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Ginni Filaments EBITDA jumped on 15.6% while Revenue decreased slightly on 1.3%

21-09-2020 • About Ginni Filaments ($GINNIFIL) • By InTwits

Ginni Filaments reported FY2020 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 6.9%
  • It operates with high leverage: Net Debt/EBITDA is 5.1x while industry average is 2.8x
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 slightly on 1.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 6.4% to 7.5% in FY2020.

Net Income margin increased slightly on 1.2 pp from -0.44% to 0.72% in FY2020.

Investments (CAPEX, working capital and M&A)

In FY2020 Ginni Filaments had CAPEX/Revenue of 1.2%. Ginni Filaments's CAPEX/Revenue decreased on 3.1 pp from 4.3% in FY2017 to 1.2% in FY2020. It's average level of CAPEX/Revenue for the last three years was 2.6%.

Return on investment

The company operates at low ROIC (6.9%) and ROE (3.1%). ROIC increased slightly on 1.3 pp from 5.6% to 6.9% in FY2020. ROE increased on 5.1 pp from -2.0% to 3.1% in FY2020.

Leverage (Debt)

Company's Net Debt / EBITDA is 5.1x and Debt / EBITDA is 5.1x. Net Debt / EBITDA dropped on 0.3x from 5.4x to 5.1x in FY2020. Debt increased on 9.6% while cash jumped on 134%.

Ginni Filaments has short term refinancing risk: cash is only 1.1% of short term debt.

Financial and operational results

FY ended 31-03-2020

Ginni Filaments ($GINNIFIL) key annual financial indicators

mln. INR201620172018201920202020/2019
Net Income4416127-3557
Balance Sheet
Short Term Debt1,6531,5422,0442,1252,1521.3%
Long Term Debt79071862264688536.9%
Cash flow
Revenue growth-11.5%0.4%-7.5%14.6%-1.3%
EBITDA growth-21.3%8.6%-32.6%-2.1%15.6%

EBITDA Margin9.6%10.3%7.5%6.4%7.5%1.1%
Net Income Margin0.6%2.1%0.4%-0.4%0.7%1.2%
CAPEX, % of revenue4.3%5.1%1.4%1.2%-0.2%

Net Debt/EBITDA3.4x2.9x5.0x5.4x5.1x-0.3x

Peers in

Below you can find Ginni Filaments benchmarking vs. other companies in 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  FY2016 FY2017 FY2018 FY2019 FY2020
Fertilizers & Chemicals Travancore ($FACT)-8.5%2.4%1.3%41.7%
Median (1 company)5.2%-4.6%-4.4%1.3%41.7%
Ginni Filaments ($GINNIFIL)-0.4%-7.5%14.6%-1.3%

Top companies by EBITDA margin, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Fertilizers & Chemicals Travancore ($FACT)-11.9%2.4%8.7%0.5%10.1%
Vardhman Acrylics ($VARDHACRLC)9.9%10.2%9.6%-8.0%
Median (2 companies)10.3%6.3%9.2%0.5%9.0%
Ginni Filaments ($GINNIFIL)9.6%10.3%7.5%6.4%7.5%

Top companies by CAPEX/Revenue, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Vardhman Acrylics ($VARDHACRLC)0.8%0.3%0.5%-1.8%
Fertilizers & Chemicals Travancore ($FACT)0.2%0.4%0.5%0.0%0.0%
Median (2 companies)3.6%0.4%0.5%0.0%0.9%
Ginni Filaments ($GINNIFIL)-4.3%5.1%1.4%1.2%

Top companies by ROIC, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Fertilizers & Chemicals Travancore ($FACT)-60.9%3.4%19.7%-1.9%42.1%
Vardhman Acrylics ($VARDHACRLC)-9.4%7.5%--
Median (2 companies)3.0%6.4%13.6%-1.9%42.1%
Ginni Filaments ($GINNIFIL)9.8%12.4%6.2%5.6%6.9%

Top companies by Net Debt / EBITDA

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Fertilizers & Chemicals Travancore ($FACT)-52.4x13.3x235.2x3.2x
Vardhman Acrylics ($VARDHACRLC)-0.0x-0.2x-0.1x--4.6x
Median (2 companies)0.3x26.1x6.6x235.2x-0.7x
Ginni Filaments ($GINNIFIL)3.4x2.9x5.0x5.4x5.1x