Hbl Power Systems Debt dropped on 17.3% and Net Debt / EBITDA dropped on 0.5x from 4.7x to 4.2x
30-05-2016 • About Hbl Power Systems (
$HBLPOWER) • By InTwits
Hbl Power Systems reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hbl Power Systems has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: ₹190m in FY2016, ₹284m in FY2015, ₹174m in FY2014, ₹665m in FY2013, ₹939m in FY2012
- The company has potentially unprofitable business model: ROIC is 6.5%
- It operates with high leverage: Net Debt/EBITDA is 4.2x while industry average is 10.1x
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 decreased on 3.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.6 pp from 10.9% to 13.6% in FY2016.
Net Income margin increased slightly on 0.94 pp from 1.1% to 2.0% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Hbl Power Systems had CAPEX/Revenue of 1.5%. Hbl Power Systems's CAPEX/Revenue decreased on 2.4 pp from 3.9% in FY2013 to 1.5% in FY2016. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (6.5%) and ROE (4.5%). ROIC showed almost no change in FY2016. ROE increased on 2.0 pp from 2.5% to 4.5% in FY2016.
Leverage (Debt)
Debt level is 4.2x Net Debt / EBITDA and 4.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 4.7x to 4.2x in FY2016. Debt dropped on 17.3% while cash dropped on 22.7%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 6.8x and was declining since that time.
Hbl Power Systems has short term refinancing risk: cash is only 3.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 11.0x and P/E 34.1x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 12.9x with the industry average at 22.8x.
Financial and operational results
Hbl Power Systems ($HBLPOWER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15,644 | 17,103 | 13,075 | 13,503 | 13,020 | -3.6% |
| EBITDA | 2,168 | 2,295 | 1,053 | 1,400 | 1,307 | -6.7% |
| Net Income | 185 | 234 | 396 | 142 | 260 | 82.8% |
Balance Sheet
|
|---|
| Cash | 313 | 241 | 227 | 225 | 174 | -22.7% |
| Short Term Debt | 5,278 | 6,120 | 5,071 | 4,850 | 4,421 | -8.8% |
| Long Term Debt | 3,917 | 4,169 | 2,270 | 2,015 | 1,253 | -37.8% |
Cash flow
|
|---|
| Capex | 939 | 665 | 174 | 284 | 190 | -33.0% |
Ratios
|
|---|
| Revenue growth | 29.8% | 9.3% | -23.6% | 3.3% | -3.6% | |
| EBITDA growth | 151.2% | 5.9% | -54.1% | 33.0% | -6.7% | |
|
|---|
| EBITDA Margin | 13.9% | 13.4% | 8.1% | 10.4% | 10.0% | -0.3% |
| Net Income Margin | 1.2% | 1.4% | 3.0% | 1.1% | 2.0% | 0.9% |
| CAPEX, % of revenue | 6.0% | 3.9% | 1.3% | 2.1% | 1.5% | -0.6% |
|
|---|
| ROIC | 10.6% | 10.1% | 4.3% | 6.7% | 6.5% | -0.2% |
| ROE | 3.4% | 4.4% | 7.2% | 2.5% | 4.5% | 2.0% |
| Net Debt/EBITDA | 4.1x | 4.4x | 6.8x | 4.7x | 4.2x | -0.5x |
Peers in Other Elect.Equip./ Prod.
Below you can find Hbl Power Systems benchmarking vs. other companies in Other Elect.Equip./ Prod. 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 |
|---|
| Salzer Electronics ($SALZER) | - | 2.6% | 6.9% | 15.9% | 27.5% |
| Ultracab (India) ($ULTRACAB) | - | 26.2% | 10.5% | 10.6% | 17.7% |
| Kirloskar Electric Company ($KECL) | - | -1.7% | -7.6% | -48.5% | 7.3% |
| Cords Cable Industries ($CORDSCABLE) | - | 2.3% | -31.8% | 0.8% | 6.9% |
| Emgee Cables & Communications ($EMGEECA) | - | -1.4% | 1.1% | -0.8% | -2.2% |
| |
|---|
| Median (12 companies) | 32.7% | -2.2% | 0.4% | 7.3% | -5.3% |
|---|
| Hbl Power Systems ($HBLPOWER) | - | 9.3% | -23.6% | 3.3% | -3.6% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Malvica Engineering ($MALVICAE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fluidomat ($FLUIDOM) | - | - | - | 28.0% | - |
| Indosolar ($INDOSOLAR) | -114.4% | -52.7% | -140.0% | 16.3% | 3.3% |
| Genus Power Infrastructures ($GENUSPOWER) | 14.1% | 11.0% | 13.8% | 13.8% | 14.8% |
| Salzer Electronics ($SALZER) | 12.9% | 12.5% | 12.4% | 12.6% | 12.1% |
| Pitti Laminations ($PITTILAM) | 15.6% | 13.6% | 13.2% | 12.0% | 6.2% |
| |
|---|
| Median (16 companies) | 8.0% | 8.8% | 9.3% | 7.8% | 8.2% |
|---|
| Hbl Power Systems ($HBLPOWER) | 13.9% | 13.4% | 8.1% | 10.4% | 10.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Indosolar ($INDOSOLAR) | 311.2% | 148.3% | 42.3% | 26.9% | 7.1% |
| Diamond Power Infrastructure ($DIAPOWER) | - | 6.8% | 8.4% | 8.7% | - |
| Salzer Electronics ($SALZER) | 6.8% | 5.6% | 4.1% | 8.2% | 9.8% |
| Birla Ericsson Optical ($BIRLAERIC) | 1.3% | 4.4% | 4.0% | 3.5% | - |
| Kirloskar Electric Company ($KECL) | 1.8% | 0.7% | 1.8% | 2.3% | 0.3% |
| |
|---|
| Median (6 companies) | 2.8% | 4.4% | 4.1% | 5.8% | 5.4% |
|---|
| Hbl Power Systems ($HBLPOWER) | 6.0% | 3.9% | 1.3% | 2.1% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Salzer Electronics ($SALZER) | 14.6% | 12.7% | 13.0% | 14.6% | 13.8% |
| Genus Power Infrastructures ($GENUSPOWER) | 12.4% | 8.0% | 12.2% | 13.5% | 12.7% |
| Malvica Engineering ($MALVICAE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Indosolar ($INDOSOLAR) | -14.0% | -6.8% | -5.2% | 2.2% | -3.0% |
| Kirloskar Electric Company ($KECL) | 9.0% | -3.6% | -16.5% | -30.9% | -12.4% |
| |
|---|
| Median (19 companies) | 8.9% | 8.1% | 10.5% | 2.2% | 0.0% |
|---|
| Hbl Power Systems ($HBLPOWER) | 10.6% | 10.1% | 4.3% | 6.7% | 6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 3.3x | 5.2x | 4.8x | 46.8x | - |
| Indosolar ($INDOSOLAR) | - | - | - | 20.3x | 66.3x |
| Salzer Electronics ($SALZER) | 1.9x | 2.2x | 2.6x | 2.7x | 2.2x |
| Genus Power Infrastructures ($GENUSPOWER) | 3.2x | 3.9x | 2.9x | 2.7x | 1.5x |
| Birla Ericsson Optical ($BIRLAERIC) | 14.5x | 2.9x | 1.3x | 1.6x | 0.0x |
| |
|---|
| Median (13 companies) | 3.3x | 4.1x | 2.6x | 0.0x | 0.0x |
|---|
| Hbl Power Systems ($HBLPOWER) | 4.1x | 4.4x | 6.8x | 4.7x | 4.2x |
