IDFC Limited Debt jumped on 20.1% in 2015 and Revenue jumped on 10.6%
30-04-2015 • About IDFC Limited (
$IDFC) • By InTwits
IDFC Limited reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IDFC Limited has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 3.4%
- It operates with high leverage: Net Debt/EBITDA is 6.9x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IDFC Limited ($IDFC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 49,330 | 64,350 | 81,484 | 87,900 | 97,225 | 10.6% |
| EBITDA | 42,065 | 56,673 | 73,038 | 76,489 | 79,426 | 3.8% |
| Net Income | 12,817 | 15,540 | 18,362 | 18,027 | 17,070 | -5.3% |
Balance Sheet
|
|---|
| Cash | 5,622 | 6,981 | 2,627 | 3,904 | 3,001 | -23.1% |
| Short Term Debt | 16,870 | 73,510 | 38,694 | 64,643 | 120,858 | 87.0% |
| Long Term Debt | 267,861 | 298,372 | 368,033 | 393,201 | 429,187 | 9.2% |
Cash flow
|
|---|
| Capex | 525 | 90 | 90 | 165 | 441 | 166.7% |
Ratios
|
|---|
| Revenue growth | -58.7% | 30.4% | 26.6% | 7.9% | 10.6% | |
| EBITDA growth | 22.9% | 34.7% | 28.9% | 4.7% | 3.8% | |
| EBITDA Margin | 85.3% | 88.1% | 89.6% | 87.0% | 81.7% | -5.3% |
| Net Income Margin | 26.0% | 24.1% | 22.5% | 20.5% | 17.6% | -3.0% |
| CAPEX, % of revenue | 1.1% | 0.1% | 0.1% | 0.2% | 0.5% | 0.3% |
| ROIC | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% | -0.9% |
| ROE | 14.3% | 13.3% | 14.1% | 12.6% | 10.6% | -2.0% |
| Net Debt/EBITDA | 6.6x | 6.4x | 5.5x | 5.9x | 6.9x | 1.0x |
Revenue and profitability
The company's Revenue surged on 10.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.1 pp from 10.3% to 13.4% in FY2015.
Net Income marign decreased on 3.0 pp from 20.5% to 17.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.45%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.25%.
Return on investment
The company operates at low ROIC (3.43%) and ROE (10.56%). ROIC decreased slightly on 0.92 pp from 4.3% to 3.4% in FY2015. ROE decreased slightly on 2.0 pp from 12.6% to 10.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.9x and Debt / EBITDA is 6.9x. Net Debt / EBITDA jumped on 1.0x from 5.9x to 6.9x in FY2015. Debt surged on 20.1% in FY2015 while cash dropped on 23.1% in FY2015.
Appendix 1: Peers in Finance (including NBFCs)
Below we provide IDFC Limited benchmarking against other companies in Finance (including NBFCs) 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 |
|---|
| 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 ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -47.1% | 23.2% | 24.6% | 20.8% | 13.3% |
|---|
| IDFC Limited ($IDFC) | | 30.4% | 26.6% | 7.9% | 10.6% |
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% | 96.1% |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 98.7% | 96.2% | 95.5% | 94.4% | |
| Srei Infrastructure Finance ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | |
| Bajaj Finserv ($BAJAJFINSV) | 74.8% | | 77.2% | 74.2% | |
| |
|---|
| Median (24 companies) | 68.2% | 64.8% | 65.4% | 65.5% | 67.5% |
|---|
| IDFC Limited ($IDFC) | 85.3% | 88.1% | 89.6% | 87.0% | 81.7% |
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 ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.8% | 1.0% | 0.8% | 1.1% | 0.7% |
|---|
| IDFC Limited ($IDFC) | 1.1% | 0.1% | 0.1% | 0.2% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | | 12.0% | 9.7% | 11.9% |
| Shriram City Union Finance ($SHRIRAMCIT) | | 6.1% | 5.8% | 5.8% | 5.7% |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 7.3% | 6.4% | 6.3% | 5.3% | 4.2% |
| Rural Electrification Corporation ($RECLTD) | | | 4.7% | 5.2% | |
| Sks Microfinance ($SKSMICRO) | | | | 4.1% | |
| |
|---|
| Median (52 companies) | 7.3% | 3.6% | 4.4% | 3.8% | 5.0% |
|---|
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pnb Gilts ($PNBGILTS) | 9.0x | 14.2x | 11.2x | 11.3x | 8.8x |
| Fortune Financial Services (India) ($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 ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | |
| |
|---|
| Median (39 companies) | 2.6x | 4.4x | 3.6x | 2.9x | 5.5x |
|---|
| IDFC Limited ($IDFC) | 6.6x | 6.4x | 5.5x | 5.9x | 6.9x |
