Punjab & Sind Bank revenue increased on 7.5% in 2015

12-05-2015 • About Punjab & Sind Bank ($PSB) • By InTwits

Punjab & Sind Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

• Punjab & Sind Bank doesn't have a profitable business model yet: FY2015 ROIC is 1.3%
• The company has potentially unprofitable business model: ROIC is at 1.3%
• It operates with high leverage: Net Debt/EBITDA is 8.4x while industry average is

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Punjab & Sind Bank ($PSB) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	53,696	68,919	77,342	83,998	90,298	7.5%
Net Income	5,262	4,513	3,392	3,006	1,213	-59.6%
Balance Sheet
Cash	45,798	36,402	32,489	48,345	37,561	-22.3%
Short Term Debt	3,180	2,072	2,383	4,072	70,117	1,622.1%
Long Term Debt	89,535	81,485	25,401	16,850	13,250	-21.4%
Cash flow
Capex	248		816	582	845	45.3%
Ratios
Revenue growth	-48.3%	28.4%	12.2%	8.6%	7.5%
Net Income Margin	9.8%	6.5%	4.4%	3.6%	1.3%	-2.2%
CAPEX, % of revenue	0.5%		1.1%	0.7%	0.9%	0.2%
ROIC			4.7%	3.1%	1.3%	-1.8%
ROE	16.9%	11.8%	7.6%	6.1%	2.3%	-3.8%

Revenue and profitability

The company's Revenue increased on 7.5% in FY2015.

Net Income marign decreased on 2.2 pp from 3.6% to 1.3% in FY2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 0.94% in FY2015. Punjab & Sind Bank showed small growth in CAPEX/Revenue0.94 pp from in FY2012 to 0.94% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.89%.

Return on investment

The company operates at low ROIC (1.29%) and ROE (2.33%). ROIC decreased slightly on 1.8 pp from 3.1% to 1.3% in FY2015. ROE decreased on 3.8 pp from 6.1% to 2.3% in FY2015.

Leverage (Debt)

Debt jumped on 298% in FY2015 while cash dropped on 22.3% in FY2015.

Appendix 1: Peers in Banks

Below we provide Punjab & Sind 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 ($UNIONBANK)		26.9%	19.5%	15.7%	11.5%
Median (28 companies)	-54.5%	29.5%	16.2%	10.9%	10.8%
Punjab & Sind Bank ($PSB)		28.4%	12.2%	8.6%	7.5%

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 ($LAKSHVILAS)	4.4%	2.1%	1.4%	1.6%	2.4%
Median (27 companies)	1.3%	1.2%	1.2%	1.3%	1.3%
Punjab & Sind Bank ($PSB)	0.5%		1.1%	0.7%	0.9%

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 ($ORIENTBANK)	12.4%	7.6%	7.4%	6.7%
Median (28 companies)	7.1%	7.2%	6.3%	3.4%	5.1%
Punjab & Sind Bank ($PSB)			4.7%	3.1%	1.3%

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