Oriental Bank Of Commerce reports 56.4% Net Income decline
14-05-2015 • About Oriental Bank Of Commerce (
$ORIENTBANK) • By InTwits
Oriental Bank Of Commerce reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Oriental Bank Of Commerce has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oriental Bank Of Commerce ($ORIENTBANK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 130,482 | 170,523 | 193,382 | 209,506 | 220,827 | 5.4% |
| Net Income | 15,029 | 11,416 | 13,280 | 11,394 | 4,971 | -56.4% |
Balance Sheet
|
|---|
| Cash | 95,151 | 84,617 | 81,719 | 99,812 | 101,884 | 2.1% |
| Short Term Debt | 5,190 | 1,341 | 1,279 | 15,554 | 10,899 | -29.9% |
| Long Term Debt | 57,434 | 56,129 | 78,554 | 40,756 | 24,574 | -39.7% |
Cash flow
|
|---|
| Capex | 1,269 | 1,526 | 894 | 1,677 | 2,952 | 76.1% |
Ratios
|
|---|
| Revenue growth | -61.3% | 30.7% | 13.4% | 8.3% | 5.4% | |
| Net Income Margin | 11.5% | 6.7% | 6.9% | 5.4% | 2.3% | -3.2% |
| CAPEX, % of revenue | 1.0% | 0.9% | 0.5% | 0.8% | 1.3% | 0.5% |
| ROIC | 12.4% | 7.6% | 7.4% | 6.7% | 3.7% | -3.0% |
| ROE | 15.5% | 9.9% | 10.7% | 8.7% | 3.7% | -5.0% |
Revenue and profitability
Oriental Bank Of Commerce's Revenue increased on 5.4% in FY2015.
Net Income marign decreased on 3.2 pp from 5.4% to 2.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Oriental Bank Of Commerce's CAPEX/Revenue was 1.3% in FY2015. Oriental Bank Of Commerce's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.87%.
Return on investment
The company operates at low ROIC (3.72%) and ROE (3.65%). ROIC decreased on 3.0 pp from 6.7% to 3.7% in FY2015. ROE decreased on 5.0 pp from 8.7% to 3.7% in FY2015.
Leverage (Debt)
Debt dropped on 37.0% in FY2015 while cash increased on 2.1% in FY2015.
Management team
The company's CEO is Animesh Chauhan. Animesh Chauhan has 3 years tenure at the company.
Appendix 1: Peers in Banks
Below you can find Oriental Bank Of Commerce benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($UNIONBANK) | | 26.9% | 19.5% | 15.7% | 11.5% |
| |
|---|
| Median (28 companies) | -46.2% | 28.5% | 16.2% | 10.9% | 10.2% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | | 30.7% | 13.4% | 8.3% | 5.4% |
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 ($LAKSHVILAS) | 4.4% | 2.1% | 1.4% | 1.6% | 2.4% |
| |
|---|
| Median (27 companies) | 1.3% | 1.2% | 1.2% | 1.3% | 1.3% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | 1.0% | 0.9% | 0.5% | 0.8% | 1.3% |
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% |
| Karur Vysya Bank ($KARURVYSYA) | 19.1% | 14.5% | 11.0% | 5.3% | 5.7% |
| |
|---|
| Median (28 companies) | 7.0% | 6.8% | 6.0% | 3.2% | 4.7% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | 12.4% | 7.6% | 7.4% | 6.7% | 3.7% |
