Nhpc reports 28.7% CAPEX growth in 2016 and 4.7% Revenue growth
28-05-2016 • About Nhpc (
$NHPC) • By InTwits
Nhpc reported FY2016 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 32.0%. At the same time it's in pair with industry average of 32.3%
- CAPEX is quite volatile: ₹2,811m in FY2016, ₹4,488m in FY2015, ₹9,924m in FY2014, ₹5,139m in FY2013, ₹6,186m in FY2012
- The company has potentially unprofitable business model: ROIC is 6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Nhpc's Revenue increased on 4.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.6 pp from 23.5% to 29.1% in FY2016.
SG&A as a % of Revenue increased on 4.4 pp from 22.0% to 26.4% in FY2016.
Net Income margin increased slightly on 0.94 pp from 30.2% to 31.2% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 16.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 25.7% in FY2016. The company showed big decline in CAPEX/Revenue of 11.7 pp from 37.4% in FY2013 to 25.7% in FY2016. Average CAPEX/Revenue for the last three years was 25.7%. CAPEX as a % of Revenue followed a declining trend at -5.6 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (6.1%) and ROE (8.7%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. During the last 5 years ROIC bottomed in FY2014 at 4.8% and was growing since that time. During FY2012-FY2016 ROE bottomed in FY2014 at 4.2% and was growing since that time.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 2.6x to 2.5x in FY2016. Debt decreased slightly on 2.0% while cash increased on 7.2%.
Nhpc has no short term refinancing risk: cash is higher than short term debt (423.1%).
Financial and operational results
Nhpc ($NHPC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 72,181 | 64,062 | 74,159 | 82,441 | 86,278 | 4.7% |
| SG&A | | 11,817 | 19,001 | 18,152 | 22,765 | 25.4% |
| EBITDA | 51,551 | 42,579 | 43,987 | 52,242 | 51,684 | -1.1% |
| Net Income | 30,856 | 26,174 | 12,188 | 24,914 | 26,883 | 7.9% |
Balance Sheet
|
|---|
| Cash | 10,215 | 79,725 | 61,023 | 69,352 | 74,338 | 7.2% |
| Short Term Debt | 16,496 | 15,344 | 15,104 | 18,600 | 17,572 | -5.5% |
| Long Term Debt | 179,126 | 188,059 | 193,090 | 187,245 | 184,167 | -1.6% |
Cash flow
|
|---|
| Capex | 32,979 | 23,989 | 22,499 | 17,260 | 22,208 | 28.7% |
Ratios
|
|---|
| Revenue growth | 40.3% | -11.2% | 15.8% | 11.2% | 4.7% | |
| EBITDA growth | 43.9% | -17.4% | 3.3% | 18.8% | -1.1% | |
|
|---|
| EBITDA Margin | 71.4% | 66.5% | 59.3% | 63.4% | 59.9% | -3.5% |
| SG&A, % of revenue | | 18.4% | 25.6% | 22.0% | 26.4% | 4.4% |
| Net Income Margin | 42.7% | 40.9% | 16.4% | 30.2% | 31.2% | 0.9% |
| CAPEX, % of revenue | 45.7% | 37.4% | 30.3% | 20.9% | 25.7% | 4.8% |
|
|---|
| ROIC | 8.3% | 5.5% | 4.8% | 6.0% | 6.1% | 0.1% |
| ROE | 11.2% | 9.0% | 4.2% | 8.4% | 8.7% | 0.2% |
| Net Debt/EBITDA | 3.6x | 2.9x | 3.3x | 2.6x | 2.5x | -0.1x |
Peers in Electric Utilities
Below you can find Nhpc benchmarking vs. other companies in Electric Utilities 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 |
|---|
| Bf Utilities ($BFUTILITIE) | 41.4% | 9.2% | 20.6% | 117.9% | - |
| Jaiprakash Power Ventures ($JPPOWER) | - | 52.2% | 9.0% | 38.1% | 11.1% |
| Adani Power ($ADANIPOWER) | - | 65.7% | 128.0% | 21.7% | 34.1% |
| Torrent Power ($TORNTPOWER) | - | 9.9% | 5.6% | 19.8% | 12.4% |
| Ptc India ($PTC) | - | 14.2% | 31.5% | 14.9% | 0.6% |
| |
|---|
| Median (17 companies) | 22.8% | 15.3% | 8.4% | 6.1% | 5.8% |
|---|
| Nhpc ($NHPC) | - | -11.2% | 15.8% | 11.2% | 4.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 83.7% | 85.6% | 84.9% | 85.8% | 87.0% |
| Orient Green Power Company ($GREENPOWER) | 24.4% | 53.3% | 57.8% | 82.8% | 86.9% |
| Bf Utilities ($BFUTILITIE) | 43.9% | 55.1% | 61.2% | 72.2% | - |
| Jaiprakash Power Ventures ($JPPOWER) | 91.7% | 70.6% | 60.1% | 63.3% | 57.2% |
| Energy Development Company ($ENERGYDEV) | - | - | - | 44.3% | - |
| |
|---|
| Median (18 companies) | 24.4% | 24.7% | 25.0% | 22.3% | 27.8% |
|---|
| Nhpc ($NHPC) | 71.4% | 66.5% | 59.3% | 63.4% | 59.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 184.3% | 172.4% | 173.4% | 169.8% | 120.3% |
| Jaiprakash Power Ventures ($JPPOWER) | 378.9% | 341.9% | 229.9% | 113.6% | 66.7% |
| Ksk Energy Ventures ($KSK) | 161.9% | 80.3% | 57.0% | 57.4% | - |
| Nava Bharat Ventures ($NBVENTURES) | 69.0% | 30.5% | 70.6% | 55.3% | - |
| Gvk Power & Infrastructure ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
| |
|---|
| Median (15 companies) | 104.0% | 46.8% | 39.9% | 19.3% | 10.6% |
|---|
| Nhpc ($NHPC) | 45.7% | 37.4% | 30.3% | 20.9% | 25.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Utilities ($BFUTILITIE) | 1.9% | 4.5% | 6.0% | 17.2% | - |
| Alstom T&D India ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| Ptc India ($PTC) | 11.2% | 10.4% | 13.6% | 12.3% | 13.6% |
| Torrent Power ($TORNTPOWER) | 19.0% | 7.3% | 4.9% | 8.1% | 12.2% |
| Power Grid Corporation Of India ($POWERGRID) | 8.3% | 8.8% | 8.4% | 7.7% | 8.4% |
| |
|---|
| Median (19 companies) | 4.8% | 5.6% | 5.5% | 5.8% | 8.4% |
|---|
| Nhpc ($NHPC) | 8.3% | 5.5% | 4.8% | 6.0% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | - |
| Gvk Power & Infrastructure ($GVKPIL) | 19.1x | 23.9x | 20.1x | 20.2x | 14.2x |
| Gmr Infrastructure ($GMRINFRA) | 19.5x | 15.1x | 16.7x | 17.7x | - |
| Lanco Infratech ($LITL) | 16.3x | 12.9x | 19.2x | 17.5x | 18.1x |
| Jaiprakash Power Ventures ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x |
| |
|---|
| Median (18 companies) | 11.3x | 8.6x | 6.6x | 6.2x | 5.8x |
|---|
| Nhpc ($NHPC) | 3.6x | 2.9x | 3.3x | 2.6x | 2.5x |
