Nhpc reports 104% Net Income growth and 11.2% Revenue growth
29-05-2015 • About Nhpc (
$NHPC) • By InTwits
Nhpc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nhpc has high CAPEX intensity: 5 year average CAPEX/Revenue was 40.4%. At the same time it's in pair with industry average of 46.9%.
- CAPEX is quite volatile: 4,488 in FY2015, 9,924 in FY2014, 5,139 in FY2013, 6,186 in FY2012, 4,022 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nhpc ($NHPC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 51,437 | 72,181 | 64,062 | 74,159 | 82,441 | 11.2% |
| SG&A | | | 11,817 | 19,001 | 18,152 | -4.5% |
| EBITDA | 35,821 | 51,551 | 42,579 | 43,987 | 52,242 | 18.8% |
| Net Income | 23,162 | 30,856 | 26,174 | 12,188 | 24,914 | 104.4% |
Balance Sheet
|
|---|
| Cash | 13,371 | 10,215 | 79,725 | 61,023 | 69,352 | 13.6% |
| Short Term Debt | 11,480 | 16,496 | 15,344 | 15,104 | 18,600 | 23.1% |
| Long Term Debt | 156,236 | 179,126 | 188,059 | 193,090 | 187,245 | -3.0% |
Cash flow
|
|---|
| Capex | 34,659 | 32,979 | 23,989 | 22,499 | 17,260 | -23.3% |
Ratios
|
|---|
| Revenue growth | -47.2% | 40.3% | -11.2% | 15.8% | 11.2% | |
| EBITDA growth | -16.3% | 43.9% | -17.4% | 3.3% | 18.8% | |
| EBITDA Margin | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% | 4.1% |
| Net Income Margin | 45.0% | 42.7% | 40.9% | 16.4% | 30.2% | 13.8% |
| SG&A, % of revenue | | | 18.4% | 25.6% | 22.0% | -3.6% |
| CAPEX, % of revenue | 67.4% | 45.7% | 37.4% | 30.3% | 20.9% | -9.4% |
| ROIC | 5.6% | 8.3% | 5.5% | 4.8% | 6.0% | 1.2% |
| ROE | 9.0% | 11.2% | 9.0% | 4.2% | 8.4% | 4.2% |
| Net Debt/EBITDA | 4.3x | 3.6x | 2.9x | 3.3x | 2.6x | -0.7x |
Revenue and profitability
Nhpc's Revenue surged on 11.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.1 pp from 59.3% to 63.4% in FY2015.
SG&A as a % of Revenue decreased on 3.6 pp from 25.6% to 22.0% in FY2015.
Net Income marign surged on 13.8 pp from 16.4% to 30.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Nhpc had CAPEX/Revenue of 20.9%. Nhpc's CAPEX/Revenue dropped on 24.8 pp from 45.7% in FY2012 to 20.9% in FY2015. For the last three years the average CAPEX/Revenue was 29.6%.
Return on investment
The company operates at low ROIC (6.01%) and ROE (8.44%). ROIC increased slightly on 1.2 pp from 4.8% to 6.0% in FY2015. ROE increased on 4.2 pp from 4.2% to 8.4% in FY2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 3.3x to 2.6x in FY2015. Debt decreased slightly on 1.1% in FY2015 while cash surged on 13.6% in FY2015.
Valuation
Nhpc's trades at EV/EBITDA 6.9x and P/E 9.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 10.3x with the industry average at 4.7x.
Appendix 1: Peers in Electric Utilities
Below we provide Nhpc benchmarking against other companies in Electric Utilities 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 |
|---|
| Adani Power ($ADANIPOWER) | | 91.5% | 65.7% | 128.0% | 21.7% |
| Nava Bharat Ventures ($NBVENTURES) | | -10.4% | 15.3% | 51.6% | 6.1% |
| Ptc India ($PTC) | | -12.1% | 14.2% | 31.5% | 14.9% |
| Bf Utilities ($BFUTILITIE) | -79.1% | 41.4% | 9.2% | 20.6% | |
| Power Grid Corporation Of India ($POWERGRID) | -63.7% | 19.7% | 27.2% | 18.9% | |
| |
|---|
| Median (16 companies) | -63.1% | 30.1% | 15.3% | 8.4% | 5.5% |
|---|
| Nhpc ($NHPC) | | 40.3% | -11.2% | 15.8% | 11.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 85.4% | 83.7% | 85.6% | 84.9% | |
| Bf Utilities ($BFUTILITIE) | 36.4% | 43.9% | 55.1% | 61.2% | |
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | |
| Orient Green Power Company ($GREENPOWER) | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% |
| Gvk Power & Infrastructure ($GVKPIL) | 27.4% | 28.3% | 27.4% | 37.2% | 38.2% |
| |
|---|
| Median (17 companies) | 27.9% | 24.4% | 24.7% | 25.0% | 19.6% |
|---|
| Nhpc ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | |
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | |
| Gvk Power & Infrastructure ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| Orient Green Power Company ($GREENPOWER) | 340.9% | 422.5% | 170.0% | 77.0% | 19.3% |
| Nava Bharat Ventures ($NBVENTURES) | 39.1% | 69.0% | 30.5% | 70.6% | 55.3% |
| |
|---|
| Median (15 companies) | 76.3% | 104.0% | 46.8% | 39.9% | 16.3% |
|---|
| Nhpc ($NHPC) | 67.4% | 45.7% | 37.4% | 30.3% | 20.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom T&D India ($ALSTOMT&D) | 11.2% | 0.0% | 15.7% | 14.6% | 16.1% |
| Ptc India ($PTC) | 8.1% | 11.2% | 10.4% | 13.6% | 12.3% |
| Nava Bharat Ventures ($NBVENTURES) | 11.7% | 5.3% | 6.3% | 9.2% | 5.2% |
| Ntpc ($NTPC) | 8.7% | 9.0% | 9.6% | 9.1% | 6.3% |
| Tata Power Co ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| |
|---|
| Median (19 companies) | 4.2% | 4.8% | 5.6% | 5.5% | 6.5% |
|---|
| Nhpc ($NHPC) | 5.6% | 8.3% | 5.5% | 4.8% | 6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | |
| Gvk Power & Infrastructure ($GVKPIL) | 9.6x | 19.1x | 23.9x | 20.1x | 20.2x |
| Lanco Infratech ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | |
| Gmr Infrastructure ($GMRINFRA) | 7.9x | 19.5x | 15.1x | 16.7x | |
| |
|---|
| Median (19 companies) | 7.9x | 11.3x | 8.6x | 6.6x | 5.4x |
|---|
| Nhpc ($NHPC) | 4.3x | 3.6x | 2.9x | 3.3x | 2.6x |
