Axis Bank Net Income jumped on 18.0% in 2015 and Revenue jumped on 15.6%
29-04-2015 • About Axis Bank (
$AXISBANK) • By InTwits
Axis Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Axis Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 1.4%.
- CAPEX is quite volatile: 5,386 in FY2015, 6,078 in FY2014, 4,838 in FY2013, 3,966 in FY2012, 13,711 in FY2011
- The company has business model with low profitability: ROIC is at 8.8%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Axis Bank ($AXISBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 197,270 | 274,240 | 341,330 | 386,025 | 446,166 | 15.6% |
| Net Income | 33,399 | 42,198 | 52,348 | 63,101 | 74,479 | 18.0% |
Balance Sheet
|
|---|
| Cash | 138,862 | 107,029 | 147,921 | 170,414 | 198,188 | 16.3% |
| Short Term Debt | 126,899 | 152,778 | 215,763 | 187,333 | 162,944 | -13.0% |
| Long Term Debt | 262,679 | 340,717 | 441,051 | 527,392 | 843,935 | 60.0% |
Cash flow
|
|---|
| Capex | 13,711 | 3,966 | 4,838 | 6,078 | 5,386 | -11.4% |
Ratios
|
|---|
| Revenue growth | 26.2% | 39.0% | 24.5% | 13.1% | 15.6% | |
| Net Income Margin | 16.9% | 15.4% | 15.3% | 16.3% | 16.7% | 0.3% |
| CAPEX, % of revenue | 7.0% | 1.4% | 1.4% | 1.6% | 1.2% | -0.4% |
| ROIC | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% | -0.3% |
| ROE | 19.1% | 20.3% | 18.7% | 17.6% | 17.9% | 0.2% |
Revenue and profitability
The company's Revenue jumped on 15.6% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Axis Bank had CAPEX/Revenue of 1.2%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROE (17.87%) while ROIC is low (8.79%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt surged on 40.9% in FY2015 while cash surged on 16.3% in FY2015.
Appendix 1: Peers in Banks
Below you can find Axis Bank benchmarking vs. other companies in Banks 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 |
|---|
| Dcb Bank ($DCBBANK) | | 26.7% | 26.2% | 22.5% | 25.3% |
| Yes Bank ($YESBANK) | | 53.0% | 33.7% | 21.6% | 17.7% |
| Bank Of India ($BANKINDIA) | -66.6% | 30.3% | 12.4% | 18.1% | |
| Karur Vysya Bank ($KARURVYSYA) | -67.4% | 45.9% | 29.7% | 16.5% | |
| Union Bank Of India ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| |
|---|
| Median (28 companies) | -60.7% | 28.5% | 15.6% | 10.3% | 14.2% |
|---|
| Axis Bank ($AXISBANK) | | 39.0% | 24.5% | 13.1% | 15.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.3% | 1.4% | 1.4% | 2.6% | |
| Karur Vysya Bank ($KARURVYSYA) | 4.2% | 2.0% | 2.9% | 2.5% | |
| Dhanlaxmi Bank ($DHANBANK) | 6.8% | 3.0% | 1.7% | 2.2% | |
| Jammu & Kashmir Bank ($J&KBANK) | 5.6% | 1.4% | 1.3% | 2.2% | |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | 2.4% |
| |
|---|
| Median (27 companies) | 1.2% | 1.2% | 1.1% | 1.2% | 1.9% |
|---|
| Axis Bank ($AXISBANK) | 7.0% | 1.4% | 1.4% | 1.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yes Bank ($YESBANK) | 11.8% | 9.8% | 8.4% | 8.4% | 8.7% |
| Karnataka Bank ($KTKBANK) | 5.5% | 6.8% | 10.2% | 7.7% | |
| Kotak Mahindra Bank ($KOTAKBANK) | 7.8% | 6.8% | 6.5% | 7.1% | |
| Oriental Bank Of Commerce ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| Karur Vysya Bank ($KARURVYSYA) | 19.1% | 14.5% | 11.0% | 5.3% | |
| |
|---|
| Median (28 companies) | 7.0% | 6.8% | 6.0% | 3.2% | 6.0% |
|---|
| Axis Bank ($AXISBANK) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
