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Punjab National Bank reports 10.5% revenue growth in FY2015

08-05-2015 • About Punjab National Bank ($PNB) • By InTwits

Punjab National Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Punjab National Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 1.3%.
  • CAPEX is quite volatile: 5,463 in FY2015, 4,299 in FY2014, 5,587 in FY2013, 3,853 in FY2012, 8,968 in FY2011
  • The company has potentially unprofitable business model: ROIC is at 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Punjab National Bank ($PNB) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue312,066417,349473,801496,684548,84410.5%
Net Income45,74750,25549,54236,17133,996-6.0%
Balance Sheet
Cash237,912185,076179,295224,061244,3589.1%
Short Term Debt165,033189,926164,510211,149485,520129.9%
Long Term Debt346,385426,454470,899590,333592,0480.3%
Cash flow
Capex8,9683,8535,5874,2995,46327.1%
Ratios
Revenue growth-65.2%33.7%13.5%4.8%10.5%
Net Income Margin14.7%12.0%10.5%7.3%6.2%-1.1%
CAPEX, % of revenue2.9%0.9%1.2%0.9%1.0%0.1%
ROIC10.6%8.4%6.8%4.3%3.1%-1.2%
ROE22.1%19.4%15.6%10.0%8.5%-1.5%

Revenue and profitability


The company's Revenue surged on 10.5% in FY2015.

Net Income marign decreased slightly on 1.1 pp from 7.3% to 6.2% in FY2015.

Capital expenditures (CAPEX) and working capital investments


Punjab National Bank's CAPEX/Revenue was 1.00% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 1.0%.

Return on investment


The company operates at low ROIC (3.09%) and ROE (8.48%). ROIC decreased slightly on 1.2 pp from 4.3% to 3.1% in FY2015. ROE decreased slightly on 1.5 pp from 10.0% to 8.5% in FY2015.

Leverage (Debt)


Debt surged on 34.4% in FY2015 while cash increased on 9.1% in FY2015.

Appendix 1: Peers in Banks


Below we provide Punjab National 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)-55.8%28.5%16.2%10.9%10.5%
Punjab National Bank ($PNB)33.7%13.5%4.8%10.5%


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)1.2%1.2%1.1%1.3%1.4%
Punjab National Bank ($PNB)2.9%0.9%1.2%0.9%1.0%


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)7.0%6.8%6.0%3.2%5.7%
Punjab National Bank ($PNB)10.6%8.4%6.8%4.3%3.1%


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