Hindusthan National Glass & Industries reports 25.5% EBITDA growth in 2016 while 1.6% Revenue decline
27-05-2016 • About Hindusthan National Glass & Industries (
$HINDNATGLS) • By InTwits
Hindusthan National Glass & Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Hindusthan National Glass & Industries has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.5%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: ₹1,092m in FY2016, ₹88m in FY2015, ₹1,467m in FY2014, ₹5,150m in FY2013, ₹15,307m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.4%
- It operates with high leverage: Net Debt/EBITDA is 8.1x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hindusthan National Glass & Industries's Revenue decreased slightly on 1.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.3 pp from 12.1% to 15.4% in FY2016.
Net Income margin increased on 3.1 pp from -10.2% to -7.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 4.8%. Hindusthan National Glass & Industries's CAPEX/Revenue dropped on 20.2 pp from 25.0% in FY2013 to 4.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.0%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2015 at 0.38%.
Return on investment
The company operates at low but positive ROIC (3.4%) and negative ROE (-41.5%). ROIC increased on 3.8 pp from -0.40% to 3.4% in FY2016. ROE decreased on 2.1 pp from -39.4% to -41.5% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2013 at -0.98% and was growing since that time. ROE followed a declining trend at -11.2 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.1x and Debt / EBITDA is 8.2x. Net Debt / EBITDA dropped on 2.5x from 10.6x to 8.1x in FY2016. Debt decreased on 3.9% while cash jumped on 58.1%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 15.8x and was declining since that time.
Hindusthan National Glass & Industries has short term refinancing risk: cash is only 2.3% of short term debt.
Management team
The company's CEO is Sanjay Somany. Sanjay Somany has 15 years tenure with the company.
Financial and operational results
Hindusthan National Glass & Industries ($HINDNATGLS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,261 | 20,610 | 21,759 | 23,298 | 22,921 | -1.6% |
| EBITDA | 3,114 | 1,912 | 2,651 | 2,812 | 3,528 | 25.5% |
| Net Income | 433 | -1,880 | -1,968 | -2,381 | -1,634 | |
Balance Sheet
|
|---|
| Cash | 112 | 379 | 300 | 102 | 162 | 58.1% |
| Short Term Debt | 4,898 | 10,115 | 9,838 | 9,667 | 6,909 | -28.5% |
| Long Term Debt | 18,349 | 20,411 | 20,155 | 20,321 | 21,921 | 7.9% |
Cash flow
|
|---|
| Capex | 15,307 | 5,150 | 1,467 | 88 | 1,092 | 1,136.5% |
Ratios
|
|---|
| Revenue growth | 29.7% | 1.7% | 5.6% | 7.1% | -1.6% | |
| EBITDA growth | 11.9% | -38.6% | 38.6% | 6.1% | 25.5% | |
|
|---|
| EBITDA Margin | 15.4% | 9.3% | 12.2% | 12.1% | 15.4% | 3.3% |
| Net Income Margin | 2.1% | -9.1% | -9.0% | -10.2% | -7.1% | 3.1% |
| CAPEX, % of revenue | 75.5% | 25.0% | 6.7% | 0.4% | 4.8% | 4.4% |
|
|---|
| ROIC | 6.6% | -1.0% | -0.7% | -0.4% | 3.4% | 3.8% |
| ROE | 3.9% | -18.6% | -23.8% | -39.4% | -41.5% | -2.1% |
| Net Debt/EBITDA | 7.4x | 15.8x | 11.2x | 10.6x | 8.1x | -2.5x |
Peers in Containers & Packaging
Below we provide Hindusthan National Glass & Industries benchmarking against other companies in Containers & Packaging 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | - | 20.0% | 14.1% | 23.9% | 17.9% |
| Shri Jagdamba Polymers ($SHRJAGP) | 35.5% | 38.3% | 21.7% | 22.7% | - |
| Kg Petrochem ($KGPETRO) | 16.1% | 24.0% | 20.9% | 22.4% | - |
| Kanpur Plastipack ($KANPRPLA) | - | -4.6% | 21.1% | 15.9% | -0.0% |
| Emmbi Industries ($EMMBI) | - | 36.6% | 13.9% | 14.8% | 13.3% |
| |
|---|
| Median (19 companies) | 16.1% | 16.9% | 14.1% | 8.5% | -1.9% |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | - | 1.7% | 5.6% | 7.1% | -1.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 13.9% | 19.2% | 22.5% | 25.2% | 27.3% |
| Manaksia ($MANAKSIA) | 14.4% | 17.4% | 20.3% | 18.6% | 16.6% |
| Essel Propack ($ESSELPRO) | 17.0% | 17.4% | 16.9% | 17.2% | 19.4% |
| Time Technoplast ($TIMETECHNO) | 15.9% | 16.2% | 14.1% | 13.7% | - |
| Piramal Glass ($PIRAMGLAS) | 23.7% | 18.9% | 15.5% | 13.5% | - |
| |
|---|
| Median (22 companies) | 12.9% | 11.3% | 11.5% | 8.8% | 13.6% |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 15.4% | 9.3% | 12.2% | 12.1% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 3.0% | 5.0% | 7.5% | 11.9% | 8.9% |
| Essel Propack ($ESSELPRO) | 10.0% | 6.7% | 8.5% | 9.4% | 8.9% |
| Manaksia ($MANAKSIA) | 9.0% | 4.8% | 4.7% | 6.5% | 8.5% |
| Piramal Glass ($PIRAMGLAS) | 20.7% | 6.0% | 7.7% | 4.6% | - |
| Time Technoplast ($TIMETECHNO) | 17.9% | 11.1% | 6.2% | 4.2% | - |
| |
|---|
| Median (6 companies) | 8.6% | 6.4% | 6.9% | 5.6% | 8.7% |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 75.5% | 25.0% | 6.7% | 0.4% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | - | 19.7% | 22.2% | 25.2% | 26.2% |
| Essel Propack ($ESSELPRO) | 8.6% | 9.9% | 12.5% | 14.7% | 16.6% |
| Time Technoplast ($TIMETECHNO) | 12.8% | 13.4% | 12.0% | 12.9% | - |
| Manaksia ($MANAKSIA) | 12.9% | 15.5% | 16.0% | 11.4% | 9.2% |
| Uflex ($UFLEX) | 12.5% | 9.9% | 8.1% | 8.4% | 9.0% |
| |
|---|
| Median (32 companies) | 9.4% | 9.9% | 12.0% | 12.2% | 12.9% |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 6.6% | -1.0% | -0.7% | -0.4% | 3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Piramal Glass ($PIRAMGLAS) | 3.1x | 4.1x | 4.3x | 4.2x | - |
| Uflex ($UFLEX) | 2.7x | 3.0x | 3.2x | 2.8x | 2.2x |
| Essel Propack ($ESSELPRO) | 3.2x | 2.9x | 2.6x | 2.2x | 1.6x |
| Time Technoplast ($TIMETECHNO) | 2.6x | 2.6x | 2.6x | 2.2x | - |
| Manaksia ($MANAKSIA) | 1.3x | 1.2x | 0.3x | 0.9x | 0.1x |
| |
|---|
| Median (20 companies) | 3.2x | 3.3x | 0.9x | 0.0x | 0.0x |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 7.4x | 15.8x | 11.2x | 10.6x | 8.1x |
