Hindustan Zinc Net Income jumped on 18.4% in 2015 and Revenue increased on 8.4%
20-04-2015 • About Hindustan Zinc (
$HINDZINC) • By InTwits
Hindustan Zinc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hindustan Zinc has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's a lot of higher than industry average of 11.1%.
- CAPEX is quite volatile: 55,744 in FY2015, 28,733 in FY2014, 16,313 in FY2013, 29,558 in FY2012, 25,648 in FY2011
- The company has highly profitable business model: ROIC is at 16.0%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hindustan Zinc ($HINDZINC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 99,121 | 112,551 | 125,257 | 134,590 | 145,887 | 8.4% |
| EBITDA | 56,080 | 60,697 | 64,818 | 69,617 | 74,687 | 7.3% |
| Net Income | 49,005 | 55,260 | 68,995 | 69,046 | 81,780 | 18.4% |
Balance Sheet
|
|---|
| Cash | 5,779 | 42,053 | 37,418 | 30,312 | 35,312 | 16.5% |
| Short Term Debt | 4 | 4 | 4 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 14,476 | 16,719 | 17,558 | 18,131 | 16,174 | -10.8% |
Ratios
|
|---|
| Revenue growth | -52.9% | 13.5% | 11.3% | 7.5% | 8.4% | |
| EBITDA growth | 17.1% | 8.2% | 6.8% | 7.4% | 7.3% | |
| EBITDA Margin | 56.6% | 53.9% | 51.7% | 51.7% | 51.2% | -0.5% |
| Net Income Margin | 49.4% | 49.1% | 55.1% | 51.3% | 56.1% | 4.8% |
| CAPEX, % of revenue | 14.6% | 14.9% | 14.0% | 13.5% | 11.1% | -2.4% |
| ROIC | 24.2% | 21.2% | 18.9% | 17.0% | 16.0% | -0.9% |
| ROE | 24.1% | 22.4% | 23.3% | 19.8% | 20.2% | 0.4% |
| Net Debt/EBITDA | -0.1x | -0.7x | -0.6x | -0.4x | -0.5x | -0.0x |
Revenue and profitability
Hindustan Zinc's Revenue increased on 8.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 0.83% to 4.0% in FY2015.
Net Income marign increased on 4.8 pp from 51.3% to 56.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Hindustan Zinc had CAPEX/Revenue of 11.1%. The company's CAPEX/Revenue decreased on 3.8 pp from 14.9% in FY2012 to 11.1% in FY2015. Average CAPEX/Revenue for the last three years was 12.9%.
Return on investment
The company operates at high and attractive ROE (20.25%) while ROIC is a bit lower (16.04%). ROIC decreased slightly on 0.93 pp from 17.0% to 16.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 16.5% in FY2015.
Valuation
The company's trades at EV/EBITDA 7.8x and P/E 7.6x while industy averages are 10.5x and 26.1x. Hindustan Zinc's EV/(EBITDA-CAPEX) is 10.0x with the industry average at 4.7x.
Appendix 1: Peers in Zinc
Below you can find Hindustan Zinc benchmarking vs. other companies in Zinc 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.
