Capital First Net Income surged on 117% in 2015 while EBITDA Margin decreased slightly on 1.0 pp from 67.6% to 66.6%
13-05-2015 • About Capital First (
$CAPF) • By InTwits
Capital First reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Capital First has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 50.3 in FY2015, 49.3 in FY2014, 104 in FY2013, 224 in FY2012, 67.3 in FY2011
- It operates with high leverage: Net Debt/EBITDA is 7.7x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Capital First ($CAPF) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,850 | 7,343 | 8,072 | 10,614 | 14,419 | 35.8% |
| EBITDA | 2,604 | 5,454 | 5,504 | 7,179 | 9,605 | 33.8% |
| Net Income | 491 | 1,058 | 631 | 526 | 1,143 | 117.1% |
Balance Sheet
|
|---|
| Cash | 3,454 | 5,056 | 11,713 | 19,929 | 10,370 | -48.0% |
| Short Term Debt | 15,632 | 18,685 | 18,259 | 29,353 | 37,525 | 27.8% |
| Long Term Debt | 11,414 | 27,203 | 44,215 | 55,701 | 47,226 | -15.2% |
Cash flow
|
|---|
| Capex | 67 | 224 | 104 | 49 | 50 | 2.0% |
Ratios
|
|---|
| Revenue growth | -77.8% | 90.7% | 9.9% | 31.5% | 35.8% | |
| EBITDA growth | 61.9% | 109.4% | 0.9% | 30.4% | 33.8% | |
| EBITDA Margin | 67.6% | 74.3% | 68.2% | 67.6% | 66.6% | -1.0% |
| Net Income Margin | 12.8% | 14.4% | 7.8% | 5.0% | 7.9% | 3.0% |
| CAPEX, % of revenue | 1.7% | 3.1% | 1.3% | 0.5% | 0.3% | -0.1% |
| ROE | 6.8% | 13.4% | 7.0% | 4.9% | 8.3% | 3.4% |
| Net Debt/EBITDA | 9.1x | 7.5x | 9.2x | 9.1x | 7.7x | -1.3x |
Revenue and profitability
Capital First's Revenue surged on 35.8% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.8 pp from 9.8% to 11.7% in FY2015.
Net Income marign increased on 3.0 pp from 5.0% to 7.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.35%. Capital First showed decline in CAPEX/Revenue of 2.7 pp from 3.1% in FY2012 to 0.35% in FY2015. It's average CAPEX/Revenue for the last three years was 0.70%.
Leverage (Debt)
Debt level is 7.7x Net Debt / EBITDA and 8.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 9.1x to 7.7x in FY2015. Debt showed almost no change in FY2015 while cash dropped on 48.0% in FY2015.
Valuation
The company's trades at EV/EBITDA 11.5x and P/E 31.9x while industy averages are 10.5x and 26.1x. Capital First's EV/(EBITDA-CAPEX) is 11.6x with the industry average at 4.7x.
Appendix 1: Peers in Other Financial Services
Below we provide Capital First benchmarking against other companies in Other Financial Services 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 |
|---|
| Indiabulls Securities ($IBSEC) | | -48.1% | 0.1% | 58.0% | 31.6% |
| Intec Capital ($INTECCAP) | | | 42.5% | 34.2% | |
| Centrum Capital ($CENTRUM) | -70.3% | 85.4% | -5.7% | 23.1% | |
| Crisil ($CRISIL) | 28.4% | 21.2% | 13.6% | 12.9% | |
| Icra ($ICRA) | -49.4% | 7.5% | 21.2% | 12.2% | |
| |
|---|
| Median (11 companies) | -45.8% | 2.5% | 8.1% | -0.5% | 49.0% |
|---|
| Capital First ($CAPF) | | 90.7% | 9.9% | 31.5% | 35.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intec Capital ($INTECCAP) | | 78.8% | 77.3% | 66.7% | |
| Indiabulls Securities ($IBSEC) | 32.7% | 16.2% | 36.2% | 60.8% | 64.4% |
| Jm Financial ($JMFINANCIL) | 56.3% | 56.3% | 61.9% | 60.3% | |
| Religare Enterprises ($RELIGARE) | 19.1% | 43.2% | 57.6% | 53.8% | |
| Multi Commodity Exchange Of India ($MCX) | 53.7% | 65.8% | 62.3% | 43.8% | |
| |
|---|
| Median (11 companies) | 33.2% | 33.5% | 36.2% | 33.3% | 30.1% |
|---|
| Capital First ($CAPF) | 67.6% | 74.3% | 68.2% | 67.6% | 66.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Icra ($ICRA) | 2.4% | 2.0% | 2.1% | 13.2% | |
| Jm Financial ($JMFINANCIL) | 1.0% | 0.9% | 0.9% | 11.2% | |
| Lkp Finance ($LKPFIN) | 1.2% | 3.6% | 1.6% | 3.9% | 1.1% |
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | 5.6% | 5.7% | 7.8% | 3.7% | |
| Indiabulls Securities ($IBSEC) | 1.0% | 8.1% | 1.8% | 1.8% | 1.1% |
| |
|---|
| Median (10 companies) | 2.9% | 3.8% | 1.6% | 1.8% | 1.1% |
|---|
| Capital First ($CAPF) | 1.7% | 3.1% | 1.3% | 0.5% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Crisil ($CRISIL) | 60.1% | 62.5% | 53.7% | 46.4% | |
| Icra ($ICRA) | 24.5% | 20.7% | 17.0% | 20.9% | |
| Multi Commodity Exchange Of India ($MCX) | 21.9% | 35.4% | 27.2% | 9.9% | |
| Religare Enterprises ($RELIGARE) | -2.7% | 2.0% | 3.4% | 2.7% | |
| Iris Mediaworks ($IRISMEDIA) | | -1.1% | -0.2% | -0.2% | |
| |
|---|
| Median (34 companies) | 21.9% | 5.4% | 10.2% | 9.9% | |
|---|
| Capital First ($CAPF) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Religare Enterprises ($RELIGARE) | 20.2x | 9.2x | 6.1x | 7.0x | |
| Iris Mediaworks ($IRISMEDIA) | 0.6x | | 11.6x | 6.1x | |
| Jm Financial ($JMFINANCIL) | 6.6x | 6.4x | 6.4x | 4.8x | |
| Intec Capital ($INTECCAP) | | 5.1x | 4.9x | 4.6x | |
| Lkp Finance ($LKPFIN) | 2.2x | 6.9x | 5.8x | 4.5x | 3.5x |
| |
|---|
| Median (21 companies) | -0.0x | -0.1x | 0.7x | 0.0x | 0.0x |
|---|
| Capital First ($CAPF) | 9.1x | 7.5x | 9.2x | 9.1x | 7.7x |
