The numbers tell that Trigyn Technologies's growth is outstanding
30-05-2014 • About Trigyn Technologies (
$TRIGYN) • By InTwits
Trigyn Technologies is a growth stock in IT Software Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Trigyn Technologies showed fast growth in the last financial year. The company's revenue surged on 29.8% in FY2014. EBITDA also increased considerably: 92.5% for the same period.
In the last 3 years Trigyn Technologies showed fast revenue growth of 24.4% from FY2011 to FY2014 annually. EBITDA surged on 43.9% from FY2011 to FY2014 annually.
Trigyn Technologies ($TRIGYN) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 5,788 | 2,345 | 2,739 | 3,481 | 4,517 |
|---|
| Revenue growth, % | | -59.5% | 16.8% | 27.1% | 29.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 128 | 144 | 158 | 223 | 429 |
|---|
| EBITDA growth, % | | 12.5% | 9.9% | 40.8% | 92.5% |
|---|
| EBITDA margin, % | 2.21% | 6.14% | 5.77% | 6.40% | 9.49% |
|---|
| Net Income | 96 | 422 | 107 | 157 | 807 |
|---|
| Net Income margin, % | 1.65% | 18.0% | 3.92% | 4.50% | 17.9% |
|---|
| |
| CAPEX | 7 | 7 | 101 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 0.124% | 0.298% | 3.67% | 0% | 0% |
|---|
| Debt | 8 | 4 | 5 | 5 | 0 |
|---|
| Cash | 148 | 119 | 86 | 122 | 94 |
|---|
| Net Debt/EBITDA | -1.1x | -0.8x | -0.5x | -0.5x | -0.2x |
|---|
| |
| ROIC, % | 16.0% | 15.7% | 15.2% | 21.1% | 26.2% |
|---|
| ROE, % | 52.2% | 92.9% | 14.6% | 17.4% | 50.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin surged on 3.10 pp from 6.40% to 9.50% in FY2014. If we look for the longer period the company showed fast EBITDA margin growth of 3.40 pp from 6.10% in FY2011 to 9.50% in FY2014.
Trigyn Technologies shows attractive ROIC at 26.2% for the last 12 months which assumes stable development model. During the last three years it surged - it was 15.7% in FY2011. It's average ROIC for the last three years was 20.8%.
The company's Net Income margin surged on 13.4 pp from 4.50% to 17.9% in FY2014. In the longer period Trigyn Technologies showed small Net Income margin decline of 0.100 pp from 18% in FY2011 to 17.9% in FY2014.
Trigyn Technologies operates at ROE of 50.4%. It's average level of ROE for the last three years was 27.5%.
Capital expenditures (CAPEX)
In FY2014 Trigyn Technologies had CAPEX/Revenue of 0%. CAPEX/Revenue dropped on 0.298 pp from 0.298% in FY2011 to 0% in FY2014.
Leverage (Debt)
The company has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Trigyn Technologies's leverage surged on 0.58x from -0.80x in FY2011 to -0.22x in FY2014.
Valuation vs. comparable companies
The company trades at 1.9x EV/EBITDA which is 87.9% lower than 16.0x IT Software Products industry avearge calculated based on 176 companies. At the end of trading day today Trigyn Technologies traded at 1.1x P/E which is 86.8% lower than 8.7x IT Software Products peer group avearge calculated on the basis of 6 companies.
Peers in IT Software Products
Below you can find Trigyn Technologies benchmarking vs. other companies in IT Software Products 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Blue Star Infotech ($BLUESTINFO) | | -61.0% | 5.1% | 49.2% | 43.3% |
| Tata Elxsi ($TATAELXSI) | | -59.1% | 29.5% | 15.4% | 24.6% |
| Polaris Financial Technology ($POLARIS) | | -31.6% | 28.4% | 10.2% | 7.3% |
| Softsol India ($SOFTSOL) | | -21.8% | -10.4% | 9.3% | -20.4% |
| |
|---|
| Median (4 companies) | | -48.1% | 21.9% | 12.8% | 16.0% |
|---|
| Trigyn Technologies ($TRIGYN) | | -59.5% | 16.8% | 27.1% | 29.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Tata Elxsi ($TATAELXSI) | 7.6% | 11.4% | 13.8% | 11.9% | 17.6% |
| Polaris Financial Technology ($POLARIS) | 9.6% | 13.6% | 13.8% | 11.9% | 10.2% |
| Mastek ($MASTKBBPH) | 8.0% | -3.1% | 3.6% | | 9.9% |
| Blue Star Infotech ($BLUESTINFO) | 4.8% | 12.8% | 1.5% | 4.9% | 7.5% |
| |
|---|
| Median (4 companies) | 7.8% | 11.4% | 3.6% | 8.4% | 10.1% |
|---|
| Trigyn Technologies ($TRIGYN) | 2.2% | 6.1% | 5.8% | 6.4% | 9.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Tata Elxsi ($TATAELXSI) | 0.9% | 7.0% | 5.3% | 5.4% | 3.1% |
| Blue Star Infotech ($BLUESTINFO) | 0.6% | 6.0% | 1.4% | 3.1% | 2.3% |
| Polaris Financial Technology ($POLARIS) | 1.5% | 5.9% | 7.2% | 2.5% | 1.5% |
| Mastek ($MASTKBBPH) | 2.0% | 4.8% | 2.2% | | 0.0% |
| |
|---|
| Median (4 companies) | 1.3% | 6.0% | 2.5% | 4.3% | 1.9% |
|---|
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Tata Elxsi ($TATAELXSI) | 30.1% | 13.2% | 22.5% | 19.1% | 38.3% |
| Blue Star Infotech ($BLUESTINFO) | 16.8% | | | 7.1% | 16.3% |
| Polaris Financial Technology ($POLARIS) | 22.0% | 18.7% | 19.5% | 15.1% | 12.6% |
| Mastek ($MASTKBBPH) | 10.4% | -8.0% | -0.5% | 0.0% | 10.9% |
| Archana Software ($SSLFINANCE) | | | | | |
| |
|---|
| Median (7 companies) | 13.6% | 3.9% | 3.8% | 3.5% | 14.4% |
|---|
| Trigyn Technologies ($TRIGYN) | 16.0% | 15.7% | 15.2% | 21.1% | 26.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Tata Elxsi ($TATAELXSI) | 0.3x | 0.1x | 0.3x | 0.6x | -0.3x |
| Polaris Financial Technology ($POLARIS) | -0.3x | -0.4x | -0.4x | -0.3x | -0.6x |
| Mastek ($MASTKBBPH) | -0.0x | | -2.5x | | -0.8x |
| Blue Star Infotech ($BLUESTINFO) | -0.6x | -0.7x | -7.3x | 0.0x | -0.8x |
| |
|---|
| Median (4 companies) | -0.3x | -0.2x | -0.2x | 0.0x | -0.7x |
|---|
| Trigyn Technologies ($TRIGYN) | -1.1x | -0.8x | -0.5x | -0.5x | -0.2x |
