Hitachi Home And Life Solutions (India) EBITDA jumped on 131% in 2015 and Revenue surged on 43.0%
29-05-2015 • About Hitachi Home And Life Solutions (India) (
$HITACHIHOM) • By InTwits
Hitachi Home And Life Solutions (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hitachi Home And Life Solutions (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 658 in FY2015, 417 in FY2014, 1,115 in FY2013, 171 in FY2012, 389 in FY2011
- The company has highly profitable business model: ROIC is at 25.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hitachi Home And Life Solutions (India) ($HITACHIHOM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,640 | 7,981 | 9,300 | 10,997 | 15,728 | 43.0% |
| EBITDA | 587 | 347 | 498 | 611 | 1,413 | 131.3% |
| Net Income | 293 | 33 | 153 | 80 | 778 | 866.1% |
Balance Sheet
|
|---|
| Cash | 15 | 22 | 709 | 14 | 51 | 273.7% |
| Short Term Debt | 650 | 703 | 839 | 973 | 1,119 | 15.0% |
| Long Term Debt | 250 | 0 | 552 | 276 | 276 | 0.0% |
Cash flow
|
|---|
| Capex | 389 | 171 | 1,115 | 417 | 658 | 57.7% |
Ratios
|
|---|
| Revenue growth | -60.0% | 4.5% | 16.5% | 18.3% | 43.0% | |
| EBITDA growth | -3.5% | -40.9% | 43.5% | 22.7% | 131.3% | |
| EBITDA Margin | 7.7% | 4.3% | 5.4% | 5.6% | 9.0% | 3.4% |
| Net Income Margin | 3.8% | 0.4% | 1.6% | 0.7% | 4.9% | 4.2% |
| CAPEX, % of revenue | 5.1% | 2.1% | 12.0% | 3.8% | 4.2% | 0.4% |
| ROIC | 16.5% | 6.5% | 9.6% | 8.4% | 25.6% | 17.2% |
| ROE | 18.4% | 1.9% | 7.5% | 3.4% | 28.1% | 24.7% |
| Net Debt/EBITDA | 1.5x | 2.0x | 1.4x | 2.0x | 1.0x | -1.1x |
Revenue and profitability
Hitachi Home And Life Solutions (India)'s Revenue jumped on 43.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.4 pp from 20.4% to 8.1% in FY2015.
Net Income marign increased on 4.2 pp from 0.73% to 4.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Hitachi Home And Life Solutions (India) had CAPEX/Revenue of 4.2%. The company's CAPEX/Revenue increased on 2.0 pp from 2.1% in FY2012 to 4.2% in FY2015. It's average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at high and attractive ROIC (25.60%) and ROE (28.13%). ROIC jumped on 17.2 pp from 8.4% to 25.6% in FY2015. ROE surged on 24.7 pp from 3.4% to 28.1% in FY2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 2.0x to 1.0x in FY2015. Debt jumped on 11.7% in FY2015 while cash jumped on 274% in FY2015.
Appendix 1: Peers in Consumer Electronics
Below you can find Hitachi Home And Life Solutions (India) benchmarking vs. other companies in Consumer Electronics 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sharp India ($SHARP) | | -25.1% | -7.4% | 98.9% | 22.2% |
| Whirlpool Of India ($WHIRLPOOL) | | -1.7% | 4.3% | 2.2% | 16.2% |
| Blue Star ($BLUESTARCO) | | -5.5% | 3.9% | 1.3% | 8.4% |
| Mirc Electronics ($MIRCELECTR) | | -13.8% | -21.4% | -0.9% | -17.7% |
| |
|---|
| Median (4 companies) | | -9.7% | -1.7% | 1.8% | 12.3% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | | 4.5% | 16.5% | 18.3% | 43.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 10.3% | 8.9% | 8.4% | 7.9% | 10.1% |
| Sharp India ($SHARP) | 4.0% | 7.2% | 4.8% | 6.3% | 5.7% |
| Blue Star ($BLUESTARCO) | 8.7% | -0.8% | 3.1% | 5.4% | 5.5% |
| Mirc Electronics ($MIRCELECTR) | 4.0% | 1.4% | -0.0% | 0.5% | 4.1% |
| Vxl Instruments ($VXLINSTR) | | | | | 0.4% |
| |
|---|
| Median (5 companies) | 6.4% | 4.3% | 4.0% | 5.8% | 5.5% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 7.7% | 4.3% | 5.4% | 5.6% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 2.7% | 4.5% | 3.0% | 3.0% | 2.6% |
| Blue Star ($BLUESTARCO) | 1.8% | 1.9% | 1.0% | 1.4% | 1.9% |
| Mirc Electronics ($MIRCELECTR) | 0.8% | 0.7% | 1.3% | 0.6% | 0.0% |
| |
|---|
| Median (3 companies) | 2.3% | 3.2% | 1.3% | 1.4% | 1.9% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 5.1% | 2.1% | 12.0% | 3.8% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 43.8% | 34.9% | 27.0% | 21.1% | 29.3% |
| Blue Star ($BLUESTARCO) | | -6.1% | 6.9% | 12.6% | 13.4% |
| Mirc Electronics ($MIRCELECTR) | 9.3% | -0.0% | -4.0% | -2.2% | 7.3% |
| Vxl Instruments ($VXLINSTR) | 10.2% | 13.7% | 4.5% | | |
| Sharp India ($SHARP) | 4.6% | 7.9% | -4.1% | | |
| |
|---|
| Median (5 companies) | 9.8% | 7.9% | 0.2% | 12.6% | 13.4% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 16.5% | 6.5% | 9.6% | 8.4% | 25.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mirc Electronics ($MIRCELECTR) | 4.6x | 5.8x | | 45.1x | 4.9x |
| Blue Star ($BLUESTARCO) | 1.6x | | 4.5x | 2.7x | 2.0x |
| Sharp India ($SHARP) | 0.8x | 1.2x | 0.4x | 0.0x | 0.6x |
| Vxl Instruments ($VXLINSTR) | 5.0x | 1.2x | 3.9x | | 0.0x |
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.2x | -0.7x | -1.3x | -1.6x |
| |
|---|
| Median (5 companies) | 1.6x | 1.2x | 3.9x | 1.4x | 0.6x |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 1.5x | 2.0x | 1.4x | 2.0x | 1.0x |
