Muthoot Capital Services EBITDA surged on 25.5% in 2015 and EBITDA Margin increased on 2.5 pp from 61.2% to 63.7%
25-05-2015 • About Muthoot Capital Services (
$MUTHTFN) • By InTwits
Muthoot Capital Services reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Muthoot Capital Services has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's in pair with industry average of 15.8%.
- CAPEX is quite volatile: 6.6 in FY2015, 11.5 in FY2014, 18.0 in FY2013, 8.9 in FY2012, 3.5 in FY2011
- It operates with high leverage: Net Debt/EBITDA is 5.7x while industry average is 3.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Muthoot Capital Services ($MUTHTFN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 372 | 673 | 1,072 | 1,588 | 1,913 | 20.5% |
| EBITDA | 267 | 436 | 692 | 971 | 1,218 | 25.5% |
| Net Income | 97 | 155 | 218 | 222 | 223 | 0.4% |
Balance Sheet
|
|---|
| Cash | 30 | 98 | 6 | 79 | 62 | -21.5% |
| Short Term Debt | 1,340 | 2,043 | 3,424 | 5,006 | 6,873 | 37.3% |
| Long Term Debt | 65 | 91 | 98 | 704 | 127 | -81.9% |
Cash flow
|
|---|
| Capex | 4 | 9 | 18 | 12 | 7 | -42.9% |
Ratios
|
|---|
| Revenue growth | -83.3% | 81.1% | 59.3% | 48.1% | 20.5% | |
| EBITDA growth | 49.1% | 63.5% | 58.8% | 40.3% | 25.5% | |
| EBITDA Margin | 71.8% | 64.8% | 64.6% | 61.2% | 63.7% | 2.5% |
| Net Income Margin | 26.0% | 23.0% | 20.3% | 14.0% | 11.7% | -2.3% |
| CAPEX, % of revenue | 1.0% | 1.3% | 1.7% | 0.7% | 0.3% | -0.4% |
| ROE | 38.6% | 26.8% | 22.9% | 20.1% | 17.7% | -2.4% |
| Net Debt/EBITDA | 5.2x | 4.7x | 5.1x | 5.8x | 5.7x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 20.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 2.2% to 1.1% in FY2015.
Net Income marign decreased on 2.3 pp from 14.0% to 11.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Muthoot Capital Services's CAPEX/Revenue was 0.34% in FY2015. CAPEX/Revenue decreased slightly on 0.97 pp from 1.3% in FY2012 to 0.34% in FY2015. For the last three years the average CAPEX/Revenue was 0.92%.
Leverage (Debt)
Debt level is 5.7x Net Debt / EBITDA and 5.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 5.8x to 5.7x in FY2015. Debt surged on 22.6% in FY2015 while cash dropped on 21.5% in FY2015.
Valuation
The company's trades at EV/EBITDA 7.6x and P/E 10.2x while industy averages are 10.5x and 26.1x. Muthoot Capital Services's EV/(EBITDA-CAPEX) is 7.6x with the industry average at 4.7x.
Appendix 1: Peers in Finance (including NBFCs)
Below we provide Muthoot Capital Services benchmarking against other companies in Finance (including NBFCs) 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 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% |
| Mahindra & Mahindra Financial Services ($M&MFIN) | | 40.2% | 41.4% | 28.9% | 14.3% |
| |
|---|
| Median (23 companies) | -51.4% | 23.2% | 24.4% | 19.8% | 13.3% |
|---|
| Muthoot Capital Services ($MUTHTFN) | | 81.1% | 59.3% | 48.1% | 20.5% |
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 ($IDFC) | 85.3% | 88.1% | 89.6% | 87.0% | 81.7% |
| |
|---|
| Median (26 companies) | 68.2% | 70.0% | 67.8% | 66.4% | 62.6% |
|---|
| Muthoot Capital Services ($MUTHTFN) | 71.8% | 64.8% | 64.6% | 61.2% | 63.7% |
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% |
| A.K.Capital Services ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.8% | 0.6% | 0.7% | 1.1% | 0.7% |
|---|
| Muthoot Capital Services ($MUTHTFN) | 1.0% | 1.3% | 1.7% | 0.7% | 0.3% |
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 ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% |
| |
|---|
| Median (52 companies) | 6.0% | 4.1% | 4.6% | 4.1% | 4.1% |
|---|
| Muthoot Capital Services ($MUTHTFN) | | | | | |
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 ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | 8.0x |
| |
|---|
| Median (39 companies) | 2.6x | 4.5x | 3.6x | 2.9x | 3.2x |
|---|
| Muthoot Capital Services ($MUTHTFN) | 5.2x | 4.7x | 5.1x | 5.8x | 5.7x |
