Kotak Mahindra Bank reports 26.1% revenue growth in FY2015
05-05-2015 • About Kotak Mahindra Bank (
$KOTAKBANK) • By InTwits
Kotak Mahindra Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kotak Mahindra Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: 2,919 in FY2015, 4,423 in FY2014, 2,223 in FY2013, 1,854 in FY2012, 1,456 in FY2011
- The company has business model with low profitability: ROIC is at 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kotak Mahindra Bank ($KOTAKBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 109,826 | 130,007 | 159,842 | 171,222 | 215,877 | 26.1% |
| Net Income | 15,667 | 18,322 | 21,885 | 24,650 | 30,455 | 23.5% |
Balance Sheet
|
|---|
| Cash | 21,149 | 20,306 | 22,208 | 29,605 | 39,451 | 33.3% |
| Short Term Debt | 9,872 | 10,331 | 17,007 | 14,919 | 22,843 | 53.1% |
| Long Term Debt | 220,733 | 291,947 | 361,720 | 290,071 | 314,149 | 8.3% |
Cash flow
|
|---|
| Capex | 1,456 | 1,854 | 2,223 | 4,423 | 2,919 | -34.0% |
Ratios
|
|---|
| Revenue growth | -65.2% | 18.4% | 22.9% | 7.1% | 26.1% | |
| Net Income Margin | 14.3% | 14.1% | 13.7% | 14.4% | 14.1% | -0.3% |
| CAPEX, % of revenue | 1.3% | 1.4% | 1.4% | 2.6% | 1.4% | -1.2% |
| ROIC | 7.8% | 6.8% | 6.5% | 7.1% | 8.5% | 1.4% |
| ROE | 16.5% | 15.3% | 15.5% | 14.4% | 14.8% | 0.4% |
Revenue and profitability
The company's Revenue jumped on 26.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Kotak Mahindra Bank had CAPEX/Revenue of 1.4%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at good ROE (14.77%) while ROIC is low (8.52%). ROIC increased slightly on 1.4 pp from 7.1% to 8.5% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt jumped on 10.5% in FY2015 while cash surged on 33.3% in FY2015.
Appendix 1: Peers in Banks
Below we provide Kotak Mahindra 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 ($BANKINDIA) | -66.6% | 30.3% | 12.4% | 18.1% | |
| Karur Vysya Bank ($KARURVYSYA) | | 45.9% | 29.7% | 16.5% | 11.0% |
| Union Bank Of India ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| |
|---|
| Median (28 companies) | -58.7% | 29.5% | 15.6% | 10.9% | 13.0% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | | 18.4% | 22.9% | 7.1% | 26.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Karur Vysya Bank ($KARURVYSYA) | 4.2% | 2.0% | 2.9% | 2.5% | 1.7% |
| Dhanlaxmi Bank ($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 ($FEDERALBNK) | 1.3% | 1.7% | 2.3% | 1.6% | 1.4% |
| |
|---|
| Median (27 companies) | 1.2% | 1.2% | 1.1% | 1.2% | 1.6% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.3% | 1.4% | 1.4% | 2.6% | 1.4% |
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 ($KTKBANK) | 5.5% | 6.8% | 10.2% | 7.7% | |
| Oriental Bank Of Commerce ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| Karur Vysya Bank ($KARURVYSYA) | 19.1% | 14.5% | 11.0% | 5.3% | 5.7% |
| |
|---|
| Median (28 companies) | 7.0% | 7.6% | 6.0% | 3.2% | 6.0% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 7.8% | 6.8% | 6.5% | 7.1% | 8.5% |
