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Vindhya Telelinks reports 114% Net Income growth and 49.3% Revenue growth

16-05-2015 • About Vindhya Telelinks ($VINDHYATEL) • By InTwits

Vindhya Telelinks reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is expanding: 15.0% in FY2015 vs. 11.3% in FY2014 vs. 3.2% in FY2011
  • EBITDA Margin is quite volatile: 15.0% in FY2015, 11.3% in FY2014, 6.8% in FY2013, -0.4% in FY2012, 3.2% in FY2011
  • Vindhya Telelinks has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.5%.
  • CAPEX is quite volatile: 214 in FY2015, 230 in FY2014, 39.3 in FY2013, 14.6 in FY2012, 69.8 in FY2011
  • The company has highly profitable business model: ROIC is at 15.0%
  • It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Vindhya Telelinks ($VINDHYATEL) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue2,0712,6023,5354,5886,84849.3%
EBITDA67-102405181,02497.6%
Net Income13919212348746114.1%
Balance Sheet
Cash73136028736527.4%
Short Term Debt5159811,1431,0001,86986.9%
Long Term Debt2106331,23294.6%
Cash flow
Capex701539230214-7.1%
Ratios
Revenue growth-74.2%25.6%35.9%29.8%49.3%
EBITDA growth-54.2%-115.2%-2,470.3%116.0%97.6%
EBITDA Margin3.2%-0.4%6.8%11.3%15.0%3.7%
Net Income Margin6.7%0.7%6.0%7.6%10.9%3.3%
CAPEX, % of revenue3.4%0.6%1.1%5.0%3.1%-1.9%
ROIC0.5%-1.8%4.7%9.9%15.0%5.1%
ROE5.1%0.7%7.3%11.0%20.3%9.4%
Net Debt/EBITDA6.7x4.5x2.6x2.7x0.1x

Revenue and profitability


Vindhya Telelinks's Revenue jumped on 49.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.7 pp from 11.3% to 15.0% in FY2015.

Net Income marign increased on 3.3 pp from 7.6% to 10.9% in FY2015.

Capital expenditures (CAPEX) and working capital investments


The company's CAPEX/Revenue was 3.1% in FY2015. Vindhya Telelinks showed CAPEX/Revenue growth of 2.6 pp from 0.56% in FY2012 to 3.1% in FY2015. For the last three years the average CAPEX/Revenue was 3.1%.

Return on investment


The company operates at high and attractive ROE (20.30%) while ROIC is a bit lower (14.99%). ROIC increased on 5.1 pp from 9.9% to 15.0% in FY2015. ROE increased on 9.4 pp from 11.0% to 20.3% in FY2015.

Leverage (Debt)


Debt level is 2.7x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 2.6x to 2.7x in FY2015. Debt surged on 89.9% in FY2015 while cash jumped on 27.4% in FY2015.

Appendix 1: Peers in Telecom Cables


Below we provide Vindhya Telelinks benchmarking against other companies in Telecom Cables 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
Himachal Futuristic Communications ($HFCL)132.4%233.0%
Cmi ($CMI)-61.8%23.5%21.6%18.7%
Aksh Optifibre ($AKSHOPTFBR)-68.7%108.8%-6.1%-7.0%
 
Median (3 companies)-65.2%66.2%21.6%18.7%
Vindhya Telelinks ($VINDHYATEL)25.6%35.9%29.8%49.3%


Top companies by EBITDA margin, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Aksh Optifibre ($AKSHOPTFBR)-6.9%11.1%14.7%14.5%
Himachal Futuristic Communications ($HFCL)8.7%11.4%12.9%
Cmi ($CMI)9.3%9.0%8.6%8.4%
 
Median (3 companies)1.2%9.0%11.4%12.9%
Vindhya Telelinks ($VINDHYATEL)3.2%-0.4%6.8%11.3%15.0%


Top companies by CAPEX/Revenue, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Aksh Optifibre ($AKSHOPTFBR)1.9%0.6%1.4%7.8%
Himachal Futuristic Communications ($HFCL)7.9%5.9%2.3%
Cmi ($CMI)1.1%1.1%1.8%0.6%
 
Median (3 companies)1.5%1.1%1.8%2.3%
Vindhya Telelinks ($VINDHYATEL)3.4%0.6%1.1%5.0%3.1%


Top companies by ROIC, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Himachal Futuristic Communications ($HFCL)9.0%30.9%
Cmi ($CMI)17.3%16.7%16.1%16.6%
Aksh Optifibre ($AKSHOPTFBR)-6.0%4.2%5.4%4.3%
Tamilnadu Telecommunications ($TNTELE)-22.0%
 
Median (4 companies)-6.0%10.4%9.0%16.6%
Vindhya Telelinks ($VINDHYATEL)0.5%-1.8%4.7%9.9%15.0%


Top companies by Net Debt / EBITDA

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Cmi ($CMI)2.9x4.1x4.1x4.3x
Aksh Optifibre ($AKSHOPTFBR)1.0x0.4x3.9x
Himachal Futuristic Communications ($HFCL)17.8x5.3x1.1x
 
Median (3 companies)2.9x4.1x4.1x3.9x
Vindhya Telelinks ($VINDHYATEL)6.7x4.5x2.6x2.7x


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