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Ginni Filaments reports 14.6% revenue growth in FY2019 and 1.1 pp EBITDA Margin decline from 7.5% to 6.4%

21-05-2019 • About Ginni Filaments ($GINNIFIL) • By InTwits

Ginni Filaments reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
  • The company has potentially unprofitable business model: ROIC is 5.6%
  • It operates with high leverage: Net Debt/EBITDA is 5.4x 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


Ginni Filaments's Revenue surged on 14.6%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 7.5% to 6.4% in FY2019. EBITDA Margin stuck to a declining trend at -1.1 pp per annum in the last 5 years.

Net Income margin decreased slightly on 0.82 pp from 0.38% to -0.44% in FY2019.

Investments (CAPEX, working capital and M&A)


In FY2019 Ginni Filaments had CAPEX/Revenue of 1.4%. The company's CAPEX/Revenue increased slightly on 1.4 pp from in FY2016 to 1.4% in FY2019. For the last three years the average CAPEX/Revenue was 3.6%.

Return on investment


The company operates at low but positive ROIC (5.6%) and negative ROE (-2.0%). ROIC decreased slightly on 0.59 pp from 6.2% to 5.6% in FY2019. ROE decreased on 3.5 pp from 1.5% to -2.0% in FY2019.

Leverage (Debt)


Debt level is 5.4x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 5.0x to 5.4x in FY2019. Debt increased on 4.0% while cash dropped on 67.0%. During FY2015-FY2019 Net Debt/EBITDA bottomed in FY2017 at 2.9x and was growing since that time.

Ginni Filaments has short term refinancing risk: cash is only 0.5% of short term debt.

Financial and operational results


FY ended 31-03-2019

Ginni Filaments ($GINNIFIL) key annual financial indicators

mln. INR201520162017201820192019/2018
P&L
Revenue8,4777,5037,5376,9727,99114.6%
EBITDA910717779525514-2.1%
Net Income784416127-35-231.6%
Balance Sheet
Cash1940323211-67.0%
Short Term Debt2,0261,6531,5422,0442,1254.0%
Long Term Debt1,1147907186226463.9%
Cash flow
Capex134326353114-67.9%
Ratios
Revenue growth-2.3%-11.5%0.4%-7.5%14.6%
EBITDA growth-27.7%-21.3%8.6%-32.6%-2.1%
EBITDA Margin10.7%9.6%10.3%7.5%6.4%-1.1%
Net Income Margin0.9%0.6%2.1%0.4%-0.4%-0.8%
CAPEX, % of revenue1.6%4.3%5.1%1.4%-3.6%
ROIC12.8%9.8%12.4%6.2%5.6%-0.6%
ROE5.2%3.2%10.2%1.5%-2.0%-3.5%
Net Debt/EBITDA3.4x3.4x2.9x5.0x5.4x0.4x

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  FY2015 FY2016 FY2017 FY2018 FY2019
Fertilizers & Chemicals Travancore ($FACT)--8.5%2.4%1.3%
Vardhman Acrylics ($VARDHACRLC)---17.7%-11.2%-
 
Median (2 companies)8.8%5.2%-4.6%-4.4%1.3%
Ginni Filaments ($GINNIFIL)--0.4%-7.5%14.6%


Top companies by EBITDA margin, %

Top  FY2015 FY2016 FY2017 FY2018 FY2019
Vardhman Acrylics ($VARDHACRLC)-9.9%10.2%9.6%-
Fertilizers & Chemicals Travancore ($FACT)--11.9%2.4%8.7%0.5%
 
Median (2 companies)10.7%10.3%6.3%9.2%0.5%
Ginni Filaments ($GINNIFIL)-9.6%10.3%7.5%6.4%


Top companies by CAPEX/Revenue, %

Top  FY2015 FY2016 FY2017 FY2018 FY2019
Vardhman Acrylics ($VARDHACRLC)-0.8%0.3%0.5%-
Fertilizers & Chemicals Travancore ($FACT)-0.2%0.4%0.5%0.0%
 
Median (2 companies)5.0%3.6%0.4%0.5%0.0%
Ginni Filaments ($GINNIFIL)--4.3%5.1%1.4%


Top companies by ROIC, %

Top  FY2015 FY2016 FY2017 FY2018 FY2019
Fertilizers & Chemicals Travancore ($FACT)--60.9%3.4%19.7%-1.9%
Vardhman Acrylics ($VARDHACRLC)--9.4%7.5%-
 
Median (2 companies)4.4%3.0%6.4%13.6%-1.9%
Ginni Filaments ($GINNIFIL)-9.8%12.4%6.2%5.6%


Top companies by Net Debt / EBITDA

Top  FY2015 FY2016 FY2017 FY2018 FY2019
Fertilizers & Chemicals Travancore ($FACT)--52.4x13.3x235.2x
Vardhman Acrylics ($VARDHACRLC)--0.0x-0.2x-0.1x-
 
Median (2 companies)1.1x0.3x26.1x6.6x235.2x
Ginni Filaments ($GINNIFIL)-3.4x2.9x5.0x5.4x