Heidelbergcement India EBITDA jumped on 109% and EBITDA Margin increased on 7.9 pp from 7.4% to 15.3%
24-05-2016 • About Heidelbergcement India (
$HEIDELBERG) • By InTwits
Heidelbergcement India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 15.3% in FY2016, 7.4% in FY2015, 15.9% in FY2014, 9.3% in FY2013, 8.3% in FY2012
- The company has business model with low profitability: ROIC is 8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Heidelbergcement India's Revenue showed almost no change in FY2016. During FY2012-FY2016 Revenue growth topped in FY2013 at 37.5% and was decelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.9 pp from 7.4% to 15.3% in FY2016.
Net Income margin increased slightly on 1.6 pp from 0.71% to 2.3% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 7.6%. CAPEX/Revenue dropped on 11.7 pp from 19.2% in FY2013 to 7.6% in FY2016.
Return on investment
The company operates at low ROIC (8.0%) and ROE (4.4%).
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 7.5x from 10.4x to 3.0x in FY2016. Debt dropped on 41.8% while cash dropped on 75.6%.
Heidelbergcement India has short term refinancing risk: cash is only 11.1% of short term debt.
Management team
Anil Kumar Sharma is a Heidelbergcement India's CFO. Anil Kumar Sharma has spent 10 years at the company.
Financial and operational results
Heidelbergcement India ($HEIDELBERG) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,585 | 11,805 | 16,093 | 16,492 | 16,553 | 0.4% |
| EBITDA | 710 | 1,098 | 2,551 | 1,213 | 2,532 | 108.8% |
| Net Income | 308 | -407 | 514 | 117 | 387 | 230.9% |
Balance Sheet
|
|---|
| Cash | 365 | 201 | | 319 | 78 | -75.6% |
| Short Term Debt | 450 | 642 | | 3,738 | 700 | -81.3% |
| Long Term Debt | 9,858 | 12,926 | | 9,249 | 6,861 | -25.8% |
Cash flow
|
|---|
| Capex | 4,425 | 2,269 | | | 1,250 | |
Ratios
|
|---|
| Revenue growth | -13.1% | 37.5% | 36.3% | 2.5% | 0.4% | |
| EBITDA growth | 4.8% | 54.8% | 132.3% | -52.5% | 108.8% | |
|
|---|
| EBITDA Margin | 8.3% | 9.3% | 15.9% | 7.4% | 15.3% | 7.9% |
| Net Income Margin | 3.6% | -3.5% | 3.2% | 0.7% | 2.3% | 1.6% |
| CAPEX, % of revenue | 51.5% | 19.2% | | | 7.6% | |
|
|---|
| ROIC | 2.2% | 0.6% | | | 8.0% | |
| ROE | 3.7% | -4.8% | | | 4.4% | |
| Net Debt/EBITDA | 14.0x | 12.2x | 0.0x | 10.4x | 3.0x | -7.5x |
Peers in Cement & Cement Products
Below you can find Heidelbergcement India 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ncl Industries ($NCLIND) | 38.2% | -15.8% | -3.0% | 30.8% | - |
| Indian Hume Pipe Co ($INDIANHUME) | - | 34.5% | 18.3% | 22.7% | -7.2% |
| J.K.Cement ($JKCEMENT) | 21.8% | 14.7% | -4.0% | 21.2% | - |
| Visaka Industries ($VIKASAS) | - | 22.0% | -2.6% | 13.6% | -0.8% |
| Prism Cement ($PRISMCEM) | 33.2% | 4.9% | 5.3% | 12.5% | - |
| |
|---|
| Median (16 companies) | 24.8% | 11.4% | -1.6% | 7.3% | -1.6% |
|---|
| Heidelbergcement India ($HEIDELBERG) | - | 37.5% | 36.3% | 2.5% | 0.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orient Cement ($ORIENTCEM) | - | 21.5% | 15.0% | 19.8% | 12.2% |
| Saurashtra Cement ($SAURASHCEM) | 11.4% | 21.6% | 11.9% | 16.8% | 13.8% |
| Ambuja Cements ($AMBUJACEM) | 25.6% | 18.2% | 19.4% | 16.4% | - |
| India Cements ($INDIACEM) | 20.6% | 18.4% | 12.4% | 15.1% | - |
| Deccan Cements ($DECCANCE) | 22.8% | 13.2% | 14.7% | 14.9% | 19.9% |
| |
|---|
| Median (15 companies) | 19.2% | 14.1% | 11.7% | 13.0% | 11.3% |
|---|
| Heidelbergcement India ($HEIDELBERG) | 8.3% | 9.3% | 15.9% | 7.4% | 15.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 91.1% | - |
| Orient Cement ($ORIENTCEM) | - | 2.9% | - | 59.7% | 24.5% |
| J.K.Cement ($JKCEMENT) | 6.5% | 18.8% | 55.8% | 16.2% | - |
| Acc ($ACC) | 5.0% | 8.6% | 13.7% | 9.5% | - |
| Birla Corporation ($BIRLACORPN) | 19.1% | 7.1% | 5.5% | 6.9% | 5.1% |
| |
|---|
| Median (13 companies) | 5.5% | 7.1% | 6.9% | 5.2% | 3.8% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 38.6% | 42.7% | 13.9% | 26.9% | 23.6% |
| Indian Hume Pipe Co ($INDIANHUME) | 7.6% | 13.8% | 15.0% | 18.0% | 14.5% |
| Orient Cement ($ORIENTCEM) | - | 57.3% | 15.2% | 15.4% | 4.6% |
| Acc ($ACC) | 20.2% | 12.7% | 11.0% | 9.9% | - |
| K.C.P ($KCP) | 17.6% | 6.7% | 7.1% | 9.3% | - |
| |
|---|
| Median (17 companies) | 15.8% | 11.2% | 6.4% | 8.3% | 8.8% |
|---|
| Heidelbergcement India ($HEIDELBERG) | 2.2% | 0.6% | - | - | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 17.1x | 358.6x |
| Prism Cement ($PRISMCEM) | 4.8x | 6.0x | 10.0x | 6.0x | - |
| J.K.Cement ($JKCEMENT) | 2.3x | 2.3x | 6.9x | 5.8x | - |
| India Cements ($INDIACEM) | 3.2x | 3.5x | 5.5x | 4.6x | - |
| Orient Cement ($ORIENTCEM) | - | -0.1x | 1.1x | 3.5x | 6.8x |
| |
|---|
| Median (14 companies) | 1.8x | 2.4x | 3.1x | 2.6x | 3.2x |
|---|
| Heidelbergcement India ($HEIDELBERG) | 14.0x | 12.2x | 0.0x | 10.4x | 3.0x |
