South Indian Bank reports 39.5% Net Income decline while 6.6% Revenue growth
05-05-2015 • About South Indian Bank (
$SOUTHBANK) • By InTwits
South Indian Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- South Indian Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: 18,010 in FY2015, 12,460 in FY2014, 38,367 in FY2013, 45,600 in FY2012, 18,613 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.2%
- It operates with high leverage: Net Debt/EBITDA is 6.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
South Indian Bank ($SOUTHBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26,437 | 38,297 | 47,687 | 54,112 | 57,700 | 6.6% |
| Net Income | 2,926 | 4,017 | 5,023 | 5,075 | 3,072 | -39.5% |
Balance Sheet
|
|---|
| Cash | 18,282 | 15,718 | 16,967 | 22,008 | 24,416 | 10.9% |
| Short Term Debt | 1,216 | 1,174 | 1,202 | 25,455 | 45,514 | 78.8% |
| Long Term Debt | 17,137 | 5,882 | 12,846 | 27,308 | 6,296 | -76.9% |
Cash flow
|
|---|
| Capex | 1,099 | 593 | 661 | 700 | 712 | 1.7% |
Ratios
|
|---|
| Revenue growth | -61.7% | 44.9% | 24.5% | 13.5% | 6.6% | |
| Net Income Margin | 11.1% | 10.5% | 10.5% | 9.4% | 5.3% | -4.1% |
| CAPEX, % of revenue | 4.2% | 1.5% | 1.4% | 1.3% | 1.2% | -0.1% |
| ROIC | | | | | 5.2% | 5.2% |
| ROE | 17.6% | 20.0% | 19.4% | 15.9% | 8.8% | -7.1% |
Revenue and profitability
South Indian Bank's Revenue increased on 6.6% in FY2015.
Net Income marign decreased on 4.1 pp from 9.4% to 5.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (5.23%) and ROE (8.82%). ROE decreased on 7.1 pp from 15.9% to 8.8% in FY2015.
Leverage (Debt)
Debt decreased slightly on 1.8% in FY2015 while cash jumped on 10.9% in FY2015.
Management team
South Indian Bank's CEO V G Mathew has spent 4 years at the company.
Appendix 1: Peers in Banks
Below you can find South Indian Bank benchmarking vs. other companies in Banks 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 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 ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| |
|---|
| Median (28 companies) | -58.7% | 28.5% | 15.6% | 10.3% | 14.9% |
|---|
| South Indian Bank ($SOUTHBANK) | | 44.9% | 24.5% | 13.5% | 6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.3% | 1.4% | 1.4% | 2.6% | 1.4% |
| Karur Vysya Bank ($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 ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | 2.4% |
| |
|---|
| Median (27 companies) | 1.2% | 1.2% | 1.1% | 1.2% | 1.6% |
|---|
| South Indian Bank ($SOUTHBANK) | 4.2% | 1.5% | 1.4% | 1.3% | 1.2% |
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 ($KTKBANK) | 5.5% | 6.8% | 10.2% | 7.7% | |
| Kotak Mahindra Bank ($KOTAKBANK) | 7.8% | 6.8% | 6.5% | 7.1% | 8.5% |
| Oriental Bank Of Commerce ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| |
|---|
| Median (28 companies) | 7.1% | 7.2% | 6.1% | 3.3% | 6.1% |
|---|
| South Indian Bank ($SOUTHBANK) | | | | | 5.2% |
