A.K.Capital Services EBITDA jumped on 24.4% in 2015 and Revenue increased on 3.7%

25-05-2015 • About A.K.Capital Services ($AKCAPIT) • By InTwits

A.K.Capital Services reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 5.8x while industry average is 3.2x.

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

A.K.Capital Services ($AKCAPIT) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	1,664	1,985	1,936	2,422	2,511	3.7%
EBITDA	970	695	1,045	1,086	1,352	24.4%
Net Income	567	381	460	352	411	16.9%
Balance Sheet
Cash	164	125	470	158	75	-52.7%
Short Term Debt	297	1,996	3,949	5,614	7,323	30.4%
Long Term Debt	10	8	298	389	533	37.0%
Cash flow
Capex	31	6	56	99		-100.0%
Ratios
Revenue growth	-42.9%	19.3%	-2.4%	25.1%	3.7%
EBITDA growth	0.5%	-28.4%	50.4%	4.0%	24.4%
EBITDA Margin	58.3%	35.0%	54.0%	44.8%	53.8%	9.0%
Net Income Margin	34.1%	19.2%	23.7%	14.5%	16.4%	1.9%
CAPEX, % of revenue	1.9%	0.3%	2.9%	4.1%		-4.1%
ROE	26.3%	14.7%	15.5%	10.6%	11.2%	0.7%
Net Debt/EBITDA	0.1x	2.7x	3.6x	5.4x	5.8x	0.4x

Revenue and profitability

A.K.Capital Services's Revenue increased on 3.7% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.0 pp from 44.8% to 53.8% in FY2015.

Net Income marign increased slightly on 1.9 pp from 14.5% to 16.4% in FY2015.

Leverage (Debt)

Company's Net Debt / EBITDA is 5.8x and Debt / EBITDA is 5.8x. Net Debt / EBITDA jumped on 0.4x from 5.4x to 5.8x in FY2015. Debt surged on 30.9% in FY2015 while cash dropped on 52.7% in FY2015.

Appendix 1: Peers in Finance (including NBFCs)

Below you can find A.K.Capital Services benchmarking vs. other companies in Finance (including NBFCs) 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
Advance Powerinfra Tech ($ADVPOWER)				209.3%
Vishwamitra Financial Services ($VISHWAFIN)			65.2%	118.5%
Industrial Investment Trust ($IITL)	-88.9%	119.2%	72.5%	76.4%
Sks Microfinance ($SKSMICRO)		-62.8%	-25.6%	55.0%	47.3%
Muthoot Capital Services ($MUTHTFN)		81.1%	59.3%	48.1%	20.5%
Median (23 companies)	-51.4%	23.5%	26.9%	19.8%	14.3%
A.K.Capital Services ($AKCAPIT)		19.3%	-2.4%	25.1%	3.7%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Pnb Gilts ($PNBGILTS)	91.8%	94.0%	96.4%	96.4%	96.1%
Jsw Holdings ($JSWHL)					93.8%
Bajaj Holdings & Investment ($BAJAJHLDNG)	98.7%	96.2%	95.5%	94.4%	92.7%
Tci Finance ($TCIFINANCE)					87.6%
IDFC Limited ($IDFC)	85.3%	88.1%	89.6%	87.0%	81.7%
Median (26 companies)	69.5%	70.0%	67.8%	66.4%	63.2%
A.K.Capital Services ($AKCAPIT)	58.3%	35.0%	54.0%	44.8%	53.8%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Srei Infrastructure Finance ($SREINFRA)	34.8%	29.3%	8.3%	12.6%	5.4%
Clarus Finance & Securities ($CLARUS)				6.9%
Industrial Investment Trust ($IITL)	3.7%	1.1%	0.3%	4.9%
Fortune Financial Services (India) ($FORTUNEF)	5.5%	1.0%	1.3%	4.5%	7.3%
Reliance Capital ($RELCAPITAL)	1.8%	2.0%	0.7%	2.5%
Median (20 companies)	1.7%	1.0%	0.7%	0.9%	0.7%
A.K.Capital Services ($AKCAPIT)	1.9%	0.3%	2.9%	4.1%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Motilal Oswal Financial Services ($MOTILALOFS)			12.0%	9.7%	11.9%
Shriram City Union Finance ($SHRIRAMCIT)		6.1%	5.8%	5.8%	5.7%
Mahindra & Mahindra Financial Services ($M&MFIN)	7.3%	6.4%	6.3%	5.3%	4.2%
Rural Electrification Corporation ($RECLTD)			4.7%	5.2%
IDFC Limited ($IDFC)	4.8%	4.8%	5.0%	4.3%	3.4%
Median (52 companies)	6.0%	4.1%	4.6%	4.1%	4.1%
A.K.Capital Services ($AKCAPIT)

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Pnb Gilts ($PNBGILTS)	9.0x	14.2x	11.2x	11.3x	8.8x
Fortune Financial Services (India) ($FORTUNEF)	4.7x	9.0x		10.8x	8.9x
Vibrant Global Capital ($VGCL)	7.8x	23.1x	32.8x	10.7x
Rural Electrification Corporation ($RECLTD)	8.1x	8.3x	8.0x	7.5x
Srei Infrastructure Finance ($SREINFRA)	6.4x	7.0x	6.2x	7.5x	8.0x
Median (39 companies)	3.0x	4.8x	3.6x	2.9x	3.2x
A.K.Capital Services ($AKCAPIT)	0.1x	2.7x	3.6x	5.4x	5.8x

A.K.Capital Services stock price chart

A.K.Capital Services financials

mln.	FY2010	FY2011	FY2012

Revenue	2,915	1,664	1,985
EBITDA	965.6	970.1	694.8
Net income	562.6	567.3	381.0
CAPEX	17.730	31.432	5.821
Debt	179.9	307.8	2,003
Cash	96.588	164.3	125.5

About A.K.Capital Services

A. K. Capital Services Limited, together with its subsidiaries, provides merchant banking services in India. It offers corporate debt raising services through private placement of bonds and debentures; initial public issue of bonds and debentures; project financing; working capital financing; and financial advisory services, as well as corporate bonds. The company also provides equity capital market services, including initial public offering (IPO), follow-on public offering, private placement of equity, mergers and acquisitions, convertibles, and qualified institutional placement services to raise equity capital. In addition, it offers structured products; venture capital; retirement trust solutions; and project finance services. Further, the company provides stock broking, IPO distribution, third party product distribution, and depository services; portfolio management services; and management consultancy and financial restructuring services. In addition, it is involved in lending to corporates; investment and trading in debt securities; and investment in shares. It serves central and state government undertakings, private and nationalized banks, financial institutions, and private sector corporate customers. The company was founded in 1993 and is based in Mumbai, India.