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Il&Fs Investment Managers revenue decreased on 6.2% in 2015 while EBITDA Margin increased slightly on 1.5 pp from 54.0% to 55.5%

05-05-2015 • About Il&Fs Investment Managers ($IVC) • By InTwits

Il&Fs Investment Managers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Il&Fs Investment Managers is a company in decline: FY2015 revenue growth was -6.2%, 5 years revenue CAGR was -3.2%
  • Il&Fs Investment Managers has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
  • It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Il&Fs Investment Managers ($IVC) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue2,0122,2062,2332,2252,086-6.2%
EBITDA1,3121,1841,2351,2001,157-3.6%
Net Income6907357667257300.7%
Balance Sheet
Cash1517311167384130.5%
Short Term Debt31335827200
Long Term Debt536256000
Cash flow
Capex277961195.1%
Ratios
Revenue growth-18.2%9.6%1.2%-0.4%-6.2%
EBITDA growth15.8%-9.8%4.4%-2.8%-3.6%
EBITDA Margin65.2%53.7%55.3%54.0%55.5%1.5%
Net Income Margin34.3%33.3%34.3%32.6%35.0%2.4%
CAPEX, % of revenue1.4%0.3%0.4%0.3%0.5%0.3%
ROE44.4%35.8%29.6%23.8%21.1%-2.6%
Net Debt/EBITDA0.6x0.5x-0.0x-0.1x-0.3x-0.2x

Revenue and profitability


Il&Fs Investment Managers's Revenue decreased on 6.2% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.5 pp from 54.0% to 55.5% in FY2015.

Net Income marign increased on 2.4 pp from 32.6% to 35.0% in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 the company had CAPEX/Revenue of 0.55%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.40%.

Leverage (Debt)


The company has no debt. Cash surged on 131% in FY2015.

Valuation


The company's trades at EV/EBITDA 5.2x and P/E 8.8x while industy averages are 10.5x and 26.1x.

Appendix 1: Peers in Asset Management Cos.


Below you can find Il&Fs Investment Managers benchmarking vs. other companies in Asset Management Cos. 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.