Uco Bank reports 24.7% Net Income decline
12-05-2015 • About Uco Bank (
$UCOBANK) • By InTwits
Uco Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Uco Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Uco Bank ($UCOBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 122,962 | 155,970 | 177,033 | 194,794 | 213,468 | 9.6% |
| Net Income | 9,065 | 11,087 | 6,182 | 15,105 | 11,378 | -24.7% |
Balance Sheet
|
|---|
| Cash | 104,040 | 78,115 | 57,054 | 80,492 | 82,675 | 2.7% |
| Short Term Debt | 4,664 | 8,309 | 191,992 | 452,938 | 439,655 | -2.9% |
| Long Term Debt | 197,079 | 304,460 | 253,819 | 55,805 | 58,959 | 5.7% |
Cash flow
|
|---|
| Capex | 1,013 | 887 | 1,141 | 2,366 | 1,764 | -25.4% |
Ratios
|
|---|
| Revenue growth | -61.0% | 26.8% | 13.5% | 10.0% | 9.6% | |
| Net Income Margin | 7.4% | 7.1% | 3.5% | 7.8% | 5.3% | -2.4% |
| CAPEX, % of revenue | 0.8% | 0.6% | 0.6% | 1.2% | 0.8% | -0.4% |
| ROIC | 3.7% | 3.1% | 1.3% | 2.6% | 2.3% | -0.4% |
| ROE | 18.8% | 17.9% | 8.4% | 15.8% | 9.6% | -6.3% |
Revenue and profitability
Uco Bank's Revenue increased on 9.6% in FY2015.
Net Income marign decreased on 2.4 pp from 7.8% to 5.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.83%. Uco Bank's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.90%.
Return on investment
The company operates at low ROIC (2.25%) and ROE (9.57%). ROIC showed almost no change in FY2015. ROE decreased on 6.3 pp from 15.8% to 9.6% in FY2015.
Leverage (Debt)
Debt decreased slightly on 2.0% in FY2015 while cash increased on 2.7% in FY2015.
Appendix 1: Peers in Banks
Below we provide Uco 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 ($UNIONBANK) | | 26.9% | 19.5% | 15.7% | 11.5% |
| |
|---|
| Median (28 companies) | -54.5% | 29.5% | 16.2% | 10.9% | 10.8% |
|---|
| Uco Bank ($UCOBANK) | | 26.8% | 13.5% | 10.0% | 9.6% |
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 ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | 2.4% |
| |
|---|
| Median (27 companies) | 1.3% | 1.2% | 1.2% | 1.3% | 1.3% |
|---|
| Uco Bank ($UCOBANK) | 0.8% | 0.6% | 0.6% | 1.2% | 0.8% |
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 ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | |
| |
|---|
| Median (28 companies) | 7.5% | 7.6% | 6.3% | 3.4% | 5.1% |
|---|
| Uco Bank ($UCOBANK) | 3.7% | 3.1% | 1.3% | 2.6% | 2.3% |
