Dish Tv India CAPEX surged on 136% in 2015 and Revenue increased on 7.1%
26-05-2015 • About Dish Tv India (
$DISHTV) • By InTwits
Dish Tv India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dish Tv India has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.8%. At the same time it's a lot of higher than industry average of 16.3%.
- CAPEX is quite volatile: 7,064 in FY2015, 2,989 in FY2014, 6,983 in FY2013, 6,553 in FY2012, 10,052 in FY2011
- The company has highly profitable business model: ROIC is at 24.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dish Tv India ($DISHTV) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,367 | 19,579 | 21,668 | 25,090 | 26,880 | 7.1% |
| SG&A | | | | | 544 | |
| EBITDA | 2,553 | 4,993 | 5,908 | 6,620 | 7,566 | 14.3% |
| Net Income | -1,920 | -1,331 | -660 | -1,576 | 31 | |
Balance Sheet
|
|---|
| Cash | 1,174 | 1,692 | 1,143 | 581 | 4,286 | 637.2% |
| Short Term Debt | 0 | 1,950 | 7,870 | 6,304 | 14,839 | 135.4% |
| Long Term Debt | 6,485 | 10,194 | 8,460 | 7,791 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 10,052 | 6,553 | 6,983 | 2,989 | 7,064 | 136.3% |
Ratios
|
|---|
| Revenue growth | -54.5% | 36.3% | 10.7% | 15.8% | 7.1% | |
| EBITDA growth | 113.3% | 95.6% | 18.3% | 12.1% | 14.3% | |
| EBITDA Margin | 17.8% | 25.5% | 27.3% | 26.4% | 28.1% | 1.8% |
| Net Income Margin | -13.4% | -6.8% | -3.0% | -6.3% | 0.1% | 6.4% |
| SG&A, % of revenue | | | | | 2.0% | 2.0% |
| CAPEX, % of revenue | 70.0% | 33.5% | 32.2% | 11.9% | 26.3% | 14.4% |
| ROIC | -14.4% | -2.5% | -4.6% | 8.7% | 24.0% | 15.3% |
| ROE | -92.8% | | | | | 0.0% |
| Net Debt/EBITDA | 2.1x | 2.1x | 2.6x | 2.0x | 1.4x | -0.6x |
Revenue and profitability
Dish Tv India's Revenue increased on 7.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.89 pp from 11.7% to 12.5% in FY2015.
Net Income marign increased on 6.4 pp from -6.3% to 0.12% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Dish Tv India had CAPEX/Revenue of 26.3%. Dish Tv India's CAPEX/Revenue decreased on 7.2 pp from 33.5% in FY2012 to 26.3% in FY2015. For the last three years the average CAPEX/Revenue was 23.5%.Dish Tv India maintained rich investment policy and has spent a big chunk of EBITDA (93.4%) to CAPEX.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.0x to 1.4x in FY2015. Debt increased on 5.3% in FY2015 while cash surged on 637% in FY2015.
Valuation
The company's trades at EV/EBITDA 15.0x and P/E 3,284.9x while industy averages are 10.5x and 26.1x. Dish Tv India's EV/(EBITDA-CAPEX) is 226.4x with the industry average at 4.7x.
Appendix 1: Peers in Broadcasting & Cable TV
Below we provide Dish Tv India benchmarking against other companies in Broadcasting & Cable TV 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 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
| Zee Media Corporation ($ZEEMEDIA) | | 10.6% | -1.7% | 11.3% | 62.6% |
| Tv18 Broadcast ($TV18BRDCST) | | 72.1% | 21.4% | 16.4% | 17.8% |
| Entertainment Network (India) ($ENIL) | | -32.9% | 9.2% | 13.2% | 14.0% |
| Zee Entertainment Enterprises ($ZEEL) | | 0.6% | 21.7% | 18.6% | 11.5% |
| |
|---|
| Median (7 companies) | -60.7% | 10.6% | 9.2% | 22.9% | 14.0% |
|---|
| Dish Tv India ($DISHTV) | | 36.3% | 10.7% | 15.8% | 7.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 22.5% | 27.7% | 21.0% | 18.2% | 54.7% |
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% |
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | 25.7% |
| Tv18 Broadcast ($TV18BRDCST) | 5.2% | -4.2% | 6.8% | 10.8% | 11.0% |
| Zee Media Corporation ($ZEEMEDIA) | 16.6% | 18.6% | 13.6% | 9.5% | 7.7% |
| |
|---|
| Median (7 companies) | 13.2% | 7.3% | 17.5% | 18.2% | 11.0% |
|---|
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | 28.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | 28.5% |
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
| Balaji Telefilms ($BALAJITELE) | 6.7% | 2.4% | 1.3% | 0.6% | 4.3% |
| Tv18 Broadcast ($TV18BRDCST) | 0.7% | 3.5% | 2.3% | 3.1% | 4.1% |
| Zee Entertainment Enterprises ($ZEEL) | 1.3% | 2.7% | 2.0% | 3.4% | 2.4% |
| |
|---|
| Median (7 companies) | 6.7% | 3.5% | 4.1% | 8.8% | 4.1% |
|---|
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | 26.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | 22.1% |
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | |
| Den Networks ($DEN) | 9.2% | 2.7% | 8.1% | 5.6% | -4.0% |
| Zee Media Corporation ($ZEEMEDIA) | 11.9% | 18.8% | 11.9% | 5.2% | -1.3% |
| |
|---|
| Median (12 companies) | 2.4% | 3.0% | 3.8% | 4.6% | 5.3% |
|---|
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | 24.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | 10.1x |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | 6.0x |
| Tv18 Broadcast ($TV18BRDCST) | 7.9x | | 2.4x | 0.9x | 1.3x |
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
| Entertainment Network (India) ($ENIL) | -0.1x | -0.4x | -0.1x | -0.1x | -0.1x |
| |
|---|
| Median (7 companies) | -0.1x | -0.4x | 1.5x | 1.6x | 1.1x |
|---|
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | 1.4x |
