Softsol India Net Income dropped on 39.4% in 2015
26-05-2015 • About Softsol India (
$SOFTSOL) • By InTwits
Softsol India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -4.4%
- Softsol India motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -3.7% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Softsol India ($SOFTSOL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 740.4 | 663.2 | 724.7 | 576.7 | 657.7 | 14.1% |
| EBITDA | 13.3 | -58.8 | -48.7 | | -29.2 | |
| Net Income | 62.1 | 11.2 | 33.1 | 29.0 | 17.6 | -39.4% |
Balance Sheet
|
|---|
| Cash | 98.4 | 64.9 | 69.3 | | | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | | | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | | | |
Cash flow
|
|---|
| Capex | 68.1 | 16.8 | 60.4 | | | |
Ratios
|
|---|
| Revenue growth | -21.8% | -10.4% | 9.3% | -20.4% | 14.1% | |
| EBITDA growth | -92.0% | -543.2% | -17.2% | | | |
| EBITDA Margin | 1.8% | -8.9% | -6.7% | 0.0% | -4.4% | -4.4% |
| Net Income Margin | 8.4% | 1.7% | 4.6% | 5.0% | 2.7% | -2.4% |
| CAPEX, % of revenue | 9.2% | 2.5% | 8.3% | | | 0.0% |
| ROIC | -0.6% | -5.1% | -4.4% | | | 0.0% |
| ROE | 3.4% | 0.6% | 1.8% | | | 0.0% |
| Net Debt/EBITDA | -7.4x | | | | | 0.0x |
Revenue and profitability
Softsol India's Revenue jumped on 14.1% in FY2015.
Net Income marign decreased on 2.4 pp from 5.0% to 2.7% in FY2015.
Appendix 1: Peers in IT Software Products
Below you can find Softsol India benchmarking vs. other companies in IT Software Products 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 |
|---|
| Blue Star Infotech ($BLUESTINFO) | | 5.1% | 49.2% | 43.3% | -2.0% |
| Saksoft ($SAKSOFT) | | 16.3% | 29.5% | 41.1% | 3.1% |
| Twinstar Industries ($TWINSTAR) | -90.5% | 204.5% | 59.8% | 38.8% | |
| Datamatics Global Services ($DATAMATICS) | -71.6% | 60.5% | 24.5% | 33.4% | |
| Trigyn Technologies ($TRIGYN) | | 16.8% | 27.1% | 29.8% | 9.1% |
| |
|---|
| Median (15 companies) | -47.6% | 16.5% | 17.7% | 21.8% | 7.5% |
|---|
| Softsol India ($SOFTSOL) | | -10.4% | 9.3% | -20.4% | 14.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atishay Infotech ($ATISHAY) | 19.6% | 35.7% | 28.1% | 25.8% | 24.5% |
| Subex ($SUBEX) | 26.8% | 27.3% | 17.0% | 24.9% | 23.6% |
| Tata Elxsi ($TATAELXSI) | 11.4% | 13.8% | 11.9% | 17.6% | 20.9% |
| Datamatics Global Services ($DATAMATICS) | 5.6% | 9.2% | 9.4% | 12.4% | |
| Aurionpro Solutions ($AURIONPRO) | 21.4% | 15.9% | 14.5% | 12.0% | |
| |
|---|
| Median (14 companies) | 10.7% | 9.6% | 9.4% | 10.1% | 9.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dion Global Solutions ($DION) | 10.7% | 39.9% | 11.9% | 29.6% | |
| Datamatics Global Services ($DATAMATICS) | 5.7% | 20.2% | 3.1% | 12.9% | |
| Aurionpro Solutions ($AURIONPRO) | 15.7% | 17.5% | 12.3% | 12.6% | |
| Atishay Infotech ($ATISHAY) | 3.8% | 41.7% | 8.6% | 10.0% | |
| Tata Elxsi ($TATAELXSI) | 7.0% | 5.3% | 5.4% | 3.1% | 3.9% |
| |
|---|
| Median (11 companies) | 4.6% | 4.5% | 4.3% | 2.3% | 2.8% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Elxsi ($TATAELXSI) | 13.2% | 22.5% | 19.1% | 38.3% | 55.4% |
| Trigyn Technologies ($TRIGYN) | 15.7% | 15.2% | 21.1% | 26.2% | |
| Mindteck (India) ($MINDTECK) | 6.7% | -2.6% | 1.2% | 20.0% | |
| Atishay Infotech ($ATISHAY) | 30.9% | 27.2% | 15.7% | 19.2% | |
| Datamatics Global Services ($DATAMATICS) | 2.5% | 9.8% | 11.4% | 16.4% | |
| |
|---|
| Median (31 companies) | 5.5% | 4.6% | 5.8% | 16.3% | 16.2% |
|---|
| Softsol India ($SOFTSOL) | -0.6% | -5.1% | -4.4% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Subex ($SUBEX) | 4.2x | 4.6x | 13.1x | 8.5x | 8.0x |
| Aurionpro Solutions ($AURIONPRO) | 1.1x | 1.7x | 1.7x | 1.9x | |
| Datamatics Global Services ($DATAMATICS) | 0.2x | 0.5x | 0.3x | 0.5x | |
| Atishay Infotech ($ATISHAY) | -1.0x | -0.2x | -0.0x | 0.3x | 0.0x |
| Ace Software Exports ($ACESOFT) | | | | 0.0x | |
| |
|---|
| Median (15 companies) | 0.2x | 0.5x | 0.0x | 0.0x | 0.0x |
|---|
