Delta Corp Net Income dropped on 164% in 2015 and EBITDA Margin decreased on 4.1 pp from 27.0% to 22.9%
17-04-2015 • About Delta Corp (
$DELTACORP) • By InTwits
Delta Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Delta Corp is a company in decline: FY2015 revenue growth was -46.3%, 5 years revenue CAGR was -3.3%
- EBITDA Margin is quite volatile: 22.9% in FY2015, 27.0% in FY2014, 23.7% in FY2013, 27.7% in FY2012, 49.3% in FY2011
- Delta Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 44.2%. At the same time it's a lot of higher than industry average of 6.3%.
- CAPEX is quite volatile: 156 in FY2015, 779 in FY2014, 3,162 in FY2013, 3,485 in FY2012, 1,202 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Delta Corp ($DELTACORP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,760 | 3,649 | 4,254 | 5,586 | 3,000 | -46.3% |
| EBITDA | 1,853 | 1,010 | 1,008 | 1,508 | 688 | -54.4% |
| Net Income | 1,657 | 501 | 293 | 353 | -228 | -164.5% |
Balance Sheet
|
|---|
| Cash | 619 | 1,299 | 460 | 352 | 203 | -42.4% |
| Short Term Debt | 899 | 1,324 | 1,835 | 1,117 | 1,132 | 1.4% |
| Long Term Debt | 1,141 | 3,230 | 3,015 | 2,407 | 2,239 | -7.0% |
Cash flow
|
|---|
| Capex | 1,202 | 3,485 | 3,162 | 779 | 156 | -80.0% |
Ratios
|
|---|
| Revenue growth | 5.9% | -2.9% | 16.6% | 31.3% | -46.3% | |
| EBITDA growth | 285.6% | -45.5% | -0.2% | 49.5% | -54.4% | |
| EBITDA Margin | 49.3% | 27.7% | 23.7% | 27.0% | 22.9% | -4.1% |
| Net Income Margin | 44.1% | 13.7% | 6.9% | 6.3% | -7.6% | -13.9% |
| CAPEX, % of revenue | 32.0% | 95.5% | 74.3% | 14.0% | 5.2% | -8.8% |
| ROIC | 24.3% | 8.5% | 6.7% | 10.1% | 2.9% | -7.2% |
| ROE | 38.6% | 7.2% | 3.8% | 4.6% | -3.0% | -7.5% |
| Net Debt/EBITDA | 0.8x | 3.2x | 4.4x | 2.1x | 4.6x | 2.5x |
Revenue and profitability
Delta Corp's Revenue dropped on 46.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.1 pp from 27.0% to 22.9% in FY2015.
Net Income marign dropped on 13.9 pp from 6.3% to -7.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Delta Corp's CAPEX/Revenue was 5.2% in FY2015. The company showed big decline in CAPEX/Revenue of 90.3 pp from 95.5% in FY2012 to 5.2% in FY2015. Average CAPEX/Revenue for the last three years was 31.2%.
Return on investment
The company operates at low but positive ROIC (2.91%) and negative ROE (-2.96%). ROIC decreased on 7.2 pp from 10.1% to 2.9% in FY2015. ROE decreased on 7.5 pp from 4.6% to -3.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is 4.9x. Net Debt / EBITDA surged on 2.5x from 2.1x to 4.6x in FY2015. Debt decreased on 4.3% in FY2015 while cash dropped on 42.4% in FY2015.
Appendix 1: Peers in Misc.Commercial Services
Below we provide Delta Corp benchmarking against other companies in Misc.Commercial 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, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trinity Tradelink Limited ($TRITRADE) | -95.1% | | | 408,047.0% | |
| Centum Electronics ($CENTUM) | -55.9% | 1.4% | 9.8% | 50.4% | |
| Ganesha Ecosphere ($GANECOS) | -60.9% | 32.3% | 12.9% | 14.7% | |
| Crest Ventures Limited ($CREST) | -10.7% | -39.7% | 9.2% | -0.8% | |
| |
|---|
| Median (4 companies) | -58.4% | 1.4% | 9.8% | 32.6% | |
|---|
| Delta Corp ($DELTACORP) | | -2.9% | 16.6% | 31.3% | -46.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Crest Ventures Limited ($CREST) | -1.2% | 4.9% | 13.4% | 21.8% | |
| Centum Electronics ($CENTUM) | 11.9% | 12.8% | 16.6% | 20.6% | |
| Ganesha Ecosphere ($GANECOS) | 12.0% | 10.8% | 11.1% | 11.0% | |
| Trinity Tradelink Limited ($TRITRADE) | -1.3% | | | 0.9% | |
| |
|---|
| Median (4 companies) | 5.3% | 10.8% | 13.4% | 15.8% | |
|---|
| Delta Corp ($DELTACORP) | 49.3% | 27.7% | 23.7% | 27.0% | 22.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ganesha Ecosphere ($GANECOS) | 11.0% | 6.9% | 23.4% | 15.4% | |
| Centum Electronics ($CENTUM) | 5.0% | 5.5% | 2.4% | 6.7% | |
| Crest Ventures Limited ($CREST) | 4.5% | 5.2% | 4.0% | 4.4% | |
| Trinity Tradelink Limited ($TRITRADE) | 0.0% | | 0.0% | 0.0% | |
| |
|---|
| Median (4 companies) | 4.7% | 5.5% | 3.2% | 5.6% | |
|---|
| Delta Corp ($DELTACORP) | 32.0% | 95.5% | 74.3% | 14.0% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Centum Electronics ($CENTUM) | 10.9% | 10.6% | 16.9% | 35.8% | |
| Ganesha Ecosphere ($GANECOS) | 20.8% | 18.6% | 15.8% | 13.2% | |
| Trinity Tradelink Limited ($TRITRADE) | -52.6% | -138.6% | -242.1% | 5.1% | |
| Greencrest Financial Services ($GREENCREST) | | | 1.8% | 2.2% | |
| Lifeline Drugs & Pharma ($LIFELINE) | | 3.3% | 2.8% | 1.2% | |
| |
|---|
| Median (11 companies) | 11.4% | 4.9% | 5.6% | 5.1% | |
|---|
| Delta Corp ($DELTACORP) | 24.3% | 8.5% | 6.7% | 10.1% | 2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ganesha Ecosphere ($GANECOS) | 2.1x | 2.1x | 3.6x | 3.9x | |
| Crest Ventures Limited ($CREST) | | -1.8x | 0.2x | 2.8x | |
| Centum Electronics ($CENTUM) | 2.0x | 1.9x | 1.2x | 0.5x | |
| Sawaca Business Machines ($SAWABUSI) | -2.3x | | | -1.0x | |
| Lifeline Drugs & Pharma ($LIFELINE) | | -0.7x | -0.5x | -1.1x | |
| |
|---|
| Median (6 companies) | 2.0x | 1.6x | 0.9x | -0.3x | |
|---|
| Delta Corp ($DELTACORP) | 0.8x | 3.2x | 4.4x | 2.1x | 4.6x |
