Veritas (India) demonstrated healthy growth over the last few years
07-06-2014 • About Veritas (India) (
$VERITAS) • By InTwits
Have you thought about Veritas (India) as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Veritas (India) showed growth in the last financial year. Veritas (India)'s revenue surged on 31.5% in FY2014. At the same time Veritas (India) well managed its profitability and showed even faster growth in EBITDA of 48.9% for the same period.
If we look for the longer period Veritas (India) showed fast revenue growth of 25.0% from FY2011 to FY2014 annually. EBITDA surged on 8.59% from FY2011 to FY2014 annually.
Veritas (India) ($VERITAS) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 17,997 | 6,157 | 7,902 | 9,142 | 12,021 |
|---|
| Revenue growth, % | | -65.8% | 28.3% | 15.7% | 31.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 78 | 307 | 165 | 264 | 393 |
|---|
| EBITDA growth, % | | 293.4% | -46.4% | 60.4% | 48.9% |
|---|
| EBITDA margin, % | 0.433% | 4.98% | 2.08% | 2.89% | 3.27% |
|---|
| Net Income | 63 | 243 | 135 | 193 | 310 |
|---|
| Net Income margin, % | 0.351% | 3.94% | 1.71% | 2.11% | 2.58% |
|---|
| |
| CAPEX | 57 | 178 | 41 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 0.316% | 2.90% | 0.515% | 0% | 0% |
|---|
| Debt | 60 | 156 | 389 | 1,159 | 1,388 |
|---|
| Cash | 84 | 64 | 55 | 157 | 124 |
|---|
| Net Debt/EBITDA | -0.3x | 0.3x | 2.0x | 3.8x | 3.2x |
|---|
| |
| ROIC, % | 15.4% | 27.5% | 10.4% | 11.9% | 12.9% |
|---|
| ROE, % | 14.7% | 26.2% | 11.7% | 14.0% | 18.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Veritas (India) showed fast EBITDA margin growth of 0.400 pp from 2.90% to 3.30% in FY2014. In the longer period EBITDA margin dropped on 1.70 pp from 5% in FY2011 to 3.30% in FY2014.
Veritas (India) shows attractive ROIC at 12.9% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 27.5% in FY2011. It's average ROIC for the last three years was 11.7%.
Net Income margin surged on 0.500 pp from 2.10% to 2.60% in FY2014. In the longer period the company's Net Income margin dropped on 1.30 pp from 3.90% in FY2011 to 2.60% in FY2014.
Veritas (India) operates at ROE of 18.2%. Average ROE for the last three years was 14.6%.
Capital expenditures (CAPEX)
In FY2014 Veritas (India) had CAPEX/Revenue of 0%. CAPEX/Revenue dropped on 2.90 pp from 2.90% in FY2011 to 0% in FY2014.
Leverage (Debt)
The company has medium debt level at 3.2x Net Debt/EBITDA to maintain high growth. In the longer period the company showed fast leverage growth of 2.92x from 0.30x in FY2011 to 3.22x in FY2014.
Peers in Consulting Services
Below we provide Veritas (India) benchmarking against other companies in Consulting Services 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Engineers India ($ENGINERSIN) | | 34.1% | 30.7% | -32.1% | -27.0% |
| |
|---|
| Median (1 company) | | 34.1% | 30.7% | -32.1% | -27.0% |
|---|
| Veritas (India) ($VERITAS) | | -65.8% | 28.3% | 15.7% | 31.5% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Engineers India ($ENGINERSIN) | 23.8% | 23.3% | 19.4% | 23.6% | 21.1% |
| |
|---|
| Median (1 company) | 23.8% | 23.3% | 19.4% | 23.6% | 21.1% |
|---|
| Veritas (India) ($VERITAS) | 0.4% | 5.0% | 2.1% | 2.9% | 3.3% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Engineers India ($ENGINERSIN) | 1.0% | 0.0% | 0.0% | 3.2% | 4.4% |
| |
|---|
| Median (1 company) | 1.0% | 0.0% | 0.0% | 3.2% | 4.4% |
|---|
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Engineers India ($ENGINERSIN) | 41.0% | 52.8% | 44.2% | 26.8% | 14.4% |
| Artefact Projects ($ARTEFACT) | | | | | |
| |
|---|
| Median (2 companies) | 41.0% | 52.8% | 44.2% | 26.8% | 14.4% |
|---|
| Veritas (India) ($VERITAS) | 15.4% | 27.5% | 10.4% | 11.9% | 12.9% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Artefact Projects ($ARTEFACT) | | 3.7x | 0.0x | 3.6x | |
| Engineers India ($ENGINERSIN) | -0.2x | -0.1x | -0.0x | -0.0x | -0.0x |
| |
|---|
| Median (2 companies) | -0.2x | 1.8x | -0.0x | 1.8x | -0.0x |
|---|
| Veritas (India) ($VERITAS) | -0.3x | 0.3x | 2.0x | 3.8x | 3.2x |
