Hinduja Ventures reports 301,200% Net Income growth and 81.8% Revenue growth
24-04-2015 • About Hinduja Ventures (
$HINDUJAVEN) • By InTwits
Hinduja Ventures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 54.7% in FY2015, 18.2% in FY2014, 21.0% in FY2013, 27.7% in FY2012, 22.5% in FY2011
- Hinduja Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.5%. At the same time it's in pair with industry average of 20.6%.
- CAPEX is quite volatile: 988 in FY2015, 1,091 in FY2014, 3,889 in FY2013, 522 in FY2012, 314 in FY2011
- The company has highly profitable business model: ROIC is at 39.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hinduja Ventures ($HINDUJAVEN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,573 | 4,489 | 5,914 | 7,666 | 13,935 | 81.8% |
| EBITDA | 803 | 1,245 | 1,245 | 1,395 | 7,623 | 446.3% |
| Net Income | 866 | 1,005 | 802 | 2 | 6,053 | 301,200.1% |
Balance Sheet
|
|---|
| Cash | 437 | 351 | 485 | 561 | 842 | 50.2% |
| Short Term Debt | 304 | 679 | 1,483 | 2,149 | 1,450 | -32.5% |
| Long Term Debt | 791 | 598 | 6,389 | 6,292 | 7,484 | 18.9% |
Cash flow
|
|---|
| Capex | 314 | 522 | 3,889 | 1,091 | 988 | -9.5% |
Ratios
|
|---|
| Revenue growth | -78.3% | 25.6% | 31.8% | 29.6% | 81.8% | |
| EBITDA growth | 48.8% | 55.0% | -0.0% | 12.1% | 446.3% | |
| EBITDA Margin | 22.5% | 27.7% | 21.0% | 18.2% | 54.7% | 36.5% |
| Net Income Margin | 24.2% | 22.4% | 13.6% | 0.0% | 43.4% | 43.4% |
| CAPEX, % of revenue | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% | -7.1% |
| ROIC | 5.6% | 8.3% | 4.0% | 1.0% | 39.5% | 38.5% |
| ROE | 13.4% | 14.3% | 10.3% | 0.0% | 78.3% | 78.3% |
| Net Debt/EBITDA | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x | -4.6x |
Revenue and profitability
The company's Revenue surged on 81.8% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign surged on 43.4 pp from 0.026% to 43.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 7.1%. The company showed decline in CAPEX/Revenue of 4.5 pp from 11.6% in FY2012 to 7.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 29.0%.
Return on investment
The company operates at high and attractive ROIC (39.45%) and ROE (78.29%). ROIC surged on 38.5 pp from 1.0% to 39.5% in FY2015. ROE surged on 78.3 pp from 0.025% to 78.3% in FY2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 4.6x from 5.6x to 1.1x in FY2015. Debt increased on 5.8% in FY2015 while cash surged on 50.2% in FY2015.
Appendix 1: Peers in Broadcasting & Cable TV
Below we provide Hinduja Ventures benchmarking against other companies in Broadcasting & Cable TV 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Balaji Telefilms ($BALAJITELE) | -53.5% | -2.3% | -1.0% | 119.1% | |
| Siti Cable Network ($SITICABLE) | -71.5% | 12.0% | 37.0% | 41.6% | |
| Den Networks ($DEN) | -22.4% | 10.0% | -21.7% | 24.8% | |
| B.A.G.Films & Media ($BAGFILMS) | -49.9% | 55.3% | 0.5% | 22.9% | |
| Zee Entertainment Enterprises ($ZEEL) | -48.4% | 0.6% | 21.7% | 18.6% | |
| |
|---|
| Median (9 companies) | -51.7% | 10.6% | 9.2% | 18.6% | 17.8% |
|---|
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | |
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | |
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | |
| Den Networks ($DEN) | 13.2% | 7.3% | 22.5% | 24.8% | |
| Siti Cable Network ($SITICABLE) | 3.7% | 1.6% | 17.5% | 19.9% | |
| |
|---|
| Median (9 companies) | 13.2% | 7.3% | 17.5% | 19.9% | 11.0% |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 22.5% | 27.7% | 21.0% | 18.2% | 54.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | 10.2% | 10.6% | 80.9% | 73.0% | |
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | |
| Zee Media Corporation ($ZEEMEDIA) | 3.8% | 3.4% | 5.9% | 31.6% | |
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | |
| Zee Entertainment Enterprises ($ZEEL) | 1.3% | 2.7% | 2.0% | 3.4% | |
| |
|---|
| Median (8 companies) | 6.7% | 3.5% | 4.1% | 7.7% | 4.1% |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | |
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | |
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | |
| Den Networks ($DEN) | 9.2% | 2.7% | 8.1% | 5.6% | |
| |
|---|
| Median (12 companies) | -1.3% | 0.7% | 3.3% | 5.4% | 5.3% |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 5.6% | 8.3% | 4.0% | 1.0% | 39.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | 23.2x | 56.0x | 9.5x | 5.6x | |
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | |
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | |
| Raj Television Network ($RAJTV) | | 0.6x | 0.7x | 1.6x | |
| |
|---|
| Median (9 companies) | -0.1x | -0.4x | 1.5x | 1.6x | 1.3x |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
