S.E.Investments Net Income dropped on 21.1% in 2015 and Revenue dropped on 13.2%
11-04-2015 • About S.E.Investments (
$SEINV) • By InTwits
S.E.Investments reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- S.E.Investments is a company in decline: FY2015 revenue growth was -13.2%, 5 years revenue CAGR was -3.0%
- EBITDA Margin is declining: 65.1% in FY2015 vs. 66.7% in FY2014 vs. 83.1% in FY2011
- S.E.Investments has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- It operates with medium-size leverage: Net Debt/EBITDA is 3.2x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
S.E.Investments ($SEINV) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,842 | 2,218 | 2,384 | 2,194 | 1,906 | -13.2% |
| EBITDA | 1,531 | 1,748 | 1,706 | 1,464 | 1,241 | -15.3% |
| Net Income | 614 | 719 | 708 | 560 | 442 | -21.1% |
Balance Sheet
|
|---|
| Cash | 836 | 670 | 601 | 90 | 149 | 65.8% |
| Short Term Debt | 2,988 | 3,464 | 3,206 | 4,097 | 4,024 | -1.8% |
| Long Term Debt | 1,265 | 1,362 | 662 | 220 | 80 | -63.4% |
Cash flow
|
|---|
| Capex | 3 | 4 | 4 | 5 | 14 | 164.9% |
Ratios
|
|---|
| Revenue growth | -17.0% | 20.4% | 7.5% | -7.9% | -13.2% | |
| EBITDA growth | | 14.2% | -2.4% | -14.1% | -15.3% | |
| EBITDA Margin | 83.1% | 78.8% | 71.6% | 66.7% | 65.1% | -1.6% |
| Net Income Margin | 33.3% | 32.4% | 29.7% | 25.5% | 23.2% | -2.3% |
| CAPEX, % of revenue | 0.1% | 0.2% | 0.1% | 0.2% | 0.7% | 0.5% |
| ROE | | 19.4% | 17.2% | 11.9% | 8.6% | -3.3% |
| Net Debt/EBITDA | 2.2x | 2.4x | 1.9x | 2.9x | 3.2x | 0.3x |
Revenue and profitability
The company's Revenue dropped on 13.2% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 66.7% to 65.1% in FY2015.
Net Income marign decreased on 2.3 pp from 25.5% to 23.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.73% in FY2015. The company showed small growth in CAPEX/Revenue of 0.53 pp from 0.19% in FY2012 to 0.73% in FY2015. For the last three years the average CAPEX/Revenue was 0.37%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 3.3x. Net Debt / EBITDA jumped on 0.3x from 2.9x to 3.2x in FY2015. Debt decreased on 4.9% in FY2015 while cash jumped on 65.8% in FY2015.
Appendix 1: Peers in Finance (including NBFCs)
Below you can find S.E.Investments benchmarking vs. other companies in Finance (including NBFCs) 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advance Powerinfra Tech ($ADVPOWER) | | | | 209.3% | |
| Vishwamitra Financial Services ($VISHWAFIN) | | | 65.2% | 118.5% | |
| Industrial Investment Trust ($IITL) | -88.9% | 119.2% | 72.5% | 76.4% | |
| Sks Microfinance ($SKSMICRO) | 36.7% | -62.8% | -25.6% | 55.0% | |
| Muthoot Capital Services ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -51.9% | 23.5% | 26.9% | 20.8% | |
|---|
| S.E.Investments ($SEINV) | | 20.4% | 7.5% | -7.9% | -13.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rural Electrification Corporation ($RECLTD) | 97.1% | 97.2% | 97.3% | 96.7% | |
| Pnb Gilts ($PNBGILTS) | 91.8% | 94.0% | 96.4% | 96.4% | |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 98.7% | 96.2% | 95.5% | 94.4% | |
| IDFC Limited ($IDFC) | 85.3% | 88.1% | 89.6% | 87.0% | |
| Srei Infrastructure Finance ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | |
| |
|---|
| Median (24 companies) | 68.2% | 64.8% | 65.4% | 65.5% | |
|---|
| S.E.Investments ($SEINV) | 83.1% | 78.8% | 71.6% | 66.7% | 65.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 34.8% | 29.3% | 8.3% | 12.6% | |
| Clarus Finance & Securities ($CLARUS) | | | | 6.9% | |
| Industrial Investment Trust ($IITL) | 3.7% | 1.1% | 0.3% | 4.9% | |
| Fortune Financial Services (India) ($FORTUNEF) | 5.5% | 1.0% | 1.3% | 4.5% | |
| A.K.Capital Services ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.8% | 1.0% | 0.8% | 1.1% | |
|---|
| S.E.Investments ($SEINV) | 0.1% | 0.2% | 0.1% | 0.2% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | | 12.0% | 9.7% | |
| Shriram City Union Finance ($SHRIRAMCIT) | | 6.1% | 5.8% | 5.8% | |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 7.3% | 6.4% | 6.3% | 5.3% | |
| Rural Electrification Corporation ($RECLTD) | | | 4.7% | 5.2% | |
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | |
| |
|---|
| Median (52 companies) | 6.0% | 4.1% | 4.6% | 4.1% | |
|---|
| S.E.Investments ($SEINV) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pnb Gilts ($PNBGILTS) | 9.0x | 14.2x | 11.2x | 11.3x | |
| Fortune Financial Services (India) ($FORTUNEF) | 4.7x | 9.0x | | 10.8x | |
| Vibrant Global Capital ($VGCL) | 7.8x | 23.1x | 32.8x | 10.7x | |
| Rural Electrification Corporation ($RECLTD) | 8.1x | 8.3x | 8.0x | 7.5x | |
| Srei Infrastructure Finance ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | |
| |
|---|
| Median (39 companies) | 3.0x | 4.8x | 3.6x | 3.9x | |
|---|
| S.E.Investments ($SEINV) | 2.2x | 2.4x | 1.9x | 2.9x | 3.2x |
