Indiabulls Securities Debt jumped on 232% in 2015 and Revenue jumped on 31.6%
24-04-2015 • About Indiabulls Securities (
$IBSEC) • By InTwits
Indiabulls Securities reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 64.4% in FY2015 vs. 60.8% in FY2014 vs. 32.7% in FY2011
- EBITDA Margin is quite volatile: 64.4% in FY2015, 60.8% in FY2014, 36.2% in FY2013, 16.2% in FY2012, 32.7% in FY2011
- Indiabulls Securities has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 42.0 in FY2015, 53.9 in FY2014, 33.5 in FY2013, 155 in FY2012, 36.5 in FY2011
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Indiabulls Securities ($IBSEC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,684 | 1,913 | 1,915 | 3,024 | 3,982 | 31.6% |
| EBITDA | 1,205 | 310 | 692 | 1,838 | 2,565 | 39.6% |
| Net Income | 379 | -103 | 633 | 1,016 | 1,506 | 48.2% |
Balance Sheet
|
|---|
| Cash | 341 | 399 | 509 | 1,620 | 6,894 | 325.6% |
| Short Term Debt | 2,211 | 884 | 2,222 | 5,151 | 13,841 | 168.7% |
| Long Term Debt | 6 | 5 | 8 | 9 | 3,305 | 35,506.1% |
Cash flow
|
|---|
| Capex | 37 | 155 | 34 | 54 | 42 | -22.2% |
Ratios
|
|---|
| Revenue growth | -22.1% | -48.1% | 0.1% | 58.0% | 31.6% | |
| EBITDA growth | -16.9% | -74.2% | 123.0% | 165.5% | 39.6% | |
| EBITDA Margin | 32.7% | 16.2% | 36.2% | 60.8% | 64.4% | 3.7% |
| Net Income Margin | 10.3% | -5.4% | 33.1% | 33.6% | 37.8% | 4.2% |
| CAPEX, % of revenue | 1.0% | 8.1% | 1.8% | 1.8% | 1.1% | -0.7% |
| ROE | 15.9% | -4.3% | 28.0% | 44.8% | 53.2% | 8.4% |
| Net Debt/EBITDA | 1.6x | 1.6x | 2.5x | 1.9x | 4.0x | 2.1x |
Revenue and profitability
The company's Revenue jumped on 31.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 17.3 pp from -19.1% to -1.8% in FY2015.
Net Income marign increased on 4.2 pp from 33.6% to 37.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.1%. The company showed decline in CAPEX/Revenue of 7.0 pp from 8.1% in FY2012 to 1.1% in FY2015. It's average CAPEX/Revenue for the last three years was 1.5%.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 6.7x Debt / EBITDA. Net Debt / EBITDA surged on 2.1x from 1.9x to 4.0x in FY2015. Debt jumped on 232% in FY2015 while cash surged on 326% in FY2015.
Valuation
Indiabulls Securities's trades at EV/EBITDA 7.9x and P/E 6.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 8.0x with the industry average at 4.7x.
Appendix 1: Peers in Other Financial Services
Below we provide Indiabulls Securities benchmarking against other companies in Other Financial 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intec Capital ($INTECCAP) | | | 42.5% | 34.2% | |
| Capital First ($CAPF) | -77.8% | 90.7% | 9.9% | 31.5% | |
| Centrum Capital ($CENTRUM) | -70.3% | 85.4% | -5.7% | 23.1% | |
| Crisil ($CRISIL) | 28.4% | 21.2% | 13.6% | 12.9% | |
| Icra ($ICRA) | -49.4% | 7.5% | 21.2% | 12.2% | |
| |
|---|
| Median (11 companies) | -42.1% | 10.3% | 9.9% | -0.5% | |
|---|
| Indiabulls Securities ($IBSEC) | | -48.1% | 0.1% | 58.0% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital First ($CAPF) | 67.6% | 74.3% | 68.2% | 67.6% | |
| Intec Capital ($INTECCAP) | | 78.8% | 77.3% | 66.7% | |
| Jm Financial ($JMFINANCIL) | 56.3% | 56.3% | 61.9% | 60.3% | |
| Religare Enterprises ($RELIGARE) | 19.1% | 43.2% | 57.6% | 53.8% | |
| Multi Commodity Exchange Of India ($MCX) | 53.7% | 65.8% | 62.3% | 43.8% | |
| |
|---|
| Median (11 companies) | 36.0% | 36.4% | 40.9% | 33.3% | 91.9% |
|---|
| Indiabulls Securities ($IBSEC) | 32.7% | 16.2% | 36.2% | 60.8% | 64.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Icra ($ICRA) | 2.4% | 2.0% | 2.1% | 13.2% | |
| Jm Financial ($JMFINANCIL) | 1.0% | 0.9% | 0.9% | 11.2% | |
| Lkp Finance ($LKPFIN) | 1.2% | 3.6% | 1.6% | 3.9% | |
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | 5.6% | 5.7% | 7.8% | 3.7% | |
| Multi Commodity Exchange Of India ($MCX) | 8.5% | 3.8% | 8.8% | 1.7% | |
| |
|---|
| Median (10 companies) | 2.9% | 3.6% | 1.6% | 1.7% | |
|---|
| Indiabulls Securities ($IBSEC) | 1.0% | 8.1% | 1.8% | 1.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Crisil ($CRISIL) | 60.1% | 62.5% | 53.7% | 46.4% | |
| Icra ($ICRA) | 24.5% | 20.7% | 17.0% | 20.9% | |
| Multi Commodity Exchange Of India ($MCX) | 21.9% | 35.4% | 27.2% | 9.9% | |
| Religare Enterprises ($RELIGARE) | -2.7% | 2.0% | 3.4% | 2.7% | |
| Iris Mediaworks ($IRISMEDIA) | | -1.1% | -0.2% | -0.2% | |
| |
|---|
| Median (34 companies) | 21.9% | 5.4% | 10.2% | 9.9% | |
|---|
| Indiabulls Securities ($IBSEC) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital First ($CAPF) | 9.1x | 7.5x | 9.2x | 9.1x | |
| Religare Enterprises ($RELIGARE) | 20.2x | 9.2x | 6.1x | 7.0x | |
| Iris Mediaworks ($IRISMEDIA) | 0.6x | | 11.6x | 6.1x | |
| Jm Financial ($JMFINANCIL) | 6.6x | 6.4x | 6.4x | 4.8x | |
| Intec Capital ($INTECCAP) | | 5.1x | 4.9x | 4.6x | |
| |
|---|
| Median (21 companies) | -0.0x | -0.1x | 0.7x | 0.0x | 0.0x |
|---|
| Indiabulls Securities ($IBSEC) | 1.6x | 1.6x | 2.5x | 1.9x | 4.0x |
