State Bank Of Travancore reports 1.5% revenue growth in FY2015
06-05-2015 • About State Bank Of Travancore (
$SBT) • By InTwits
State Bank Of Travancore reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- State Bank Of Travancore has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 1.4%.
- CAPEX is quite volatile: 1,771 in FY2015, 1,327 in FY2014, 1,018 in FY2013, 721 in FY2012, 655 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.1%
- It operates with high leverage: Net Debt/EBITDA is 17.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
State Bank Of Travancore ($SBT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 58,104 | 74,779 | 92,882 | 104,626 | 106,159 | 1.5% |
| Net Income | 7,277 | 5,105 | 6,150 | 3,043 | 3,355 | 10.2% |
Balance Sheet
|
|---|
| Cash | 47,096 | 47,766 | 45,440 | 44,586 | 53,399 | 19.8% |
| Short Term Debt | 11,388 | 13,520 | 14,859 | 58,085 | 27,356 | -52.9% |
| Long Term Debt | 59,676 | 78,014 | 90,486 | 28,649 | 29,279 | 2.2% |
Cash flow
|
|---|
| Capex | 655 | 721 | 1,018 | 1,327 | 1,771 | 33.5% |
Ratios
|
|---|
| Revenue growth | -57.9% | 28.7% | 24.2% | 12.6% | 1.5% | |
| Net Income Margin | 12.5% | 6.8% | 6.6% | 2.9% | 3.2% | 0.3% |
| CAPEX, % of revenue | 1.1% | 1.0% | 1.1% | 1.3% | 1.7% | 0.4% |
| ROIC | | | 6.1% | 3.5% | 4.1% | 0.6% |
| ROE | 23.1% | 13.9% | 14.9% | 6.5% | 6.3% | -0.2% |
Revenue and profitability
State Bank Of Travancore's Revenue increased slightly on 1.5% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2015. The company showed small growth in CAPEX/Revenue of 0.70 pp from 0.96% in FY2012 to 1.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (4.12%) and ROE (6.28%). ROIC increased slightly on 0.60 pp from 3.5% to 4.1% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt dropped on 34.7% in FY2015 while cash jumped on 19.8% in FY2015.
Appendix 1: Peers in Banks
Below you can find State Bank Of Travancore 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 ($UNIONBANK) | -70.8% | 26.9% | 19.5% | 15.7% | |
| |
|---|
| Median (28 companies) | -60.1% | 29.3% | 15.6% | 10.3% | 13.0% |
|---|
| State Bank Of Travancore ($SBT) | | 28.7% | 24.2% | 12.6% | 1.5% |
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 ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | 2.4% |
| |
|---|
| Median (27 companies) | 1.3% | 1.2% | 1.2% | 1.2% | 1.6% |
|---|
| State Bank Of Travancore ($SBT) | 1.1% | 1.0% | 1.1% | 1.3% | 1.7% |
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 ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| |
|---|
| Median (28 companies) | 7.1% | 7.2% | 6.2% | 3.2% | 6.0% |
|---|
| State Bank Of Travancore ($SBT) | | | 6.1% | 3.5% | 4.1% |
