Jammu & Kashmir Bank Net Income dropped on 56.9% in 2015 while Revenue increased on 7.0%

16-05-2015 • About Jammu & Kashmir Bank ($J&KBANK) • By InTwits

Jammu & Kashmir Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Jammu & Kashmir Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 1.4%.
CAPEX is quite volatile: 2,493 in FY2015, 1,566 in FY2014, 862 in FY2013, 705 in FY2012, 2,276 in FY2011

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Jammu & Kashmir Bank ($J&KBANK) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	40,779	51,706	66,221	71,602	76,602	7.0%
Net Income	6,153	8,030	10,549	11,811	5,085	-56.9%
Balance Sheet
Cash	29,750	27,837	26,951	30,456	23,731	-22.1%
Short Term Debt	4,220	4,511	4,347	74,886	10,230	-86.3%
Long Term Debt	44,320	60,339	64,076	11,100	13,167	18.6%
Cash flow
Capex	2,276	705	862	1,566	2,493	59.2%
Ratios
Revenue growth	-55.6%	26.8%	28.1%	8.1%	7.0%
Net Income Margin	15.1%	15.5%	15.9%	16.5%	6.6%	-9.9%
CAPEX, % of revenue	5.6%	1.4%	1.3%	2.2%	3.3%	1.1%
ROE	19.0%	21.2%	23.6%	22.3%	8.6%	-13.7%

Revenue and profitability

Jammu & Kashmir Bank's Revenue increased on 7.0% in FY2015.

Net Income marign decreased on 9.9 pp from 16.5% to 6.6% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 the company had CAPEX/Revenue of 3.3%. CAPEX/Revenue increased slightly on 1.9 pp from 1.4% in FY2012 to 3.3% in FY2015. Average CAPEX/Revenue for the last three years was 2.2%.

Leverage (Debt)

Debt dropped on 72.8% in FY2015 while cash dropped on 22.1% in FY2015.

Appendix 1: Peers in Banks

Below you can find Jammu & Kashmir Bank 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 ($UNIONBANK)		26.9%	19.5%	15.7%	11.5%
Median (28 companies)	-36.9%	29.5%	15.6%	10.9%	9.9%
Jammu & Kashmir Bank ($J&KBANK)		26.8%	28.1%	8.1%	7.0%

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 ($DHANBANK)	6.8%	3.0%	1.7%	2.2%
Lakshmi Vilas Bank ($LAKSHVILAS)	4.4%	2.1%	1.4%	1.6%	2.4%
Federal Bank ($FEDERALBNK)	1.3%	1.7%	2.3%	1.6%	1.4%
Median (27 companies)	1.2%	1.2%	1.1%	1.2%	1.3%
Jammu & Kashmir Bank ($J&KBANK)	5.6%	1.4%	1.3%	2.2%	3.3%

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%
Oriental Bank Of Commerce ($ORIENTBANK)	12.4%	7.6%	7.4%	6.7%	3.7%
Median (28 companies)	7.1%	7.2%	6.1%	3.3%	4.5%
Jammu & Kashmir Bank ($J&KBANK)

Jammu & Kashmir Bank stock price chart

Jammu & Kashmir Bank financials

mln.	FY2010	FY2011	FY2012

Revenue	91,796	40,779	51,706
EBITDA	0.000	0.000	0.000
Net income	5,126	6,153	8,030
CAPEX	416.5	2,276	704.6
Debt	52,010	48,541	64,850
Cash	27,447	29,750	27,837

About Jammu & Kashmir Bank

The Jammu & Kashmir Bank Limited provides various banking products and services in India. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking segments. It offers a range of deposit products and services, including saving bank deposits, salary accounts, term deposits, and current accounts, as well as gift check schemes. The company also provides home, personal, education, automobile, agriculture, craft, and specialized finance; and mortgage loans for immovable property, and trade and service sectors, as well as offers credit facility to fair price shops and travel and tourist taxi operators. In addition, it offers tax products and planning services; life and non-life insurance products; and nonresident banking services, as well as distributes mutual funds. Further, the company provides support services, such as core banking, Internet banking, mobile banking, ATM, and merchant acquiring services, as well as offers debit and credit cards. Additionally, it offers cash management services, including real time gross settlement and national electronic fund transfer payment services; and remittance services. As of March 31, 2014, the company operated a network of 777 branches in approximately 20 states and 1 union territory. The Jammu & Kashmir Bank Limited was incorporated in 1938 and is headquartered in Srinagar, India.