Ginni Filaments EBITDA dropped on 32.6% and EBITDA Margin decreased on 2.8 pp from 10.3% to 7.5%
29-05-2018 • About Ginni Filaments (
$GINNIFIL) • By InTwits
Ginni Filaments reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is 6.2%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 3.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 7.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.8 pp from 10.3% to 7.5% in FY2018. EBITDA Margin stuck to a declining trend at -1.4 pp per annum in FY2014-FY2018.
Net Income margin decreased slightly on 1.8 pp from 2.1% to 0.38% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.1% in FY2018. Ginni Filaments showed CAPEX/Revenue growth of 3.5 pp from 1.6% in FY2015 to 5.1% in FY2018. Ginni Filaments invested a big chunk of EBITDA (67.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (6.2%) and ROE (1.5%). ROIC decreased on 6.3 pp from 12.4% to 6.2% in FY2018. ROE decreased on 8.7 pp from 10.2% to 1.5% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.1x. Net Debt / EBITDA surged on 2.2x from 2.9x to 5.0x in FY2018. Debt jumped on 18.0% while cash decreased slightly on 1.7%.
Ginni Filaments has short term refinancing risk: cash is only 1.6% of short term debt.
Financial and operational results
FY ended 31-03-2018
Ginni Filaments ($GINNIFIL) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 8,680 | 8,477 | 7,503 | 7,537 | 6,972 | -7.5% |
| EBITDA | 1,260 | 910 | 717 | 779 | 525 | -32.6% |
| Net Income | 363 | 78 | 44 | 161 | 27 | -83.5% |
Balance Sheet
|
|---|
| Cash | 42 | 19 | 40 | 32 | 32 | -1.7% |
| Short Term Debt | 1,502 | 2,026 | 1,653 | 1,542 | 2,044 | 32.6% |
| Long Term Debt | 1,623 | 1,114 | 790 | 718 | 622 | -13.4% |
Cash flow
|
|---|
| Capex | | 134 | | 326 | 353 | 8.2% |
Ratios
|
|---|
| Revenue growth | 16.6% | -2.3% | -11.5% | 0.4% | -7.5% | |
| EBITDA growth | 34.5% | -27.7% | -21.3% | 8.6% | -32.6% | |
|
|---|
| EBITDA Margin | 14.5% | 10.7% | 9.6% | 10.3% | 7.5% | -2.8% |
| Net Income Margin | 4.2% | 0.9% | 0.6% | 2.1% | 0.4% | -1.8% |
| CAPEX, % of revenue | | 1.6% | | 4.3% | 5.1% | 0.7% |
|
|---|
| ROIC | 21.6% | 12.8% | 9.8% | 12.4% | 6.2% | -6.3% |
| ROE | 31.6% | 5.2% | 3.2% | 10.2% | 1.5% | -8.7% |
| Net Debt/EBITDA | 2.4x | 3.4x | 3.4x | 2.9x | 5.0x | 2.2x |
Peers in
Below we provide Ginni Filaments benchmarking against other companies in 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | - | 8.5% | 2.4% |
| Vardhman Acrylics ($VARDHACRLC) | - | - | - | -17.7% | -11.2% |
| |
|---|
| Median (2 companies) | 3.9% | 8.8% | 5.2% | -4.6% | -4.4% |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | - | 0.4% | -7.5% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vardhman Acrylics ($VARDHACRLC) | - | - | 9.9% | 10.2% | 9.6% |
| Fertilizers & Chemicals Travancore ($FACT) | - | - | -11.9% | 2.4% | 8.7% |
| |
|---|
| Median (2 companies) | 14.7% | 10.7% | 10.3% | 6.3% | 9.2% |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | 9.6% | 10.3% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vardhman Acrylics ($VARDHACRLC) | - | - | 0.8% | 0.3% | 0.5% |
| Fertilizers & Chemicals Travancore ($FACT) | - | - | 0.2% | 0.4% | 0.5% |
| |
|---|
| Median (2 companies) | 4.5% | 5.0% | 3.6% | 0.4% | 0.5% |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | - | 4.3% | 5.1% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | -60.9% | 3.4% | 19.7% |
| Vardhman Acrylics ($VARDHACRLC) | - | - | - | 9.4% | 7.5% |
| |
|---|
| Median (2 companies) | 5.9% | 4.4% | 3.0% | 6.4% | 13.6% |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | 9.8% | 12.4% | 6.2% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Fertilizers & Chemicals Travancore ($FACT) | - | - | - | 52.4x | 13.3x |
| Vardhman Acrylics ($VARDHACRLC) | - | - | -0.0x | -0.2x | -0.1x |
| |
|---|
| Median (2 companies) | 2.2x | 1.1x | 0.3x | 26.1x | 6.6x |
|---|
| Ginni Filaments ($GINNIFIL) | - | - | 3.4x | 2.9x | 5.0x |
