Karur Vysya Bank reports 11.0% revenue growth in FY2015
30-04-2015 • About Karur Vysya Bank (
$KARURVYSYA) • By InTwits
Karur Vysya Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Karur Vysya Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 1.4%.
- CAPEX is quite volatile: 2,238 in FY2015, 1,935 in FY2014, 5,851 in FY2013, 10,097 in FY2012, 5,450 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Karur Vysya Bank ($KARURVYSYA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,814 | 36,203 | 46,943 | 54,672 | 60,713 | 11.0% |
| Net Income | 4,156 | 5,017 | 5,503 | 4,296 | 4,643 | 8.1% |
Balance Sheet
|
|---|
| Cash | 16,798 | 19,209 | 16,286 | 25,462 | 26,929 | 5.8% |
| Short Term Debt | 1,977 | 2,242 | 2,319 | 14,336 | 5,042 | -64.8% |
| Long Term Debt | 5,701 | 24,724 | 40,623 | 1,499 | 6,033 | 302.5% |
Cash flow
|
|---|
| Capex | 1,032 | 731 | 1,342 | 1,380 | 1,028 | -25.5% |
Ratios
|
|---|
| Revenue growth | -67.4% | 45.9% | 29.7% | 16.5% | 11.0% | |
| Net Income Margin | 16.7% | 13.9% | 11.7% | 7.9% | 7.6% | -0.2% |
| CAPEX, % of revenue | 4.2% | 2.0% | 2.9% | 2.5% | 1.7% | -0.8% |
| ROIC | 19.1% | 14.5% | 11.0% | 5.3% | 5.7% | 0.4% |
| ROE | 22.1% | 20.7% | 19.0% | 13.4% | 12.3% | -1.1% |
Revenue and profitability
Karur Vysya Bank's Revenue surged on 11.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROE (12.26%) while ROIC is low (5.69%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.1 pp from 13.4% to 12.3% in FY2015.
Leverage (Debt)
Debt dropped on 30.1% in FY2015 while cash increased on 5.8% in FY2015.
Management team
The company's CEO Krishnamoorthy Venkataraman has spent 7 years at the company.
Appendix 1: Peers in Banks
Below we provide Karur Vysya Bank benchmarking against other companies in Banks 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 |
|---|
| 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 ($BANKINDIA) | -66.6% | 30.3% | 12.4% | 18.1% | |
| Union Bank Of India ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| United Bank Of India ($UNITEDBNK) | -59.5% | 24.6% | 18.7% | 14.4% | |
| |
|---|
| Median (28 companies) | -60.1% | 28.5% | 15.6% | 10.3% | 14.9% |
|---|
| Karur Vysya Bank ($KARURVYSYA) | | 45.9% | 29.7% | 16.5% | 11.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.3% | 1.4% | 1.4% | 2.6% | |
| Dhanlaxmi Bank ($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% |
| Federal Bank ($FEDERALBNK) | 1.3% | 1.7% | 2.3% | 1.6% | 1.4% |
| |
|---|
| Median (27 companies) | 1.2% | 1.2% | 1.1% | 1.2% | 1.7% |
|---|
| Karur Vysya Bank ($KARURVYSYA) | 4.2% | 2.0% | 2.9% | 2.5% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Axis Bank ($AXISBANK) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
| Yes Bank ($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 ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| |
|---|
| Median (28 companies) | 7.0% | 6.8% | 6.0% | 3.2% | 6.1% |
|---|
| Karur Vysya Bank ($KARURVYSYA) | 19.1% | 14.5% | 11.0% | 5.3% | 5.7% |
