are also routed through the
wholesaler/ distributor. The dealer/retailer serves as the final
link in the chain for end users like homeowners, architects,
interior designers and small contractors. Generally, such dealers
or retailers focus their offerings on a particular segment (for
e.g. ceramic tiles) and house several brands as well as generic
products available in that particular segment. In many cases, given
the synergies between these segments, dealers or retailers may sell
more than one segment in order to capture a larger share of the
consumers wallet. But the retailers providing multiple building
product segments under one roof are very few.
Source: Company RHP
Demand drivers for growth of the home improvement retail:
Increase in population, nuclear families Increase in urbanization,
income level Easy availability of finances Changing aspirations of
consumers Increase in product and brand awareness Changing trends
in renovations and remodeling
-
IPO Update
IPO UPDATE 5
Company Introduction: Based on the number of stores operating,
Shankara Building Products Ltd. (SBPL) is one of the leading
organized retailers of home improvement and building products in
India. It operates these stores under the trade name Shankara
BuildPro. As on 31st Dec. 2016, the company operated 103 Shankara
BuildPro stores spread across 9 states and 1 union territory in
India, catering to a large customer base across various end-user
segments in urban and semi-urban markets through its multi-channel
sales approach, processing facilities, supply chain and logistics
capabilities. SBPLs retail operations are strategically suited to
benefit from growth in housing demand, large market for home
improvement, and increasing customer involvement in home solution
decisions which have created a need for organized specialty home
improvement and building product stores. Its growth is further
driven by its ability to make available an assortment of quality
products under a trusted corporate brand built over two decades.
The company serves home owners, professional customers (such as
architects and contractors), and small enterprises, through its
retail stores. Under the retail operations, it offers a
comprehensive range of products at its stores, including structural
steel, cement, TMT bars, hollow blocks, pipes and tubes, roofing
solutions, welding accessories, primers, solar heaters, plumbing,
tiles, sanitary ware, water tanks, plywood, kitchen sinks, lighting
and other allied products. It offers reputed third party brands
such as Johnson, Sintex, Uttam Galva, Uttam Value, Futura, APL
Apollo, Astral Pipes and Alstone and its own brands such as
CenturyRoof, Ganga and Loha at its retail stores. Over FY12-16, the
business from retail operations increased by 28.7% CAGR to Rs.
8,077.6mn. For the nine month ended FY17, the business stood at Rs.
7,157.1mn.
Source: Company RHP
SBPLs enterprise sale caters primarily to large end-users,
contractors, and OEMs, while the channel sales caters to dealers
and other retailers through its extensive branch network. In these
operations, the company primarily offers steel based products, such
as structural steel, TMT bars, pipes and tubes and other allied
steel products. Given the wide application of such building
products, it is able to cater to multiple sectors, including, among
others, housing, general engineering, automotive, renewable energy,
agriculture, construction and infrastructure. SBPL also provide
customized solutions to its enterprise customers through its
bespoke steel products such as bus bodies, scaffolding solutions
and other allied products for select clients. Over FY12-16, the
business from channel operation declined by 2.7% CAGR to Rs.
5,726.7mn, while the enterprises operations business increased by
8% CAGR to Rs. 6,554.9mn. For the nine month ended FY17, the
businesses from this segments stood at Rs. 4,239.2mn and Rs.
5,701.2mn, respectively.
Source: Company RHP
-
IPO Update
IPO UPDATE 6
Company Introduction (Contd): SBPL is backward integrated
through its processing facilities in select building products like
steel pipes; color coated roofing sheets, bright rods, galvanized
strips and cold rolled strips. It sells these products under its
owned brands like CenturyRoof, Ganga, Loha, Taurus and Prince Galva
through the retail and branch network. As on 31st Dec. 2016, the
company had 11 processing facilities with a total installed
capacity of 0.3mn tonnes per annum and operating at an average
annualized capacity utilization of 93.8%.
To cater to its customers, SBPL also have a robust logistics
network which, as of 31st Dec. 2016, consisted of 56 warehouses
aggregating 0.6mn sq. ft. and a fleet of 44 owned trucks to augment
last mile delivery. A large part of the warehousing backbone is
owned by the company which ensures stability of operations. It also
helps in catering to the requirements of its retail outlets. With
an aim to offer a comprehensive range of products, SBPL has
expanded its product offerings and as of 31st Dec. 2016, its
product portfolio comprised of 19,230 SKUs, which has resulted in
enhanced growth and profitability at the retail store level.
Additionally, its total number of retail stores has consistently
grown from 43 in FY12 end to 95 by FY16 end, evidencing a sq. ft.
growth from 0.13mn to 0.32mn.
Source: Company RHP
Source: Company RHP
-
IPO Update
IPO UPDATE 7
Company Introduction (Contd):
Source: Company RHP
Source: Company RHP
-
IPO Update
IPO UPDATE 8
Company Introduction (Contd): Over FY12-16, consolidated
operating revenue increased by 9.5% CAGR to Rs. 20,359.2mn. During
the same period, operating expenditure increased by 9.3% CAGR,
thereby leading to a 14.3% CAGR rise in consolidated EBITDA to Rs.
1,197.5mn. EBITDA margin remained in the range of 4.5-6% over the
same period. On the back of higher depreciation and finance charge,
reported PAT increased by 7.6% CAGR to Rs. 413.3mn in FY16. PAT
margin remained in the range of 1-2% over the same period. For the
nine month ended 31st Dec. 2016, total operating revenue stood at
Rs. 17,097.5mn with an EBITDA of Rs. 1,087.9mn. EBITDA margin stood
at 6.4% as compared to 5.9% in FY16. Reported PAT stood at Rs.
415.5mn with PAT margin of 2.4% as compared to 2% in FY16.
Source: Company RHP
Source: Company RHP
-
IPO Update
IPO UPDATE 9
Competitive Strengths: Offers a comprehensive range of home
building products under one roof Strong vendor network and
relationship built over two decades Presence across the entire
value chain Robust back-end infrastructure ensuring efficient
supply chain management Strong track record and financial
stability
Business Strategy:
Expansion of the retail operations Enhancing its product
offerings Increasing presence in bespoke products Further
strengthening of value chain Focus on brand equity and
marketability in the home improvement and building space
Risk and Concerns:
Subdued economic expansion Slowdown in the retail business
Increased competition Renewal of rent lease agreement
-
IPO Update
IPO UPDATE 10
Peer Comparison:
Company Name EPS (Rs.)
BVPS (Rs.)
DPS (Rs.)
Debt Equity Ratio
Fixed Asset Turnover Ratio
RoE (%) RoCE (%) P / E (x)
P / B (x)
EV / Sales (x)
EV / EBITDA (x)
MCAP / Sales (x)
Shankara Building Products Ltd. 18.1 127.2 1.4 0.7 8.7 14.2%
21.3% 25.4 3.6 0.6 10.5 0.5
Company Name Face Value
(Rs.) CMP (Rs.)
MCAP (Rs. mn)
FY16 Total Operating Revenue (Rs. mn)
FY16 EBITDA (Rs. mn)
FY16 PAT (Rs. mn)
FY16 EBITDA Margin (%)
FY16 PAT Margin (%)
Shankara Building Products Ltd. 10 460.0 10,511 20,359 1,198 413
5.9% 2.0%
Source: Choice Broking Research, Company RHP
There is no comparable peer in the organized retailing of home
improvement and building products. At the higher price band of Rs.
333 per share, SBPLs share is valued at a P/E multiple of 25.4x.
Moreover on P/BVPS and EV/EBITDA basis, it is priced at 3.6x and
10.5x, respectively. Below are few key observations of the issue:
SBPL is one of the leading organized retailers of home improvement
and building products in India, operating under the
brand name Shankara BuildPro. The market size of the organized
home improvement retail market in India is around Rs. 1.5-1.8tn.
The company is well diversified in terms of the reach as it
generated 36%, 24% and 40% of the revenue from the tire 1, tier 2
and tire 3 cities, respectively.
SBPL operates under three segments, Retail, Enterprise and
Channel, each contributing 39.7%, 32.2% and 28.1%, respectively to
the net revenue.
Through its subsidiaries, it also has processing facilities of
0.3mn tonnes and produce products like steel pipes, color coated
roofing sheets, galvanized strips and cold rolled strips under the
brands CenturyRoof, Ganga, Loha, Taurus and Prince Galva. Output
from these facilities is monetized via the three operating
segments.
Apart from the selling of owned products, the company also has
tie-up with third party building product brands. Renowned third
party branded products are Johnson, Sintex, Uttam Galva, Uttam
Value, Futura, APL Apollo, Astral Pipes and Alstone. 50% of the
business from the Retail segment is generated from owned
brands.
On the back of 21.9% CAGR increase in the retail stores, SBPL
reported a 28.7% CAGR rise in the retail business over FY12-16. It
has consistently reported a double digit same stores sales growth
over the same period. This segment has an EBITDA margin of 9-10% as
compared to 5% for the Channel and Enterprise segment. Moreover,
the retail operation has a working capital cycle of 30days as
compare to 60+ days for the Enterprise segment and 45+ days for the
Channel segment. Going forward, the company is mainly focus on
expanding its retail operations, which will expand its
profitability margin. On an average, the company reports a store
level breakeven within a year.
SBPL has a robust logistics network consisting of 56 warehouses
aggregating 0.6mn sq. ft. and a fleet of 44 owned trucks. As a
result, it has a logistics cost, which is around 1% of the total
revenue. Such large owned warehouse facilities assist it in
ensuring the stability in its operations and meet the requirement
of the retail outlets. Additionally, the implementation of GST will
be positive for the retail sector as it will help in better
managing the inventory across the network.
As of FY16, SBPL had total debt of Rs. 2,135.4mn. Net proceeds
of Rs. 340mn will be utilized to repay or pre-pay loans availed by
the company. Currently, it has a debt equity ratio of 0.8x and post
repayment of the debt, the ratio will decline to 0.7x.
Through this IPO, the private equity investor Fairwinds Trustees
Services Pvt. Ltd. will offload 5.7mn shares and its stake in the
company will decline from 33.6% pre-issue to 7.2% post-issue.
Over FY12-16, consolidated operating revenue increased by 9.5%
CAGR to Rs. 20,359.2mn, while EBITDA increased by 14.3% CAGR.
EBITDA margin remained in the range of 4.5-6% over the same period.
Reported PAT increased by 7.6% CAGR with PAT margin in the range of
1-2%. Except for FY12, the company has consistently generated
positive cash flow from operations, indicating cash generation for
future capex. Moreover, for the each year over FY12-16, it has
generated positive free cash flow with average RoIC of 25%. For the
nine month ended 31st Dec. 2016, total operating revenue stood at
Rs. 17,097.5mn with an EBITDA of Rs. 1,087.9mn. EBITDA margin stood
at 6.4% as compared to 5.9% in FY16. Reported PAT stood at Rs.
415.5mn with PAT margin of 2.4% as compared to 2% in FY16.
Annualizing the nine months performance, we arrive at an EPS of
Rs. 24.2 for FY17. Thus at a higher price band, the demanded P/E
multiple is around 19x, which we believe is justified keeping in
mind its average RoE of 14% over FY12-16. Considering the above
observations, we recommend a SUBSCRIBE rating for the issue.
-
IPO Update
IPO UPDATE 11
Financial Statements:
Source: Company RHP
Source: Company RHP
Consolidated Profit and Loss Statement (Rs. mn) FY12 FY13 FY14
FY15 FY16 9M FY17
Revenue from Operations (Net) 14,137.0 17,665.6 19,271.0
19,788.2 20,359.2 17,097.5 Cost of Materials Consumed (2,662.1)
(4,404.9) (5,952.3) (7,628.5) (7,990.5) (7,688.0) Purchases of
Stock in Trade (10,397.3) (11,966.4) (11,615.6) (10,021.2)
(9,851.1) (7,310.0) Changes in Inventories of Finished Goods, Work
in Progress and Stock in Trade
271.9 451.2 203.7 69.9 169.9 282.6
Employee Benefits Expense (151.9) (212.0) (264.0) (350.1)
(412.9) (367.6) Other Expenses (496.3) (664.1) (756.9) (963.1)
(1,077.1) (926.7) EBITDA 701.2 869.4 886.0 895.2 1,197.5 1,087.9
Depreciation and Amortization Expense (28.9) (46.4) (57.6) (88.1)
(95.1) (85.0) EBIT 672.3 823.0 828.4 807.2 1,102.4 1,002.9 Finance
Costs (227.8) (348.7) (416.4) (470.3) (459.7) (374.5) Other Income
2.9 3.3 8.2 8.5 6.6 1.4 PBT 447.5 477.6 420.1 345.4 649.3 629.7 Tax
Expenses (138.9) (159.4) (133.0) (119.6) (235.9) (214.2) PAT 308.6
318.3 287.1 225.8 413.4 415.6 Minority Interest (0.0) (0.1) (0.0)
(0.1) (0.1) (0.1) Reported PAT 308.6 318.2 287.1 225.8 413.3
415.5
Consolidated Balance Sheet Statement (Rs. mn) FY12 FY13 FY14
FY15 FY16 9M FY17
Share Capital 203.1 211.7 218.7 218.7 218.7 218.7 Reserves and
Surplus 1,411.6 1,786.9 2,114.5 2,313.6 2,687.3 3,102.8 Minority
Interest 33.5 0.2 0.2 0.3 0.4 0.5
Long Term Borrowings 191.3 115.8 58.0 65.6 52.6 76.6
Deferred Tax Liabilities (Net) 31.5 56.0 83.0 98.4 131.2 151.7
Other Long Term Liabilities 0.8 0.6 0.6 0.7 0.2 0.2 Long Term
Provisions 1.0 1.0 1.0 6.2 6.5 7.2 Short Term Borrowings 1,973.4
2,599.1 2,736.2 2,788.4 2,082.7 2,632.9 Trade Payables 717.4
1,078.6 1,210.6 1,380.7 2,338.1 1,895.9 Other Current Liabilities
167.4 192.1 277.8 285.8 319.0 411.6 Short Term Provisions 67.2 49.4
66.2 95.6 154.5 163.8 Total Liabilities 4,798.2 6,091.4 6,766.7
7,253.9 7,991.1 8,661.8
Tangible Assets 1,067.8 1,334.7 1,601.8 1,906.3 2,192.8 2,408.4
Capital Work in Progress 4.8 1.1 Goodwill on Consolidation 21.2
40.3 149.6 140.4 140.4 140.4 Long Term Loans and Advances 70.4 88.4
109.2 123.2 126.8 114.1 Other Non Current Assets 6.5 3.2 11.5 25.0
22.7 40.5 Deferred Tax Assets (Net) 8.9 1.2 0.0 Inventories 1,295.5
1,849.3 2,212.3 2,320.7 2,558.8 2,902.0 Trade Receivables 2,182.9
2,599.0 2,496.5 2,598.2 2,810.4 2,910.6 Cash and Bank Balances 25.5
20.0 27.5 23.6 23.7 22.1 Short Term Loans and Advances 85.9 67.1
148.4 114.9 114.8 123.7 Other Current Assets 37.8 88.3 1.1 0.4 0.8
0.0 Total Assets 4,798.2 6,091.4 6,766.7 7,253.9 7,991.1
8,661.8
-
IPO Update
IPO UPDATE 12
Financial Statements (Contd):
Source: Company RHP
Source: Company RHP
Consolidated Cash Flow Statement (Rs. mn)
Particulars (Rs. mn) FY12 FY13 FY14 FY15 FY16 9M FY17
Cash Flow from Operating Activities (440.0) 94.9 641.6 796.1
1,594.8 86.6
Cash Flow from Investing Activities (506.1) (328.1) (395.7)
(395.4) (378.6) (299.6)
Cash Flow from Financing Activities 937.1 227.7 (256.3) (403.3)
(1,215.8) 211.4
Net Cash Flow (9.0) (5.5) (10.3) (2.6) 0.4 (1.7) Cash and Cash
Equivalent at the Beginning of the Year 34.6 25.5 36.3 25.9 23.3
23.7 Cash and Cash Equivalent at the End of the Year 25.5 20.0 25.9
23.3 23.7 22.1
Consolidated Financial Ratios
Particulars (Rs. mn) FY12 FY13 FY14 FY15 FY16 9M FY17
Revenue Growth 25.0% 9.1% 2.7% 2.9%
EBIDTA Growth 24.0% 1.9% 1.0% 33.8%
EBIDTA Margin 5.0% 4.9% 4.6% 4.5% 5.9% 6.4%
EBIT Growth 22.4% 0.7% -2.6% 36.6%
EBIT Margin 4.8% 4.7% 4.3% 4.1% 5.4% 5.9%
Reported PAT Growth 3.1% -9.8% -21.4% 83.1%
Reported PAT Margin 2.2% 1.8% 1.5% 1.1% 2.0% 2.4%
Liquidity Ratios
Current Ratio 1.2 1.2 1.1 1.1 1.1 1.2
Debt Equity Ratio 1.3 1.4 1.2 1.1 0.7 0.8
Inventories Days 33.4 38.2 41.9 42.8 45.9 62.0
Debtor Days 56.4 53.7 47.3 47.9 50.4 62.1
Payable Days 18.5 22.3 22.9 25.5 41.9 40.5
Cash Conversion Cycle 37.8 31.4 24.4 22.5 8.5 21.7
Net Debt to EBITDA 3.1 3.1 3.1 3.2 1.8 2.5
Turnover Ratios
Inventories Turnover Ratio (x) 11.2 9.5 8.7 8.3 6.3
Trade Receivable Turnover Ratio (x) 7.4 7.6 7.8 7.5 6.0
Accounts Payable Turnover Ratio (x) 19.7 16.8 15.3 10.9 8.1
Fixed Asset Turnover Ratio (x) 12.9 12.8 11.0 9.7 8.7 6.7
Total Asset Turnover Ratio (x) 2.9 2.9 2.8 2.7 2.5 2.0
Return Ratios
RoE (%) 18.7% 15.9% 12.3% 8.9% 14.2% 12.5%
RoA (%) 6.4% 5.2% 4.2% 3.1% 5.2% 4.8%
RoCE (%) 17.5% 17.2% 15.9% 14.7% 21.3% 16.2%
Free Cash Flow (Rs. mn) (10.2) 278.3 439.0 288.4 308.2 203.7
RoIC (%) 26.1% 26.9% 25.8% 21.9% 25.0% 20.3%
Per Share Data
Restated Adjusted EPS (Rs.) 13.5 13.9 12.6 9.9 18.1 18.2
Restated DPS (Rs.) 0.9 0.9 0.9 1.0 1.4 0.0
BVPS (Rs.) 72.1 87.5 102.1 110.8 127.2 145.4
Restated Operating Cash Flow Per Share (Rs.) (19.3) 4.2 28.1
34.8 69.8 3.8
Restated Free Cash Flow Per Share (Rs.) (0.4) 12.2 19.2 12.6
13.5 8.9
