Heidelbergcement India reports 52.5% EBITDA decline while 2.5% Revenue growth
25-05-2015 • About Heidelbergcement India (
$HEIDELBERG) • By InTwits
Heidelbergcement India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.4% in FY2015, 15.9% in FY2014, 9.3% in FY2013, 8.3% in FY2012, 6.9% in FY2011
- It operates with high leverage: Net Debt/EBITDA is 10.4x while industry average is 4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Heidelbergcement India ($HEIDELBERG) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,880 | 8,585 | 11,805 | 16,093 | 16,492 | 2.5% |
| EBITDA | 677 | 710 | 1,098 | 2,551 | 1,213 | -52.5% |
| Net Income | 292 | 308 | -407 | 514 | 117 | -77.3% |
Balance Sheet
|
|---|
| Cash | 195 | 365 | 201 | | 319 | |
| Short Term Debt | 29 | 450 | 642 | | 3,738 | |
| Long Term Debt | 7,769 | 9,858 | 12,926 | | 9,249 | |
Cash flow
|
|---|
| Capex | 6,622 | 4,425 | 2,269 | | | |
Ratios
|
|---|
| Revenue growth | -50.1% | -13.1% | 37.5% | 36.3% | 2.5% | |
| EBITDA growth | -34.7% | 4.8% | 54.8% | 132.3% | -52.5% | |
| EBITDA Margin | 6.9% | 8.3% | 9.3% | 15.9% | 7.4% | -8.5% |
| Net Income Margin | 3.0% | 3.6% | -3.5% | 3.2% | 0.7% | -2.5% |
| CAPEX, % of revenue | 67.0% | 51.5% | 19.2% | | | 0.0% |
| ROIC | 3.0% | 2.2% | 0.6% | | | 0.0% |
| ROE | 3.6% | 3.7% | -4.8% | | | 0.0% |
| Net Debt/EBITDA | 11.2x | 14.0x | 12.2x | 0.0x | 10.4x | 10.4x |
Revenue and profitability
Heidelbergcement India's Revenue increased on 2.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 20.4 pp from 58.3% to 78.8% in FY2015.
Net Income marign decreased on 2.5 pp from 3.2% to 0.71% in FY2015.
Leverage (Debt)
Debt level is 10.4x Net Debt / EBITDA and 10.7x Debt / EBITDA. Net Debt / EBITDA jumped10.4x from 0x to 10.4x in FY2015. Debt surged while cash jumped.
Appendix 1: Peers in Cement & Cement Products
Below we provide Heidelbergcement India benchmarking against other companies in Cement & Cement Products 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 |
|---|
| Shree Digvijay Cement Co ($SHREDIGCEM) | -23.4% | 14.9% | -13.5% | 24.7% | |
| Indian Hume Pipe Co ($INDIANHUME) | -43.1% | -20.3% | 34.5% | 18.3% | |
| Birla Corporation ($BIRLACORPN) | | 6.2% | 13.8% | 15.9% | 6.4% |
| Ambuja Cements ($AMBUJACEM) | -23.0% | 14.3% | -6.5% | 9.0% | |
| Kakatiya Cement Sugar & Industries ($KAKATCEM) | -55.2% | 67.8% | 9.0% | 8.8% | |
| |
|---|
| Median (15 companies) | -37.1% | 14.9% | 11.4% | -1.4% | 12.4% |
|---|
| Heidelbergcement India ($HEIDELBERG) | | -13.1% | 37.5% | 36.3% | 2.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambuja Cements ($AMBUJACEM) | 23.4% | 25.6% | 18.2% | 19.4% | |
| Deccan Cements ($DECCANCE) | 19.2% | 22.8% | 13.2% | 14.7% | |
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | |
| J.K.Cement ($JKCEMENT) | 13.3% | 20.3% | 19.2% | 12.7% | 13.4% |
| India Cements ($INDIACEM) | 13.3% | 20.6% | 18.4% | 12.4% | |
| |
|---|
| Median (14 companies) | 13.3% | 19.2% | 13.6% | 10.6% | 9.6% |
|---|
| Heidelbergcement India ($HEIDELBERG) | 6.9% | 8.3% | 9.3% | 15.9% | 7.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| J.K.Cement ($JKCEMENT) | 14.1% | 6.5% | 18.8% | 55.8% | 16.2% |
| Acc ($ACC) | 4.8% | 5.0% | 8.6% | 13.7% | |
| K.C.P ($KCP) | 28.2% | 8.6% | 9.9% | 12.6% | 5.2% |
| Visaka Industries ($VIKASAS) | 4.6% | 5.5% | 6.5% | 10.2% | 2.2% |
| Shree Digvijay Cement Co ($SHREDIGCEM) | 13.6% | 4.1% | 8.5% | 8.5% | |
| |
|---|
| Median (12 companies) | 7.7% | 5.5% | 7.1% | 6.9% | 5.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | |
| Saurashtra Cement ($SAURASHCEM) | 4.3% | 38.6% | 42.7% | 13.9% | 26.9% |
| Ambuja Cements ($AMBUJACEM) | 17.0% | 19.4% | 11.2% | 13.0% | |
| Acc ($ACC) | 18.5% | 20.2% | 12.7% | 11.0% | |
| K.C.P ($KCP) | 14.9% | 17.6% | 6.7% | 7.1% | 9.3% |
| |
|---|
| Median (16 companies) | 10.2% | 15.8% | 9.8% | 6.4% | 7.3% |
|---|
| Heidelbergcement India ($HEIDELBERG) | 3.0% | 2.2% | 0.6% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prism Cement ($PRISMCEM) | 3.4x | 4.8x | 6.0x | 10.0x | 6.0x |
| J.K.Cement ($JKCEMENT) | 4.5x | 2.3x | 2.3x | 6.9x | 5.8x |
| India Cements ($INDIACEM) | 4.8x | 3.2x | 3.5x | 5.5x | |
| Visaka Industries ($VIKASAS) | 1.3x | 1.3x | 2.2x | 3.8x | 2.7x |
| K.C.P ($KCP) | 2.6x | 1.1x | 3.0x | 3.6x | 2.3x |
| |
|---|
| Median (13 companies) | 2.4x | 1.8x | 2.6x | 3.2x | 2.7x |
|---|
| Heidelbergcement India ($HEIDELBERG) | 11.2x | 14.0x | 12.2x | 0.0x | 10.4x |
