Motilal Oswal Financial Services Net Income surged on 263% in 2015 and Revenue jumped on 64.7%
30-04-2015 • About Motilal Oswal Financial Services (
$MOTILALOFS) • By InTwits
Motilal Oswal Financial Services reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Motilal Oswal Financial Services has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 261 in FY2015, 79.9 in FY2014, 252 in FY2013, 729 in FY2012, 643 in FY2011
- The company has business model with average profitability: ROIC is at 11.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.9x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Motilal Oswal Financial Services ($MOTILALOFS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,008 | 4,710 | 4,727 | 4,685 | 7,716 | 64.7% |
| EBITDA | 2,341 | 1,604 | 1,765 | 1,443 | 2,575 | 78.5% |
| Net Income | 1,371 | 1,039 | 1,091 | 395 | 1,436 | 263.3% |
Balance Sheet
|
|---|
| Cash | 1,104 | 929 | 226 | 488 | 925 | 89.7% |
| Short Term Debt | 0 | 487 | 29 | 10 | 5,395 | 51,627.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 3,006 | |
Cash flow
|
|---|
| Capex | 643 | 729 | 252 | 80 | 261 | 226.4% |
Ratios
|
|---|
| Revenue growth | -32.6% | -21.6% | 0.4% | -0.9% | 64.7% | |
| EBITDA growth | -15.7% | -31.5% | 10.1% | -18.3% | 78.5% | |
| EBITDA Margin | 39.0% | 34.0% | 37.3% | 30.8% | 33.4% | 2.6% |
| Net Income Margin | 22.8% | 22.1% | 23.1% | 8.4% | 18.6% | 10.2% |
| CAPEX, % of revenue | 10.7% | 15.5% | 5.3% | 1.7% | 3.4% | 1.7% |
| ROIC | | | 12.0% | 9.7% | 11.9% | 2.2% |
| ROE | 13.7% | 9.4% | 9.2% | 3.3% | 11.6% | 8.3% |
| Net Debt/EBITDA | -0.5x | -0.3x | -0.1x | -0.3x | 2.9x | 3.2x |
Revenue and profitability
The company's Revenue jumped on 64.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.58 pp from 1.5% to 0.95% in FY2015.
Net Income marign surged on 10.2 pp from 8.4% to 18.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Motilal Oswal Financial Services had CAPEX/Revenue of 3.4%. CAPEX/Revenue dropped on 12.1 pp from 15.5% in FY2012 to 3.4% in FY2015. It's average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at low ROIC (11.91%) and ROE (11.65%). ROIC increased on 2.2 pp from 9.7% to 11.9% in FY2015. ROE increased on 8.3 pp from 3.3% to 11.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 3.3x. Net Debt / EBITDA jumped on 3.2x from -0.3x to 2.9x in FY2015. Debt jumped on 80,444% in FY2015 while cash surged on 89.7% in FY2015.
Valuation
The company's trades at EV/EBITDA 19.2x and P/E 29.2x while industy averages are 10.5x and 26.1x. Motilal Oswal Financial Services's EV/(EBITDA-CAPEX) is 21.4x with the industry average at 4.7x.
Appendix 1: Peers in Finance (including NBFCs)
Below we provide Motilal Oswal Financial Services 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 ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -47.1% | 23.5% | 26.9% | 20.8% | 10.6% |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | -21.6% | 0.4% | -0.9% | 64.7% |
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 ($BAJAJHLDNG) | 98.7% | 96.2% | 95.5% | 94.4% | |
| IDFC Limited ($IDFC) | 85.3% | 88.1% | 89.6% | 87.0% | 81.7% |
| Srei Infrastructure Finance ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | |
| |
|---|
| Median (24 companies) | 69.5% | 70.0% | 67.8% | 66.4% | 69.4% |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | 39.0% | 34.0% | 37.3% | 30.8% | 33.4% |
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 ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.7% | 0.6% | 0.7% | 0.9% | 0.7% |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | 10.7% | 15.5% | 5.3% | 1.7% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 ($RECLTD) | | | 4.7% | 5.2% | |
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% |
| Sks Microfinance ($SKSMICRO) | | | | 4.1% | |
| |
|---|
| Median (52 companies) | 6.0% | 4.1% | 4.4% | 3.8% | 3.8% |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | | 12.0% | 9.7% | 11.9% |
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 ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | |
| |
|---|
| Median (39 companies) | 3.0x | 4.8x | 3.6x | 3.9x | 6.9x |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | -0.5x | -0.3x | -0.1x | -0.3x | 2.9x |
