D B Corp reports 12.0% EBITDA growth and 1.00 pp EBITDA Margin growth from 27.1% to 28.1%
14-05-2015 • About D B Corp (
$DBCORP) • By InTwits
D B Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- D B Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 726 in FY2015, 1,023 in FY2014, 567 in FY2013, 1,227 in FY2012, 1,433 in FY2011
- The company has highly profitable business model: ROIC is at 32.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
D B Corp ($DBCORP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,196 | 13,713 | 15,594 | 18,598 | 20,096 | 8.1% |
| SG&A | 785 | | | 207 | 262 | 26.8% |
| EBITDA | 4,063 | 3,557 | 3,871 | 5,048 | 5,654 | 12.0% |
| Net Income | 2,585 | 2,021 | 2,181 | 3,066 | 3,163 | 3.2% |
Balance Sheet
|
|---|
| Cash | 972 | 1,363 | 1,190 | 1,132 | 1,780 | 57.2% |
| Short Term Debt | 727 | 1,104 | 750 | 537 | 477 | -11.1% |
| Long Term Debt | 1,384 | 1,029 | 878 | 727 | 505 | -30.5% |
Cash flow
|
|---|
| Capex | 1,433 | 1,227 | 567 | 1,023 | 726 | -29.1% |
Ratios
|
|---|
| Revenue growth | -50.0% | 12.4% | 13.7% | 19.3% | 8.1% | |
| EBITDA growth | 17.7% | -12.4% | 8.8% | 30.4% | 12.0% | |
| EBITDA Margin | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% | 1.0% |
| Net Income Margin | 21.2% | 14.7% | 14.0% | 16.5% | 15.7% | -0.7% |
| SG&A, % of revenue | 6.4% | | | 1.1% | 1.3% | 0.2% |
| CAPEX, % of revenue | 11.8% | 8.9% | 3.6% | 5.5% | 3.6% | -1.9% |
| ROIC | 33.4% | 25.7% | 25.8% | 32.7% | 32.9% | 0.3% |
| ROE | 35.0% | 23.0% | 22.3% | 28.2% | 26.0% | -2.2% |
| Net Debt/EBITDA | 0.3x | 0.2x | 0.1x | 0.0x | -0.1x | -0.2x |
Revenue and profitability
D B Corp's Revenue increased on 8.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.9 pp from 10.3% to 12.2% in FY2015.
SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased slightly on 0.75 pp from 16.5% to 15.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in FY2015. The company showed decline in CAPEX/Revenue of 5.3 pp from 8.9% in FY2012 to 3.6% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at high and attractive ROIC (32.95%) and ROE (25.98%). ROIC showed almost no change in FY2015. ROE decreased on 2.2 pp from 28.2% to 26.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.2x from 0.026x to -0.1x in FY2015. Debt dropped on 22.2% in FY2015 while cash jumped on 57.2% in FY2015.
Valuation
The company's trades at EV/EBITDA 11.6x and P/E 20.9x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 13.3x with the industry average at 4.7x.
Appendix 1: Peers in Publishing
Below we provide D B Corp benchmarking against other companies in Publishing 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | -75.2% | 44.4% | 39.8% | 27.2% | |
| Hindustan Media Ventures ($HMVL) | | 15.6% | 6.6% | 14.7% | 12.2% |
| Jagran Prakashan ($JAGRAN) | -43.9% | 11.0% | 12.3% | 11.9% | |
| Ht Media ($HTMEDIA) | -37.5% | 15.0% | 2.3% | 7.4% | |
| |
|---|
| Median (4 companies) | -43.9% | 15.3% | 9.4% | 13.3% | 12.2% |
|---|
| D B Corp ($DBCORP) | | 12.4% | 13.7% | 19.3% | 8.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 25.4% | 26.0% | 27.8% | 39.5% | |
| Jagran Prakashan ($JAGRAN) | 29.8% | 23.4% | 19.5% | 23.2% | |
| Hindustan Media Ventures ($HMVL) | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% |
| Ht Media ($HTMEDIA) | 20.6% | 18.1% | 18.4% | 15.2% | |
| |
|---|
| Median (4 companies) | 23.0% | 20.7% | 19.0% | 22.0% | 26.2% |
|---|
| D B Corp ($DBCORP) | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ht Media ($HTMEDIA) | 4.5% | 3.8% | 6.4% | 6.9% | |
| Hindustan Media Ventures ($HMVL) | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% |
| Jagran Prakashan ($JAGRAN) | 15.1% | 11.2% | 6.6% | 5.3% | |
| Just Dial ($JUSTDIAL) | 10.7% | 8.9% | 10.0% | 4.5% | |
| |
|---|
| Median (4 companies) | 8.2% | 8.3% | 6.5% | 5.6% | 1.9% |
|---|
| D B Corp ($DBCORP) | 11.8% | 8.9% | 3.6% | 5.5% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 50.3% | 58.7% | 32.4% | 34.2% | |
| Hindustan Media Ventures ($HMVL) | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% |
| Jagran Prakashan ($JAGRAN) | | 19.7% | 11.3% | 19.7% | |
| Ht Media ($HTMEDIA) | 16.8% | 14.7% | 14.2% | 10.9% | |
| Next Mediaworks ($NEXTMEDIA) | -5.6% | -12.0% | 1.4% | 3.8% | |
| |
|---|
| Median (8 companies) | 12.5% | 14.7% | 11.3% | 19.7% | 19.6% |
|---|
| D B Corp ($DBCORP) | 33.4% | 25.7% | 25.8% | 32.7% | 32.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jagran Prakashan ($JAGRAN) | 0.5x | 2.0x | 1.5x | 1.2x | |
| Ht Media ($HTMEDIA) | 0.5x | 0.5x | 0.6x | 1.1x | |
| Next Mediaworks ($NEXTMEDIA) | 11.9x | | 1.9x | 1.0x | 0.0x |
| Arnav Corporation ($ARNAVCORP) | | 0.0x | | 0.0x | |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x |
| |
|---|
| Median (6 companies) | 0.5x | 0.5x | 1.5x | 0.5x | 0.2x |
|---|
| D B Corp ($DBCORP) | 0.3x | 0.2x | 0.1x | 0.0x | -0.1x |
