Multi Commodity Exchange Of India reports 41.3% EBITDA decline and 34.7% Revenue decline
15-05-2015 • About Multi Commodity Exchange Of India (
$MCX) • By InTwits
Multi Commodity Exchange Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Multi Commodity Exchange Of India is a company in decline: FY2015 revenue growth was -34.7%, 5 years revenue CAGR was -2.7%
- EBITDA Margin is declining: 39.4% in FY2015 vs. 43.8% in FY2014 vs. 53.7% in FY2011
- Multi Commodity Exchange Of India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 3.4%.
- CAPEX is quite volatile: 83.6 in FY2015, 59.3 in FY2014, 462 in FY2013, 206 in FY2012, 312 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Multi Commodity Exchange Of India ($MCX) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,689 | 5,451 | 5,240 | 3,407 | 2,225 | -34.7% |
| EBITDA | 1,982 | 3,589 | 3,263 | 1,493 | 877 | -41.3% |
| Net Income | 1,734 | 2,867 | 2,992 | 1,532 | 1,258 | -17.9% |
Balance Sheet
|
|---|
| Cash | 613 | 909 | 752 | 531 | 351 | -34.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 312 | 206 | 462 | 59 | 84 | 40.9% |
Ratios
|
|---|
| Revenue growth | 44.3% | 47.8% | -3.9% | -35.0% | -34.7% | |
| EBITDA growth | 29.0% | 81.1% | -9.1% | -54.2% | -41.3% | |
| EBITDA Margin | 53.7% | 65.8% | 62.3% | 43.8% | 39.4% | -4.4% |
| Net Income Margin | 47.0% | 52.6% | 57.1% | 45.0% | 56.5% | 11.6% |
| CAPEX, % of revenue | 8.5% | 3.8% | 8.8% | 1.7% | 3.8% | 2.0% |
| ROIC | 21.9% | 35.4% | 27.2% | 9.9% | 4.8% | -5.1% |
| ROE | 22.5% | 31.1% | 27.8% | 13.3% | 9.9% | -3.4% |
| Net Debt/EBITDA | -0.3x | -0.3x | -0.2x | -0.4x | -0.4x | -0.0x |
Revenue and profitability
Multi Commodity Exchange Of India's Revenue dropped on 34.7% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 43.8% to 39.4% in FY2015.
Net Income marign surged on 11.6 pp from 45.0% to 56.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.8%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 4.8%.
Return on investment
The company operates at low ROIC (4.79%) and ROE (9.91%). ROIC decreased on 5.1 pp from 9.9% to 4.8% in FY2015. ROE decreased on 3.4 pp from 13.3% to 9.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 34.0% in FY2015.
Valuation
Multi Commodity Exchange Of India's trades at EV/EBITDA 62.6x and P/E 43.9x while industy averages are 10.5x and 26.1x. Multi Commodity Exchange Of India's EV/(EBITDA-CAPEX) is 69.2x with the industry average at 4.7x.
Appendix 1: Peers in Other Financial Services
Below you can find Multi Commodity Exchange Of India benchmarking vs. other companies in Other Financial Services 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 |
|---|
| Indiabulls Securities ($IBSEC) | | -48.1% | 0.1% | 58.0% | 31.6% |
| Intec Capital ($INTECCAP) | | | 42.5% | 34.2% | |
| Capital First ($CAPF) | | 90.7% | 9.9% | 31.5% | 35.8% |
| Centrum Capital ($CENTRUM) | -70.3% | 85.4% | -5.7% | 23.1% | |
| Crisil ($CRISIL) | 28.4% | 21.2% | 13.6% | 12.9% | |
| |
|---|
| Median (11 companies) | -46.2% | 2.5% | 9.9% | 12.2% | 42.4% |
|---|
| Multi Commodity Exchange Of India ($MCX) | | 47.8% | -3.9% | -35.0% | -34.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital First ($CAPF) | 67.6% | 74.3% | 68.2% | 67.6% | 66.6% |
| Intec Capital ($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 ($RELIGARE) | 19.1% | 43.2% | 57.6% | 53.8% | |
| |
|---|
| Median (11 companies) | 33.2% | 33.5% | 36.2% | 33.3% | 31.2% |
|---|
| Multi Commodity Exchange Of India ($MCX) | 53.7% | 65.8% | 62.3% | 43.8% | 39.4% |
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 ($IBSEC) | 1.0% | 8.1% | 1.8% | 1.8% | 1.1% |
| |
|---|
| Median (10 companies) | 2.1% | 3.6% | 1.6% | 1.7% | 1.1% |
|---|
| Multi Commodity Exchange Of India ($MCX) | 8.5% | 3.8% | 8.8% | 1.7% | 3.8% |
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% | |
| Religare Enterprises ($RELIGARE) | -2.7% | 2.0% | 3.4% | 2.7% | |
| Iris Mediaworks ($IRISMEDIA) | | -1.1% | -0.2% | -0.2% | |
| Db (International) Stock Brokers ($DBSTOCKBRO) | | | | | |
| |
|---|
| Median (34 companies) | 10.9% | 3.7% | 3.4% | 11.8% | |
|---|
| Multi Commodity Exchange Of India ($MCX) | 21.9% | 35.4% | 27.2% | 9.9% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital First ($CAPF) | 9.1x | 7.5x | 9.2x | 9.1x | 7.7x |
| Religare Enterprises ($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 ($INTECCAP) | | 5.1x | 4.9x | 4.6x | |
| |
|---|
| Median (21 companies) | 0.0x | 0.0x | 1.8x | 0.0x | 0.0x |
|---|
| Multi Commodity Exchange Of India ($MCX) | -0.3x | -0.3x | -0.2x | -0.4x | -0.4x |
