Jindal Worldwide reports 39.4% CAPEX decline while 7.7% Revenue growth
31-05-2015 • About Jindal Worldwide (
$JINDWORLD) • By InTwits
Jindal Worldwide reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jindal Worldwide has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's in pair with industry average of 8.3%.
- CAPEX is quite volatile: 978 in FY2015, 1,614 in FY2014, 633 in FY2013, 149 in FY2012, 135 in FY2011
- The company has business model with average profitability: ROIC is at 11.0%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jindal Worldwide ($JINDWORLD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,717 | 5,030 | 6,059 | 7,804 | 8,401 | 7.7% |
| EBITDA | 357 | 379 | 463 | 700 | 877 | 25.1% |
| Net Income | 133 | 151 | 136 | 254 | 267 | 4.9% |
Balance Sheet
|
|---|
| Cash | 190 | 290 | 272 | 118 | 343 | 189.5% |
| Short Term Debt | 605 | 754 | 768 | 1,121 | 1,307 | 16.6% |
| Long Term Debt | 492 | 401 | 809 | 1,979 | 2,183 | 10.3% |
Cash flow
|
|---|
| Capex | 135 | 149 | 633 | 1,614 | 978 | -39.4% |
Ratios
|
|---|
| Revenue growth | -63.0% | 35.3% | 20.5% | 28.8% | 7.7% | |
| EBITDA growth | 74.4% | 6.4% | 22.1% | 51.2% | 25.1% | |
| EBITDA Margin | 9.6% | 7.5% | 7.6% | 9.0% | 10.4% | 1.5% |
| Net Income Margin | 3.6% | 3.0% | 2.2% | 3.3% | 3.2% | -0.1% |
| CAPEX, % of revenue | 3.6% | 3.0% | 10.5% | 20.7% | 11.6% | -9.0% |
| ROIC | 15.6% | 14.5% | 15.2% | 13.7% | 11.0% | -2.7% |
| ROE | 16.4% | 16.2% | 12.6% | 20.0% | 17.1% | -2.9% |
| Net Debt/EBITDA | 2.5x | 2.3x | 2.8x | 4.3x | 3.6x | -0.7x |
Revenue and profitability
Jindal Worldwide's Revenue increased on 7.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.8 pp from 14.5% to 10.7% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 11.6%. The company's CAPEX/Revenue increased on 8.7 pp from 3.0% in FY2012 to 11.6% in FY2015. It's average level of CAPEX/Revenue for the last three years was 14.3%.Jindal Worldwide investments to CAPEX were large: 112% of EBITDA.
Return on investment
The company operates at good ROE (17.09%) while ROIC is low (10.99%). ROIC decreased on 2.7 pp from 13.7% to 11.0% in FY2015. ROE decreased on 2.9 pp from 20.0% to 17.1% in FY2015.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 4.3x to 3.6x in FY2015. Debt surged on 12.6% in FY2015 while cash jumped on 189% in FY2015.
Appendix 1: Peers in Textiles
Below you can find Jindal Worldwide benchmarking vs. other companies in Textiles 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 |
|---|
| Shri Dinesh Mills ($SHRIDINE) | | 5.0% | 5.1% | -76.5% | 304.9% |
| Santaram Spinners ($SANTASPN) | | 6.0% | 60.7% | -40.9% | 112.0% |
| Asahi Industries ($ASAHIIND) | | 36.2% | 23.0% | 24.4% | 103.9% |
| Blue Chip Tex Industries ($BLUECHIPT) | | 303.8% | 12.9% | 29.9% | 56.1% |
| Jaybharat Textiles & Real Estate ($JAYTEX) | | 17.2% | -26.3% | 0.4% | 38.0% |
| |
|---|
| Median (71 companies) | -41.1% | 4.8% | 9.3% | 14.2% | -0.5% |
|---|
| Jindal Worldwide ($JINDWORLD) | | 35.3% | 20.5% | 28.8% | 7.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sil Investments ($SILINV) | | | | | 93.8% |
| Swadeshi Polytex ($SWADPOL) | | | | | 64.4% |
| Binny ($BINNY) | | | | | 60.9% |
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% |
| Premier Synthetics ($PREMSYN) | | | | | 25.9% |
| |
|---|
| Median (77 companies) | 12.9% | 6.3% | 9.5% | 10.1% | 8.0% |
|---|
| Jindal Worldwide ($JINDWORLD) | 9.6% | 7.5% | 7.6% | 9.0% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 0.2% | 1.9% | 2.6% | 8.0% | 42.3% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 2.4% | 18.6% | 24.1% | 6.8% | 16.8% |
| SRF ($SRF) | 0.0% | 0.0% | 18.7% | 20.0% | 11.4% |
| Welspun India ($WELSPUNIND) | 11.3% | 5.6% | 7.8% | 16.4% | 10.9% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 2.3% | 3.4% | 1.8% | 5.6% | 10.7% |
| |
|---|
| Median (20 companies) | 4.5% | 3.4% | 5.3% | 6.7% | 6.3% |
|---|
| Jindal Worldwide ($JINDWORLD) | 3.6% | 3.0% | 10.5% | 20.7% | 11.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Welspun India ($WELSPUNIND) | 5.1% | 9.3% | 15.6% | 8.5% | 21.9% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 9.9% | -0.5% | 9.2% | 8.3% | 20.4% |
| Nitin Spinners ($NITINSPIN) | 13.8% | 6.0% | 19.5% | 21.5% | 17.5% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 16.0% | 9.5% | 13.6% | 19.8% | 14.6% |
| Arvind ($ARVIND) | 9.9% | 11.3% | 11.2% | 13.7% | 13.2% |
| |
|---|
| Median (115 companies) | 10.1% | 3.5% | 9.0% | 8.9% | 8.5% |
|---|
| Jindal Worldwide ($JINDWORLD) | 15.6% | 14.5% | 15.2% | 13.7% | 11.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bombay Rayon Fashions ($BRFL) | 5.9x | 4.9x | 4.9x | 11.6x | 10.0x |
| Ruby Mills ($RUBYMILLS) | 15.9x | 12.6x | 15.3x | 10.8x | 8.6x |
| Dcm ($DCM) | 3.1x | 13.5x | 3.5x | 3.7x | 5.5x |
| Nahar Spinning Mills ($NAHARSPING) | 4.6x | 70.8x | 3.8x | 3.2x | 4.9x |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 6.1x | 10.0x | 0.0x | 0.0x | 4.6x |
| |
|---|
| Median (66 companies) | 3.9x | 3.8x | 3.2x | 0.0x | 0.0x |
|---|
| Jindal Worldwide ($JINDWORLD) | 2.5x | 2.3x | 2.8x | 4.3x | 3.6x |
