V-Mart Retail Net Income surged on 48.5% in 2015 and Revenue surged on 25.3%
04-05-2015 • About V-Mart Retail (
$VMART) • By InTwits
V-Mart Retail reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 8.9% in FY2015 vs. 9.4% in FY2014 vs. 9.0% in FY2011
- V-Mart Retail has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 5.4%.
- CAPEX is quite volatile: 335 in FY2015, 333 in FY2014, 222 in FY2013, 136 in FY2012, 94.2 in FY2011
- The company has highly profitable business model: ROIC is at 26.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
V-Mart Retail ($VMART) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,140 | 2,819 | 3,835 | 5,750 | 7,202 | 25.3% |
| EBITDA | 194 | 291 | 402 | 542 | 637 | 17.6% |
| Net Income | 63 | 105 | 180 | 252 | 374 | 48.5% |
Balance Sheet
|
|---|
| Cash | 15 | 11 | 153 | 16 | 28 | 70.9% |
| Short Term Debt | 348 | 380 | 333 | 436 | 286 | -34.3% |
| Long Term Debt | 30 | 22 | 20 | 2 | 15 | 774.3% |
Cash flow
|
|---|
| Capex | 94 | 136 | 222 | 333 | 335 | 0.7% |
Ratios
|
|---|
| Revenue growth | -74.3% | 31.7% | 36.0% | 49.9% | 25.3% | |
| EBITDA growth | 63.7% | 50.3% | 38.1% | 34.8% | 17.6% | |
| EBITDA Margin | 9.0% | 10.3% | 10.5% | 9.4% | 8.9% | -0.6% |
| Net Income Margin | 2.9% | 3.7% | 4.7% | 4.4% | 5.2% | 0.8% |
| CAPEX, % of revenue | 4.4% | 4.8% | 5.8% | 5.8% | 4.7% | -1.1% |
| ROIC | 19.7% | 26.3% | 23.5% | 21.9% | 26.3% | 4.4% |
| ROE | 15.4% | 21.3% | 17.8% | 15.8% | 19.9% | 4.1% |
| Net Debt/EBITDA | 1.9x | 1.3x | 0.5x | 0.8x | 0.4x | -0.3x |
Revenue and profitability
V-Mart Retail's Revenue jumped on 25.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.6 pp from 7.5% to 2.9% in FY2015.
Net Income marign increased slightly on 0.81 pp from 4.4% to 5.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.7%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 5.4%.To fuel this fast growth the company invested a large share of EBITDA (52.6%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (26.29%) while ROE is a bit lower (19.92%). ROIC increased on 4.4 pp from 21.9% to 26.3% in FY2015. ROE increased on 4.1 pp from 15.8% to 19.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.3x from 0.8x to 0.4x in FY2015. Debt dropped on 31.1% in FY2015 while cash surged on 70.9% in FY2015.
Valuation
V-Mart Retail's trades at EV/EBITDA 16.0x and P/E 26.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 33.8x with the industry average at 4.7x.
Appendix 1: Peers in Department Stores
Below you can find V-Mart Retail benchmarking vs. other companies in Department Stores 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pantaloons Fashion & Retail ($PFRL) | -99.4% | 36.3% | 7,273.1% | 29.3% | |
| Trent ($TRENT) | -45.4% | 22.1% | 15.6% | 9.4% | |
| Future Market Networks ($FMNL) | -42.8% | 58.6% | -3.8% | 1.1% | |
| |
|---|
| Median (3 companies) | -45.4% | 36.3% | 15.6% | 9.4% | |
|---|
| V-Mart Retail ($VMART) | | 31.7% | 36.0% | 49.9% | 25.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Future Market Networks ($FMNL) | 12.5% | 25.1% | | 18.4% | |
| Pantaloons Fashion & Retail ($PFRL) | 1.0% | 2.5% | 5.5% | 2.1% | |
| Trent ($TRENT) | 1.5% | -2.3% | -0.4% | 0.7% | |
| |
|---|
| Median (3 companies) | 1.3% | 2.5% | 2.6% | 2.1% | 31.2% |
|---|
| V-Mart Retail ($VMART) | 9.0% | 10.3% | 10.5% | 9.4% | 8.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trent ($TRENT) | 12.1% | 8.8% | 5.4% | 5.8% | |
| Pantaloons Fashion & Retail ($PFRL) | 0.0% | 0.0% | 2.3% | 5.7% | |
| |
|---|
| Median (2 companies) | 6.1% | 8.8% | 3.9% | 5.8% | |
|---|
| V-Mart Retail ($VMART) | 4.4% | 4.8% | 5.8% | 5.8% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trent ($TRENT) | -0.8% | -6.2% | -3.5% | -2.6% | |
| Pantaloons Fashion & Retail ($PFRL) | | 33.2% | 1.3% | -3.6% | |
| Rei Six Ten Retail ($REISIXTEN) | 31.2% | 1.2% | -3.4% | | |
| Future Market Networks ($FMNL) | | 2.5% | | | |
| Store One Retail India ($STOREONE) | | | | | |
| |
|---|
| Median (5 companies) | 15.2% | 1.8% | -3.4% | -3.1% | |
|---|
| V-Mart Retail ($VMART) | 19.7% | 26.3% | 23.5% | 21.9% | 26.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Future Market Networks ($FMNL) | 2.2x | 14.3x | | 37.1x | |
| Pantaloons Fashion & Retail ($PFRL) | -0.3x | -0.1x | 23.9x | 30.0x | |
| Trent ($TRENT) | 9.5x | | | 16.6x | |
| |
|---|
| Median (3 companies) | 1.2x | -0.1x | 11.8x | 30.0x | 0.0x |
|---|
| V-Mart Retail ($VMART) | 1.9x | 1.3x | 0.5x | 0.8x | 0.4x |
