1. business and industrial
2. chemicals industry
3. plastics and polymers

28 January 2015
3QFY15 Results Update | Sector: Others
Sintex Industries
BSE SENSEX
29,559
Bloomberg
S&P CNX
8,914
SINT IN
Equity Shares (m)
386.6
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
CMP: INR114
n
120/31
15/16/202
Avg Val (INRm)/Vol ‘000 472/6103
61.3
n
Financials & Valuation (INR b)
Y/E Mar
2015E 2016E 2017E
Net sales
69.2
82.0
98.9
EBITDA
11.7
13.9
18.5
Adj. PAT
Adj EPS (INR)
4.8
11.4
5.7
13.4
8.2
17.9
EPS Gr. (%)
-6.7
17.3
33.7
BV/Sh. (INR)
11.7
11.5
13.5
RoCE (%)
10.9
10.8
12.8
7.5
7.0
7.0
10.0
8.5
6.4
P/BV (x)
1.0
0.9
0.8
EV/EBITDA (x)
7.9
6.7
5.1
Div. Yield (%)
0.6
0.6
0.6
Payout (%)
Valuations
P/E (x)
Estimate change
TP change
Rating change
n
110.7 123.1 141.7
RoE (%)
3-6%
15%
Buy
EBITDA in line; business recovery on track; FCCB overhangs remain
44.2/0.7
Free float (%)
TP: INR149 (+31%)
n
n
EBITDA in line; lower tax boosts PAT: Sintex Industries’ (SINT) 3QFY15 revenue
grew 32% YoY to INR18.3b (v/s est. of INR17.1b), while marginal correction in
operating margin translates into EBITDA at INR3.1b, +25% YoY (v/s est. of INR3b).
MAT credit brought down the effective tax rate to ~7% in 3Q (v/s 32% in 1HFY15),
which boosts PAT to INR1.7b, +90% YoY (v/s est. of INR1.2b).
Momentum intact in Prefab, Textile; asset stabilization drives composites:
Prefab and Textile verticals continue to post strong sales growth (28% YoY and
23% YoY respectively) along with margin expansion led by better utilization and
strong product mix. Contribution from the recently-acquired Simonin boosts
revenue from overseas composites by 55% YoY. Domestic composites recorded
13% YoY growth in revenue along with 1pp QoQ uptick in margins.
Weak quarter for monolithic; outlook elusive yet optimistic: Monolithic segment
posted ~40% YoY de-growth in 3Q, along with margin contraction of 3-3.5pp QoQ
due to certain cancellations. Outlook remains elusive with a revival dependent on
clarity on government’s plan to implement mass housing projects. FY15 revenue
guidance moderated to INR6-7b (v/s INR7.5b+ earlier).
Revise estimates: We cut FY15E-17E revenue for monolithic segment by 15-20%
and raise overseas composites revenue by 5-13%. This translates into 1-3% cut in
EBITDA estimates. Lower tax estimate on the back of MAT credit to be assumed
in the coming quarters; we raise FY15E/16E/17E EPS by 6%/5%/3%.
Valuation and view - business recovery cycle on track: SINT’s business cycle is
favorably poised with an improvement in macro outlook and likely uptick in
government and private spending in related verticals. FCCB dilution concerns
remain an impediment albeit a significant conversion (~50%) is behind. The stock
trades at 6.4x FY17E EPS, 5.1x FY17E EV/EBITDA. We value SINT at 6x FY17E
EV/EBITDA (v/s 6.5x FY16E earlier) to arrive at a target price of INR149/share
(31% upside). Maintain Buy.
Sandipan Pal ([email protected]); +91 22 3982 5436
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Sintex Industries
EBITDA in line; lower tax boost PAT
n
n
Sintex Industries (SINT)’s 3QFY15 revenue grew 32% YoY to INR18.3b (v/s est of
INR17.1b), while marginal correction in operating margins translates into
EBITDA at INR3.1b, +25% YoY (v/s est of INR3b).
The company assumed MAT credit ahead of high profit contribution from its
spinning projects FY16 onwards, which resulted into sharp decline in effective
tax rates to ~7% in 3Q (v/s 32% in 1HFY15). This boost PAT at INR1.7b, +90%YoY
(v/s est of INR1.2b).
Exhibit 1: Segmental revenue break-up (INR m)
Verticals
Textiles
Plastics
Building Materials
Prefab
Monolithic and EPC
Tanks
Composites
Domestic
Foreign
Total
1QFY14
1,108
10,131
4,672
2,048
1,869
755
5,459
1,872
3,587
11,281
2QFY14
1,306
12,324
6,444
3,031
2,663
750
5,880
2,351
3,529
13,649
3QFY14
1,516
12,234
5,815
3,215
1,950
650
6,419
2,690
3,729
13,750
4QFY14
1,530
18,340
10,440
3,440
6,060
940
7,900
3,680
4,220
19,870
1QFY15
1,535
11,880
5,670
2,600
2,370
700
6,210
2,530
3,680
13,415
2QFY15
1,710
15,030
8,100
3,960
3,310
830
6,930
2,910
4,020
16,740
3QFY15
1,860
16,400
7,590
4,130
2,610
850
8,810
3,040
5,770
18,260
4QFY15
1,720
19,081
9,144
4,212
3,969
963
9,937
3,988
5,948
20,801
FY14
5,460
53,029
27,371
11,734
12,542
3,095
25,658
10,593
15,065
58,645
FY15E
6,825
62,391
30,504
14,902
12,259
3,343
31,887
12,468
19,418
69,216
Source: Company, MOSL
Consistent verticals (35% mix): Momentum intact in Prefab and Textile
n
n
n
Prefab continues strong sales growth of 28% YoY (v/s 31% in 2Q), while EBITDA
margin expanded 0.5pp QoQ to 26%. Execution in education (class rooms),
healthcare and sanitations remain key drivers. Opening up of opportunities in
CSR, clean India etc offers renewed growth drivers in coming years.
Textile (Fabric) segment recorded 23%YoY growth (v/s 31% in 2Q) coupled with
3pp QoQ margin expansion to 27.9%. Deeper penetration to new and existing
customers drove the growth while enriching product portfolio, de-bottlenecking
of facilities and high utilization boost operating margins.
In tank segment, the company recorded revenue growth of 31% (11% in 2Q),
with flattish QoQ trend in margins at 11.8%
Improving verticals (45% mix): Composites - benefits new assets percolating
n
n
n
28 January 2015
Domestic composites recorded 13% YoY growth in revenue along with 1pp QoQ
uptick in margins to 19.4% on the back of foraying into value added offerings.
Synergistic benefits with global subsidiaries are gradually improving.
In overseas business, 3QFY15 witnessed a strong scale up in revenue (55% YoY)
driven by contribution from Simonin (acquired in July 2014), and steady rampup in Poschmann (Germany and Poland). Simonin is contributing mid-teen
EBITDA-based RoCE with outlook of margin improvement from 8% to 9-10%.
Management expects easing of investment in defense sector (means higher
outsourcing by OEMs), revival in economic outlook and stimulus announced by
ECB to have favorable impact on domestic and overseas composite segment.
2
Sintex Industries
Struggling verticals (10%): Weak quarter for monolithic; Outlook elusive,
yet optimistic
n
n
Monolithic segment posted ~40% YoY de-growth, along with margin contraction
of 3-3.5pp QoQ due to certain cancellations.
Current facility utilization is at 33%. Outlook remains elusive with revival
dependent on clarity on government plan of implementing mass housing
projects. FY15 revenue guidance moderated to INR6-7b (v/s INR7.5b+ earlier).
Exhibit 2: Strength of operations continues in Prefab
Revenue (INR b)
19
20
17
20
Margin (%)
23
23
27
28
24
26
Exhibit 3: Better utilizations pushes up Textile margins
Revenue (INR b)
26
20
20
20
19
Margin (%)
23
23
30
25
28
20
1.7
2.3
2.8
2.9
2.0
3.0
3.2
3.4
2.6
4.0
4.1
1.1
1.2
1.2
1.3
1.1
1.3
1.5
1.5
1.5
1.7
1.9
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
24
Source: Company, MOSL
Exhibit 4: Gradual uptick in domestic composites
Revenue (INR b)
20
18
Exhibit 5: Simonin scaled up overseas composites operations
Margin (%)
10
26
21
14
15
19
18
Source: Company, MOSL
19
Revenue (INR b)
10
19
8
7
10
Margin (%)
9
9
9
11
9
20
2.2
2.4
2.6
3.3
1.9
2.4
2.7
3.7
2.5
2.9
3.0
2.9
2.9
3.7
3.5
3.6
3.5
3.7
4.2
3.7
4.0
5.8
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
6
Source: Company, MOSL
Exhibit 6: Weakness extends for monolithic (incl EPC)
Revenue (INR b)
19
16
19
Exhibit 7: Tank segment steady
Margin (%)
19
14
Source: Company, MOSL
14
16
15
Revenue (INR b)
11
14
10
10
11
11
11
12
12
10
12
10
2.2
2.4
3.3
2.4
1.9
2.7
2.0
6.1
2.4
3.3
2.6
0.6
0.6
0.6
0.9
0.8
0.8
0.7
0.9
0.7
0.8
0.9
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
8
Margin (%)
14
Source: Company, MOSL
28 January 2015
Source: Company, MOSL
3
Sintex Industries
Other updates
n
n
n
Spinning mill will commence commercial production of first 0.1m spindles in
September 2015 with ~80% utilization, and balance 0.2m by December-15. It
expects ramp-up to full utilization by FY17. Almost 75% of sales will be
contributed by exports to China, East and Central Europe, Africa etc.
Given that Gujarat government’s favorable textile policy is applicable on
investment before December-2017, capex cycle of next phases of 0.6-0.7m
spindle may start soon after, which may result into further rise in gearing.
Almost US$55m of FCCB is converted till 3QFY15 with balance to have reduced
coupon rate of 3.75% (v/s 7.5% earlier). Probability of conversion is intact. We
expect conversion up to 75-80% by March 2015.
Revising estimates
n
n
n
28 January 2015
Cutting revenue estimates for monolithic segment by 15-20% for FY15-17E due
to delay in revival visibility.
Raising revenue estimates for overseas composites by 5-13% for FY15-17E to
factor in higher revenue contribution from Simonin.
Keeping estimates other verticals largely intact. This translates into 1-3% cut in
EBITDA estimates. However with lower tax assumption on the back of with MAT
credit to be assumed in coming quarters, we raise FY15/16/17 EPS by
6%/5%/3%.
4
Sintex Industries
Valuation and views: Business recovery cycle on track
n
n
n
n
n
n
n
n
SINT’s business cycle is favorably poised with improvement in macro outlook
and likely uptick in government and private spending in related verticals.
The company will be a major beneficiary from government’s strong focus on
wide range of infrastructure and social improvement plans viz. education,
healthcare, sanitation, housing etc.
SINT’s most consistent business segment – Prefab (20% sales mix and 27% CAGR
in FY12-15) – should accelerate further with huge potential in public and private
spending in new set of social initiatives viz. CSR, Swachh Bharat Mission etc.
Revival in mass housing projects through better clarity on government plan in
upcoming union budget should aid required drive to subdued monolithic vertical
(11% sales mix and -12% CAGR over FY12-15).
Automobile segment after a subnormal 3-4 years should witness revival in both
passenger and commercial segments. This will drive growth in domestic
composites, while overseas business (25% sales mix and 16% CAGR over FY1215) has been gradually becoming consistent with stabilization of recent
acquisitions.
Our base case revenue/EBITDA CAGR over FY15-17E is ~14%/16%, which has
upside risk from (a) new sources of revenue contribution in prefab segment (v/s
current assumption of 22% FY15-17), (b) positive surprise from revival in
monolithic business from low base (v/s current assumption of 15% FY15-17).
Spinning project to start in 1QFY16 phase wise and in optimum capacity
utilization (in FY17) will contribute INR15b+ of revenue and 23-24% EBITDA
margin.
FCCB dilution concerns remain an impediment albeit a significant conversion
(~50%) is behind with further dilution risk of ~13%.
The stock trades at 6.4x FY17E EPS, 5.1x FY17E EV/EBITDA. We value SINT at 6x
FY17E EV/EBITDA (v/s 6.5x FY16E earlier) on the back of improved business
outlook. This translates into fair value of INR155/share. However we also adjust
for potential FCCB-linked dilution to reach target price of INR149/share (31%
upside). Maintain Buy.
Exhibit 8: Trend in P/E
Exhibit 9: Trend in EV/EBITDA
P/E (x)
5 Yrs Avg(x)
32
15 Yrs Avg(x)
10 Yrs Avg(x)
EV/EBDITA(x)
Avg(x)
Min(x)
13.5
24
Peak(x)
Median(x)
10.6
10.5
16
7.9
7.6
7.1
8
6.5
7.5
10.1
5.1
4.5
4.7
2.4
Jan-15
Nov-13
Sep-12
Aug-11
Jun-10
Apr-09
Feb-08
Dec-06
Oct-05
Sep-04
Jul-03
May-02
Mar-01
Jan-15
Nov-13
Sep-12
Aug-11
Jun-10
Apr-09
Feb-08
Dec-06
Oct-05
Sep-04
Jul-03
May-02
Mar-01
Jan-00
28 January 2015
Jan-00
1.5
0
5
Sintex Industries
Exhibit 10: We estimates Consistent growth in revenue
over FY15-17 (%)…
Exhibit 11: …along with gradual improvement in margins
19%
Source :Company, MOSL
FY17E
FY16E
FY15E
17% 17% 17%
FY14
FY14
FY13
FY13
16% 16%
FY12
FY12
21
16%
FY11
FY11
18
17%
FY10
FY10
18
19%
18%
FY09
15
FY08
14
FY07
-1
FY17E
36
FY16E
7
FY15E
35
FY09
18%
Source :Company, MOSL
Exhibit 12: Sales growth (%) across segment
FY12
While Prefab is likely to
maintain healthy growth
with high government focus
on social initiatives,
additional boost will come
from (a) scale up in textile
segment, (c) recovery in
monolithic and domestic
composites, and (d)
stabilization of overseas
business
FY14
12
1515
-19
3 3
FY15E
FY16E
FY17E
29
2725
20
20
25
16
8
FY13
12 14 1010
8
21
18
1211
-11
Prefab
Monolithic
Tanks
7
-6
0
-30
Textiles
16 16
Domestic
Composites
Foreign
Composites
Source: Company, MOSL
Exhibit 13: Capex to keep FCFE negative (INR b)
Exhibit 14: Return ratios to improve FY17 onwards (%)
0.0
-1.2
-4.7 -5.2
-2.0
-5.9
-0.4
15
-6.9
-9.8
20
14
19
13
19
-10.9
15
10
16
11
21
14
10
14
11
11
11
12
11
11
13
14
Source: Company, MOSL
28 January 2015
FY17E
FY16E
FY15E
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY17E
FY16E
FY15E
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
-13.9
Source: Company, MOSL
6
Sintex Industries
Exhibit 15: Key operating matrix and assumptions
FY07
FY08
95
10
126
69
39
0
18
267
84
0
FY09
35
7
40
23
1
115
-9
59
5
113
FY10
7
-7
9
15
-16
59
15
5
15
-1
FY11
36
26
38
51
14
86
22
25
25
25
FY12
-1
8
-2
-7
12
-19
12
4
21
-6
FY13
14
0
16
11
35
-8
22
22
29
16
FY14
15
16
15
22
20
-11
14
9
0
16
FY15E
18
25
18
11
27
-30
8
24
18
29
FY16E
18
3
14
13
25
15
10
14
12
16
FY17E
21
3
8
8
20
15
10
8
11
7
19%
28.8%
16.0%
15.2%
16.7%
0.0%
9.8%
17.9%
17.9%
0.0%
18%
27.6%
16.1%
17.2%
18.6%
19.0%
9.0%
14.8%
22.2%
7.3%
17%
27.8%
15.5%
18.1%
20.1%
18.0%
9.0%
12.5%
14.8%
11.4%
16%
20.0%
15.9%
17.1%
16.6%
19.0%
10.1%
14.8%
20.2%
11.7%
18%
24.0%
17.5%
19.0%
20.5%
19.5%
11.0%
15.0%
21.0%
11.6%
16%
23.0%
15.4%
15.7%
20.0%
15.0%
10.0%
15.0%
19.2%
11.9%
16%
21.0%
15.2%
17.2%
19.0%
17.5%
10.0%
13.2%
19.0%
8.5%
17%
24.2%
16.3%
19.1%
25.4%
17.8%
11.7%
13.3%
19.5%
9.0%
17%
25.3%
15.9%
18.8%
25.5%
16.0%
11.5%
13.2%
19.1%
9.4%
17%
24.5%
16.2%
19.5%
24.0%
19.0%
11.5%
13.2%
19.3%
9.4%
19%
24.5%
17.1%
20.5%
24.0%
19.0%
11.5%
13.9%
19.8%
10.1%
Sales Mix
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign
27
73
52
41
0
11
21
21
0
15
85
45
29
9
7
40
20
20
12
88
41
22
15
5
47
15
31
11
89
44
17
22
5
46
17
29
10
90
49
14
30
4
42
15
27
11
89
46
16
24
5
44
19
25
9
91
44
19
20
5
46
21
26
9
91
47
20
15
5
44
18
26
10
90
44
22
9
5
46
18
28
9
87
42
23
9
4
44
17
27
7
78
38
23
8
4
40
16
24
EBITDA Mix
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign
40
60
41
35
0
6
19
19
0
24
76
44
30
10
3
33
25
8
20
80
44
26
16
2
34
13
21
13
87
46
17
25
3
41
20
21
13
87
51
16
32
3
34
18
17
15
85
44
20
23
3
40
22
18
12
88
49
23
22
3
39
25
14
13
87
52
30
16
4
34
21
14
15
85
49
33
9
3
36
20
16
12
83
48
32
10
3
35
19
15
10
71
41
29
9
3
30
17
13
Sales Growth (%)
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic Composites
Foreign Composites
Sales Growth
Total EBITDA Margin
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign
Source: Company, MOSL
28 January 2015
7
Sintex Industries
Corporate profile: Sintex Industries
Company description
Exhibit 18: Sensex rebased
Sintex Industries (SINT) is one of the most integrated
plastics processors in India. The key areas of
operation are Building materials (Prefab and
monolithic construction), custom moldings, storage
products and textiles. Building Materials business
caters to two kinds of low-cost construction
opportunities - (1) Housing, via monolithic
construction, and (2) Non-housing, via prefab
structures (rural classrooms and healthcare clinics,
sanitation, army barracks, worker shelters, etc). The
company will continue to benefit from the rising
trend of "plasticization", i.e. substitution of metals
by plastic composites across industries, mainly
autos, electrical, Aerospace, and healthcare,
defense, etc.
Exhibit 17: Shareholding pattern (%)
125
Sintex Inds.
Sensex - Rebased
100
75
50
25
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Exhibit 18: Top holders
Dec-14
Sep-14
Dec-13
Promoter
38.7
40.6
37.0
DII
5.1
4.3
6.9
FII
19.5
17.6
9.7
Others
36.8
37.5
46.3
Holder Name
% Holding
Government of Singapore
Goldman Sachs (Singapore) PTE
LIC of India Market Plus -1 Growth Fund
Monetary Authority of Singapore
LIC of India
4.7
2.5
1.6
1.4
1.4
Note: FII Includes depository receipts
Exhibit 19: Top management
Exhibit 20: Directors
Name
Designation
Name
Name
Dinesh B Patel
Chairman
Dinesh B Patel
Indira J Parikh*
Arun P Patel
Vice Chairman
Arun P Patel
Lavkumar Kantilal*
Amit D Patel
Managing Director
Amit D Patel
Ramnikbhai Ambani*
Rahul A Patel
Managing Director
Rahul A Patel
Ashwin Lalbhai Shah*
S B Dangayach
Managing Director
S B Dangayach
Narendra Kumar Bansal*
Rajesh B Parikh*
*Independent
Exhibit 21: Auditors
Exhibit 22: MOSL forecast v/s consensus
Name
Type
Deloitte Haskins & Sells
Kiran J Mehta & CO
V H Shah
Statutory
Cost Auditor
Cost Auditor
28 January 2015
EPS (INR)
FY15
FY16
FY17
MOSL
forecast
11.4
13.4
17.9
Consensus
forecast
10.9
14.0
18.1
Variation (%)
4.3
-4.4
-1.2
8
Sintex Industries
Financials and valuations
Income Statement
Y/E March
(INR Million)
2010
2011
2012
2013
2014
2015E
2016E
2017E
33,192
5.8
5,380
16.2
3.1
1,445
3,936
731
392
486
4,083
772
18.9
3,311
10.1
1.2
21
3,290
2,896
-6.5
44,837
35.1
8,155
18.2
51.6
1,491
6,664
1,089
455
62
6,092
1,508
24.8
4,584
10.2
38.4
-16
4,600
4,553
57.2
44,535
-0.7
7,177
16.1
-12.0
1,678
5,499
1,358
505
-466
4,179
1,160
25.0
3,019
6.8
-34.1
49
2,970
3,535
-22.4
51,079
14.7
7,695
15.1
7.2
2,054
5,641
1,726
860
-903
3,871
669
14.0
3,202
6.3
6.0
36
3,166
4,141
17.2
58,645
14.8
9,642
16.4
25.3
2,548
7,094
2,894
774
-161
4,814
1,180
23.7
3,634
6.2
13.5
13
3,621
3,808
-8.1
69,216
18.0
11,672
16.9
21.1
2,776
8,895
2,944
300
-200
6,051
1,438
23.0
4,613
6.7
26.9
15
4,598
4,828
26.8
81,974
18.4
13,925
17.0
19.3
4,011
9,914
3,176
500
-100
7,138
1,592
22.0
5,546
6.8
20.2
20
5,526
5,666
17.3
98,883
11.3
18,468
18.7
22.4
4,490
13,978
3,267
500
0
11,211
3,027
27.0
8,184
8.3
36.2
25
8,159
8,209
33.7
2010
2011
2012
2013
2014
2015E
2016E
2017E
Equity share capital
Reserves
Networth
Total Debt
Net deferred tax
Capital employed
271
19,198
19,469
26,303
1,693
47,655
271
23,745
24,016
27,736
2,057
53,808
271
26,212
26,483
30,913
2,381
59,778
311
30,656
31,250
37,139
2,878
71,267
311
34,844
35,438
40,630
3,289
79,358
423
46,417
46,840
46,306
3,289
96,435
423
51,637
52,060
48,131
3,289
103,480
423
59,500
59,923
48,131
3,289
111,343
Gross fixed assets
Less: Acc. Depn.
Net fixed assets
Goodwill
Capital WIP
Investments
25,581
7,746
17,834
2,665
1,716
2,470
33,276
9,156
24,120
2,190
714
3,775
37,266
10,863
26,403
2,179
2,531
1,423
42,326
13,332
28,995
2,157
3,597
1,303
50,323
15,879
28,403
1,865
9,000
3,058
67,763
18,656
49,107
1,865
5,000
1,058
75,763
22,667
53,096
1,865
4,000
1,058
84,763
27,157
57,606
1,865
3,000
1,058
Curr. assets
Inventory
Debtors
Cash & Bank
Loans, Adv. & Others
30,983
3,411
10,121
9,295
8,157
33,655
3,770
14,278
9,861
5,746
37,350
3,955
16,983
7,206
9,206
45,003
4,531
18,596
8,902
12,974
48,559
4,511
22,230
2,720
19,099
54,083
5,069
24,652
1,606
22,756
61,321
5,508
28,073
1,463
26,277
69,517
5,800
33,322
1,136
29,258
Current liab. & prov.
Creditors
Other Liabilities
Provisions
Net current assets
Total Assets
E: MOSL Estimates
8,015
4,029
479
3,507
22,969
47,655
10,647
6,522
499
3,626
23,009
53,809
10,108
6,514
0
3,594
27,242
59,778
9,787
8,504
0
1,284
35,216
71,268
11,528
10,005
0
1,523
37,031
79,358
14,679
12,928
0
1,751
39,405
96,435
17,861
15,847
0
2,014
43,461
103,480
21,704
19,388
0
2,316
47,814
111,343
Operating income
Change (%)
EBITDA
EBITDA Margin (%)
Change (%)
Depreciation
EBIT
Interest
Other income
Extraordinary items
PBT
Tax
Tax / PBT (%)
PAT before MI
PAT margin (%)
Change (%)
MI + Share of profit/loss
Consolidated PAT
Adj. Con. PAT
Change (%)
Balance Sheet
Y/E March
28 January 2015
9
Sintex Industries
Financials and valuations
Ratios
Y/E March
2010
2011
2012
2013
2014E
2015E
2016E
2017E
Basic (INR)
EPS
Growth (%)
Cash EPS
Book value
Divd. Per Share
Payout incl. Div. Tax (%)
10.7
-6.5
17.4
71.8
0.6
5.8
16.8
57.2
22.5
88.6
0.7
4.5
13.0
-22.4
17.5
97.7
0.7
6.7
13.3
2.1
17.0
100.4
0.7
7.8
12.2
-8.1
19.9
113.9
0.7
7.0
11.4
-6.7
17.5
110.7
0.7
7.5
13.4
17.3
22.6
123.1
0.7
7.0
17.9
33.7
27.7
141.7
0.7
7.0
8.8
6.5
1.2
1.2
7.4
0.6
8.6
6.7
1.1
1.2
8.1
0.6
9.3
5.7
1.0
1.2
7.3
0.6
10.0
6.5
1.0
1.3
7.9
0.6
8.5
5.1
0.9
1.1
6.7
0.6
6.4
4.1
0.8
1.0
5.1
0.6
Valuation (x)
P/E
Cash P/E
Price/Book value
EV/Sales
EV/EBITDA
Dividend yield (%)
Profitability ratios (%)
Average RoE
Average RoCE
15.9
10.0
20.9
14.6
14.0
11.0
14.3
10.3
11.4
10.9
11.7
10.9
11.5
10.8
13.5
12.8
Turnover ratios
Debtors (days sales)
Inventory (days sales)
111
38
116
31
139
32
133
32
138
28
130
27
125
25
123
21
Leverage ratio
Debt/Equity (x)
0.8
0.6
0.8
0.9
1.0
0.9
0.9
0.8
2010
2011
2012
2013
2014E
2015E
2016E
2017E
PBT before EO items
Add : Depn. & Amort.
Interest
Less : Direct taxes
(Inc)/Dec in WC
CF from opn. incl. EO
3,576
1,446
731
772
-7,480
-2,013
6,046
1,491
1,089
1,508
526
7,706
4,596
1,678
1,358
1,160
-6,888
-882
4,738
2,054
1,726
669
-6,278
668
4,962
2,548
2,894
1,180
-7,997
1,065
6,236
2,776
2,944
1,438
-3,487
6,831
7,218
4,011
3,176
1,592
-4,199
8,512
11,186
4,490
3,267
3,027
-4,680
11,234
(Inc)/Dec in FA
(Pur)/Sale of invts.
CF from invt. activity
FCF
Inc/(Dec) in Net Worth
Inc/(Dec) in Debt
Less : Interest paid
Divd & Divd Tax
CF from fin. activity
Inc/Dec in cash
Add: Beginning balance
Closing balance
E: MOSL Estimates
-1,663
-651
-2,315
-4,327
-680
3,339
731
191
1,938
-2,390
11,685
9,295
-6,300
-1,305
-7,605
101
153
1,432
1,089
206
464
566
9,295
9,861
-5,766
2,352
-3,414
-4,296
-297
3,178
1,358
205
1,641
-2,655
9,861
7,206
-5,690
120
-5,570
-4,902
1,855
6,226
1,726
254
6,597
1,695
7,206
8,901
-7,067
-1,755
-8,822
-7,757
821
3,492
2,894
254
1,576
-6,181
8,902
2,721
-19,481
2,000
-17,481
-10,649
7,148
5,676
2,944
345
9,536
-1,113
2,720
1,606
-7,000
0
-7,000
1,512
40
1,824
3,176
345
-1,656
-143
1,606
1,463
-8,000
0
-8,000
3,234
50
0
3,267
345
-3,560
-327
1,463
1,136
Cash Flow Statement
Y/E March
28 January 2015
(INR Million)
10
Sintex Industries
NOTES
28 January 2015
11
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12