Dcb Bank reports 26.3% Net Income growth and 25.3% Revenue growth
14-04-2015 • About Dcb Bank (
$DCBBANK) • By InTwits
Dcb Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dcb Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: 298 in FY2015, 199 in FY2014, 723 in FY2013, 739 in FY2012, 106 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.0%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dcb Bank ($DCBBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,473 | 8,202 | 10,348 | 12,673 | 15,883 | 25.3% |
| Net Income | 214 | 551 | 1,021 | 1,514 | 1,912 | 26.3% |
Balance Sheet
|
|---|
| Cash | 4,045 | 4,075 | 3,788 | 5,051 | 6,337 | 25.5% |
| Short Term Debt | 1,489 | 1,513 | 1,596 | 2,252 | 20,969 | 831.1% |
| Long Term Debt | 11,209 | 13,442 | 22,916 | 8,602 | 4,679 | -45.6% |
Cash flow
|
|---|
| Capex | 106 | 739 | 723 | 199 | 298 | 49.6% |
Ratios
|
|---|
| Revenue growth | -66.5% | 26.7% | 26.2% | 22.5% | 25.3% | |
| Net Income Margin | 3.3% | 6.7% | 9.9% | 11.9% | 12.0% | 0.1% |
| CAPEX, % of revenue | 1.6% | 9.0% | 7.0% | 1.6% | 1.9% | 0.3% |
| ROIC | | | 3.4% | 5.1% | 6.0% | 0.9% |
| ROE | 3.5% | 7.4% | 10.9% | 14.0% | 13.9% | -0.1% |
Revenue and profitability
The company's Revenue jumped on 25.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in FY2015. CAPEX/Revenue decreased on 7.1 pp from 9.0% in FY2012 to 1.9% in FY2015. Average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at good ROE (13.94%) while ROIC is low (6.02%). ROIC increased slightly on 0.89 pp from 5.1% to 6.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt surged on 136% in FY2015 while cash surged on 25.5% in FY2015.
Management team
Murali M Natrajan is a the company's CEO. Murali M Natrajan has spent 9 years at the company.
Appendix 1: Peers in Banks
Below we provide Dcb Bank benchmarking against other companies in Banks 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yes Bank ($YESBANK) | -75.9% | 53.0% | 33.7% | 21.6% | |
| Bank Of India ($BANKINDIA) | -66.6% | 30.3% | 12.4% | 18.1% | |
| Karur Vysya Bank ($KARURVYSYA) | -67.4% | 45.9% | 29.7% | 16.5% | |
| Union Bank Of India ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| United Bank Of India ($UNITEDBNK) | -59.5% | 24.6% | 18.7% | 14.4% | |
| |
|---|
| Median (28 companies) | -60.1% | 29.5% | 15.6% | 10.3% | |
|---|
| Dcb Bank ($DCBBANK) | | 26.7% | 26.2% | 22.5% | 25.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.3% | 1.4% | 1.4% | 2.6% | |
| Karur Vysya Bank ($KARURVYSYA) | 4.2% | 2.0% | 2.9% | 2.5% | |
| Dhanlaxmi Bank ($DHANBANK) | 6.8% | 3.0% | 1.7% | 2.2% | |
| Jammu & Kashmir Bank ($J&KBANK) | 5.6% | 1.4% | 1.3% | 2.2% | |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | |
| |
|---|
| Median (27 companies) | 1.2% | 1.2% | 1.1% | 1.2% | |
|---|
| Dcb Bank ($DCBBANK) | 1.6% | 9.0% | 7.0% | 1.6% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Axis Bank ($AXISBANK) | 10.2% | 9.6% | 8.9% | 9.1% | |
| Yes Bank ($YESBANK) | 11.8% | 9.8% | 8.4% | 8.4% | |
| Karnataka Bank ($KTKBANK) | 5.5% | 6.8% | 10.2% | 7.7% | |
| Kotak Mahindra Bank ($KOTAKBANK) | 7.8% | 6.8% | 6.5% | 7.1% | |
| Oriental Bank Of Commerce ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| |
|---|
| Median (28 companies) | 7.1% | 7.2% | 6.3% | 3.2% | |
|---|
| Dcb Bank ($DCBBANK) | | | 3.4% | 5.1% | 6.0% |
