Indian Hume Pipe Co EBITDA jumped on 44.7% in 2015 and EBITDA Margin increased slightly on 1.7 pp from 9.3% to 11.0%
28-05-2015 • About Indian Hume Pipe Co (
$INDIANHUME) • By InTwits
Indian Hume Pipe Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indian Hume Pipe Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 221 in FY2015, 909 in FY2014, 597 in FY2013, 409 in FY2012, 301 in FY2011
- The company has highly profitable business model: ROIC is at 18.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Indian Hume Pipe Co ($INDIANHUME) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,485 | 5,172 | 6,958 | 8,230 | 10,099 | 22.7% |
| EBITDA | 682 | 359 | 615 | 767 | 1,110 | 44.7% |
| Net Income | 280 | 159 | 228 | 241 | 416 | 72.8% |
Balance Sheet
|
|---|
| Cash | 264 | 213 | 174 | 124 | 221 | 78.2% |
| Short Term Debt | 1,829 | 1,485 | 1,764 | 2,175 | 2,849 | 31.0% |
| Long Term Debt | 7 | 0 | 0 | 281 | 206 | -26.7% |
Cash flow
|
|---|
| Capex | 145 | 98 | 142 | 130 | 75 | -41.9% |
Ratios
|
|---|
| Revenue growth | -43.1% | -20.3% | 34.5% | 18.3% | 22.7% | |
| EBITDA growth | -12.9% | -47.3% | 71.2% | 24.6% | 44.7% | |
| EBITDA Margin | 10.5% | 7.0% | 8.8% | 9.3% | 11.0% | 1.7% |
| Net Income Margin | 4.3% | 3.1% | 3.3% | 2.9% | 4.1% | 1.2% |
| CAPEX, % of revenue | 2.2% | 1.9% | 2.0% | 1.6% | 0.7% | -0.8% |
| ROIC | 15.5% | 7.6% | 13.8% | 15.0% | 18.0% | 3.0% |
| ROE | 14.1% | 7.4% | 10.0% | 9.8% | 15.4% | 5.6% |
| Net Debt/EBITDA | 2.3x | 3.5x | 2.6x | 3.0x | 2.6x | -0.5x |
Revenue and profitability
Indian Hume Pipe Co's Revenue surged on 22.7% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 9.3% to 11.0% in FY2015.
Net Income marign increased slightly on 1.2 pp from 2.9% to 4.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.75% in FY2015. The company showed small CAPEX/Revenue decline of 1.2 pp from 1.9% in FY2012 to 0.75% in FY2015. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at good ROIC (18.04%) and ROE (15.36%). ROIC increased on 3.0 pp from 15.0% to 18.0% in FY2015. ROE increased on 5.6 pp from 9.8% to 15.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 0.5x from 3.0x to 2.6x in FY2015. Debt surged on 24.4% in FY2015 while cash jumped on 78.2% in FY2015.
Valuation
Indian Hume Pipe Co's trades at EV/EBITDA 9.1x and P/E 17.5x while industy averages are 10.5x and 26.1x. Indian Hume Pipe Co's EV/(EBITDA-CAPEX) is 9.8x with the industry average at 4.7x.
Appendix 1: Peers in Cement & Cement Products
Below you can find Indian Hume Pipe Co benchmarking vs. other companies in Cement & Cement Products 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.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heidelbergcement India ($HEIDELBERG) | | -13.1% | 37.5% | 36.3% | 2.5% |
| Shree Digvijay Cement Co ($SHREDIGCEM) | -23.4% | 14.9% | -13.5% | 24.7% | |
| 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 ($KAKATCEM) | | 67.8% | 9.0% | 8.8% | -3.9% |
| |
|---|
| Median (15 companies) | -29.5% | 14.9% | 11.4% | -1.4% | 6.4% |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | | -20.3% | 34.5% | 18.3% | 22.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambuja Cements ($AMBUJACEM) | 23.4% | 25.6% | 18.2% | 19.4% | |
| Heidelbergcement India ($HEIDELBERG) | 6.9% | 8.3% | 9.3% | 15.9% | 7.4% |
| Deccan Cements ($DECCANCE) | 19.2% | 22.8% | 13.2% | 14.7% | |
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | |
| J.K.Cement ($JKCEMENT) | 13.3% | 20.3% | 19.2% | 12.7% | 13.4% |
| |
|---|
| Median (14 companies) | 13.3% | 19.2% | 13.6% | 11.8% | 9.5% |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 10.5% | 7.0% | 8.8% | 9.3% | 11.0% |
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 ($SHREDIGCEM) | 13.6% | 4.1% | 8.5% | 8.5% | |
| |
|---|
| Median (11 companies) | 9.0% | 6.5% | 7.8% | 8.3% | 5.2% |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 2.2% | 1.9% | 2.0% | 1.6% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Deccan Cements ($DECCANCE) | 7.6% | 17.4% | 8.0% | 6.4% | |
| |
|---|
| Median (16 companies) | 7.6% | 15.8% | 8.2% | 6.4% | 7.3% |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | 18.0% |
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 ($KCP) | 2.6x | 1.1x | 3.0x | 3.6x | 2.3x |
| |
|---|
| Median (13 companies) | 2.9x | 1.8x | 2.9x | 3.2x | 4.3x |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 2.3x | 3.5x | 2.6x | 3.0x | 2.6x |
