Shriram Transport Finance Co Net Income dropped on 24.3% in 2015 and EBITDA Margin decreased on 3.8 pp from 73.2% to 69.4%
30-04-2015 • About Shriram Transport Finance Co (
$SRTRANSFIN) • By InTwits
Shriram Transport Finance Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shriram Transport Finance Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shriram Transport Finance Co ($SRTRANSFIN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 54,796 | 61,812 | 70,160 | 84,771 | 91,796 | 8.3% |
| EBITDA | 45,151 | 51,196 | 59,417 | 62,062 | 63,723 | 2.7% |
| Net Income | 12,171 | 13,088 | 14,634 | 13,579 | 10,284 | -24.3% |
Balance Sheet
|
|---|
| Cash | 10,033 | 22,157 | 39,270 | 27,314 | 18,527 | -32.2% |
| Short Term Debt | 8,023 | 34,761 | 133,429 | 182,159 | 167,916 | -7.8% |
| Long Term Debt | 127,235 | 151,603 | 200,434 | 204,145 | 299,030 | 46.5% |
Cash flow
|
|---|
| Capex | 0 | 0 | 432 | 1,174 | 452 | -61.5% |
Ratios
|
|---|
| Revenue growth | -49.6% | 12.8% | 13.5% | 20.8% | 8.3% | |
| EBITDA growth | 15.2% | 13.4% | 16.1% | 4.5% | 2.7% | |
| EBITDA Margin | 82.4% | 82.8% | 84.7% | 73.2% | 69.4% | -3.8% |
| Net Income Margin | 22.2% | 21.2% | 20.9% | 16.0% | 11.2% | -4.8% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.6% | 1.4% | 0.5% | -0.9% |
| ROE | 27.9% | 24.0% | 21.9% | 17.1% | 11.6% | -5.6% |
| Net Debt/EBITDA | 2.8x | 3.2x | 5.0x | 5.8x | 7.0x | 1.3x |
Revenue and profitability
The company's Revenue increased on 8.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.4 pp from 18.2% to 23.5% in FY2015.
Net Income marign decreased on 4.8 pp from 16.0% to 11.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Shriram Transport Finance Co's CAPEX/Revenue was 0.49% in FY2015. Shriram Transport Finance Co showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.83%.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.0x and Debt / EBITDA is 7.3x. Net Debt / EBITDA surged on 1.3x from 5.8x to 7.0x in FY2015. Debt surged on 20.9% in FY2015 while cash dropped on 32.2% in FY2015.
Management team
Umesh Govind Revankar is a Shriram Transport Finance Co's CEO. Umesh Govind Revankar has spent 6 years at the company.
Appendix 1: Peers in Finance (including NBFCs)
Below we provide Shriram Transport Finance Co 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 ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -47.1% | 23.5% | 26.9% | 19.8% | 13.3% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | | 12.8% | 13.5% | 20.8% | 8.3% |
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 ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | |
| |
|---|
| Median (24 companies) | 68.2% | 64.8% | 65.4% | 65.5% | 67.5% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 82.4% | 82.8% | 84.7% | 73.2% | 69.4% |
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 ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.8% | 1.0% | 0.8% | 0.9% | 0.7% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 0.0% | 0.0% | 0.6% | 1.4% | 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% | |
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% |
| |
|---|
| Median (52 companies) | 6.0% | 4.1% | 4.6% | 4.1% | 4.2% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | | | | | |
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 ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | |
| |
|---|
| Median (39 companies) | 2.8x | 4.8x | 3.6x | 2.9x | 5.5x |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 2.8x | 3.2x | 5.0x | 5.8x | 7.0x |
