Jindal Worldwide reports 64.8% EBITDA growth in 2016 and 20.1% Revenue growth
28-05-2016 • About Jindal Worldwide (
$JINDWORLD) • By InTwits
Jindal Worldwide reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Jindal Worldwide is a fast growth stock: FY2016 revenue growth was 20.1%, 5 year revenue CAGR was 22.1% at FY2016 ROIC 18.0%
- EBITDA Margin is expanding: 14.3% in FY2016 vs. 10.4% in FY2015 vs. 7.5% in FY2012
- Jindal Worldwide has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.6%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: ₹225m in FY2016, ₹978m in FY2015, ₹1,614m in FY2014, ₹633m in FY2013, ₹149m in FY2012
- The company has highly profitable business model: ROIC is 18.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 20.1%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.9 pp from 10.4% to 14.3% in FY2016. EBITDA Margin followed a growing trend at 1.6 pp per annum in FY2012-FY2016.
Net Income margin increased slightly on 0.82 pp from 3.2% to 4.0% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.2%. The company showed decline in CAPEX/Revenue of 8.2 pp from 10.5% in FY2013 to 2.2% in FY2016. Average CAPEX/Revenue for the last three years was 11.5%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 20.7% and was declining since that time.
Return on investment
The company operates at high and attractive ROE (20.9%) while ROIC is a bit lower (18.0%). ROIC increased on 7.0 pp from 11.0% to 18.0% in FY2016. ROE increased on 3.8 pp from 17.1% to 20.9% in FY2016.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 3.6x to 2.1x in FY2016. Debt dropped on 11.2% while cash dropped on 60.4%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 4.3x and was declining since that time.
Jindal Worldwide has short term refinancing risk: cash is only 14.1% of short term debt.
Financial and operational results
Jindal Worldwide ($JINDWORLD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,030 | 6,059 | 7,804 | 8,401 | 10,091 | 20.1% |
| EBITDA | 379 | 463 | 700 | 877 | 1,444 | 64.8% |
| Net Income | 151 | 136 | 254 | 267 | 403 | 51.1% |
Balance Sheet
|
|---|
| Cash | 290 | 272 | 118 | 343 | 136 | -60.4% |
| Short Term Debt | 754 | 768 | 1,121 | 1,307 | 962 | -26.4% |
| Long Term Debt | 401 | 809 | 1,979 | 2,183 | 2,137 | -2.1% |
Cash flow
|
|---|
| Capex | 149 | 633 | 1,614 | 978 | 225 | -77.0% |
Ratios
|
|---|
| Revenue growth | 35.3% | 20.5% | 28.8% | 7.7% | 20.1% | |
| EBITDA growth | 6.4% | 22.1% | 51.2% | 25.1% | 64.8% | |
|
|---|
| EBITDA Margin | 7.5% | 7.6% | 9.0% | 10.4% | 14.3% | 3.9% |
| Net Income Margin | 3.0% | 2.2% | 3.3% | 3.2% | 4.0% | 0.8% |
| CAPEX, % of revenue | 3.0% | 10.5% | 20.7% | 11.6% | 2.2% | -9.4% |
|
|---|
| ROIC | 14.5% | 15.2% | 13.7% | 11.0% | 18.0% | 7.0% |
| ROE | 16.2% | 12.6% | 20.0% | 17.1% | 20.9% | 3.8% |
| Net Debt/EBITDA | 2.3x | 2.8x | 4.3x | 3.6x | 2.1x | -1.5x |
Peers in Textiles
Below we provide Jindal Worldwide benchmarking against other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | - | -96.6% | 74,809.1% | 1,749.9% | 50.5% |
| Shri Dinesh Mills ($SHRIDINE) | 5.0% | 5.1% | -76.5% | 304.9% | - |
| Santaram Spinners ($SANTASPN) | 6.0% | 60.7% | -40.9% | 112.0% | - |
| Asahi Industries ($ASAHIIND) | - | 23.0% | 24.4% | 103.9% | -47.3% |
| Blue Chip Tex Industries ($BLUECHIPT) | - | 12.9% | 29.9% | 56.1% | 23.7% |
| |
|---|
| Median (75 companies) | 4.7% | 9.3% | 14.4% | -0.5% | -3.5% |
|---|
| Jindal Worldwide ($JINDWORLD) | - | 20.5% | 28.8% | 7.7% | 20.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sil Investments ($SILINV) | - | - | - | 93.8% | - |
| Swadeshi Polytex ($SWADPOL) | - | - | - | 64.4% | - |
| Binny ($BINNY) | - | - | - | 60.9% | - |
| Ruby Mills ($RUBYMILLS) | 28.3% | 25.1% | 28.6% | 29.3% | - |
| Premier Synthetics ($PREMSYN) | - | - | - | 25.9% | - |
| |
|---|
| Median (86 companies) | 6.2% | 9.5% | 9.5% | 6.9% | 8.8% |
|---|
| Jindal Worldwide ($JINDWORLD) | 7.5% | 7.6% | 9.0% | 10.4% | 14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitin Spinners ($NITINSPIN) | 1.9% | 2.6% | 8.0% | 42.3% | 4.7% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 18.6% | 24.1% | 6.8% | 16.8% | - |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | 13.0% |
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 3.4% | 1.8% | 5.6% | 10.7% | 7.1% |
| |
|---|
| Median (20 companies) | 3.4% | 5.3% | 6.7% | 6.3% | 5.4% |
|---|
| Jindal Worldwide ($JINDWORLD) | 3.0% | 10.5% | 20.7% | 11.6% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Maharaja Shree Umaid Mills ($MAHASHR) | -0.5% | 9.2% | 8.3% | 20.4% | - |
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | 14.4% |
| Arvind ($ARVIND) | 11.3% | 11.2% | 13.7% | 13.2% | 13.1% |
| |
|---|
| Median (128 companies) | 3.5% | 8.9% | 8.6% | 9.0% | 12.3% |
|---|
| Jindal Worldwide ($JINDWORLD) | 14.5% | 15.2% | 13.7% | 11.0% | 18.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | 7.3x |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | - |
| Dcm ($DCM) | 13.5x | 3.5x | 3.7x | 5.5x | - |
| Nahar Spinning Mills ($NAHARSPING) | 70.8x | 3.8x | 3.2x | 4.9x | - |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | - |
| |
|---|
| Median (71 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 0.0x |
|---|
| Jindal Worldwide ($JINDWORLD) | 2.3x | 2.8x | 4.3x | 3.6x | 2.1x |
