Cholamandalam Investment And Finance Company Net Income jumped on 20.6% in 2015 and Revenue surged on 13.3%
24-04-2015 • About Cholamandalam Investment And Finance Company (
$CHOLAFIN) • By InTwits
Cholamandalam Investment And Finance Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cholamandalam Investment And Finance Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 2.2%.
- CAPEX is quite volatile: 3,708 in FY2015, 8,866 in FY2014, 10,143 in FY2013, 7,049 in FY2012, 2,306 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.3%
- It operates with high leverage: Net Debt/EBITDA is 7.2x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cholamandalam Investment And Finance Company ($CHOLAFIN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,045 | 17,839 | 25,702 | 32,794 | 37,149 | 13.3% |
| EBITDA | 7,067 | 12,490 | 18,884 | 23,537 | 26,546 | 12.8% |
| Net Income | 846 | 1,690 | 3,079 | 3,683 | 4,441 | 20.6% |
Balance Sheet
|
|---|
| Cash | 524 | 2,086 | 2,908 | 6,266 | 3,335 | -46.8% |
| Short Term Debt | 10,667 | 42,896 | 69,699 | 82,422 | 70,257 | -14.8% |
| Long Term Debt | 56,155 | 71,546 | 82,987 | 98,330 | 124,245 | 26.4% |
Cash flow
|
|---|
| Capex | 355 | 317 | 360 | 269 | 311 | 15.6% |
Ratios
|
|---|
| Revenue growth | -73.7% | 48.1% | 44.1% | 27.6% | 13.3% | |
| EBITDA growth | 29.2% | 76.7% | 51.2% | 24.6% | 12.8% | |
| EBITDA Margin | 58.7% | 70.0% | 73.5% | 71.8% | 71.5% | -0.3% |
| Net Income Margin | 7.0% | 9.5% | 12.0% | 11.2% | 12.0% | 0.7% |
| CAPEX, % of revenue | 2.9% | 1.8% | 1.4% | 0.8% | 0.8% | 0.0% |
| ROIC | | 2.8% | 3.2% | 3.2% | 3.3% | 0.1% |
| ROE | 11.1% | 13.7% | 18.3% | 17.4% | 17.8% | 0.4% |
| Net Debt/EBITDA | 9.4x | 9.0x | 7.9x | 7.4x | 7.2x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 13.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased slightly on 0.73 pp from 11.2% to 12.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.84%. The company showed small CAPEX/Revenue decline of 0.94 pp from 1.8% in FY2012 to 0.84% in FY2015. For the last three years the average CAPEX/Revenue was 1.0%.
Return on investment
The company operates at good ROE (17.79%) while ROIC is low (3.30%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 7.2x Net Debt / EBITDA and 7.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 7.4x to 7.2x in FY2015. Debt increased on 7.6% in FY2015 while cash dropped on 46.8% in FY2015.
Appendix 1: Peers in Finance (including NBFCs)
Below you can find Cholamandalam Investment And Finance Company 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 ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -51.4% | 23.2% | 24.4% | 19.8% | 0.6% |
|---|
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | | 48.1% | 44.1% | 27.6% | 13.3% |
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 ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | |
| |
|---|
| Median (24 companies) | 69.5% | 64.8% | 65.4% | 65.5% | 66.3% |
|---|
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | 58.7% | 70.0% | 73.5% | 71.8% | 71.5% |
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 ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.7% | 0.6% | 0.7% | 1.1% | 0.7% |
|---|
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | 2.9% | 1.8% | 1.4% | 0.8% | 0.8% |
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 ($M&MFIN) | 7.3% | 6.4% | 6.3% | 5.3% | 4.2% |
| Rural Electrification Corporation ($RECLTD) | | | 4.7% | 5.2% | |
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | |
| |
|---|
| Median (52 companies) | 6.0% | 4.6% | 4.7% | 4.2% | 4.2% |
|---|
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | | 2.8% | 3.2% | 3.2% | 3.3% |
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 ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | |
| |
|---|
| Median (39 companies) | 2.6x | 4.4x | 3.6x | 2.9x | 5.1x |
|---|
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | 9.4x | 9.0x | 7.9x | 7.4x | 7.2x |
