Datamatics Global Services revenue jumped on 12.8% in 2015 while EBITDA Margin decreased slightly on 2.0 pp from 12.4% to 10.4%
27-05-2015 • About Datamatics Global Services (
$DATAMATICS) • By InTwits
Datamatics Global Services reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Datamatics Global Services has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 180 in FY2015, 947 in FY2014, 171 in FY2013, 893 in FY2012, 156 in FY2011
- The company has business model with average profitability: ROIC is at 11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datamatics Global Services ($DATAMATICS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,753 | 4,419 | 5,500 | 7,338 | 8,280 | 12.8% |
| EBITDA | 154 | 407 | 515 | 909 | 863 | -5.1% |
| Net Income | 208 | 267 | 268 | 487 | 432 | -11.3% |
Balance Sheet
|
|---|
| Cash | 68 | 250 | 218 | 465 | 648 | 39.6% |
| Short Term Debt | 101 | 471 | 390 | 393 | 535 | 36.2% |
| Long Term Debt | 0 | 0 | 0 | 520 | 388 | -25.5% |
Cash flow
|
|---|
| Capex | 156 | 893 | 171 | 947 | 180 | -81.0% |
Ratios
|
|---|
| Revenue growth | -71.6% | 60.5% | 24.5% | 33.4% | 12.8% | |
| EBITDA growth | 24.0% | 164.3% | 26.5% | 76.7% | -5.1% | |
| EBITDA Margin | 5.6% | 9.2% | 9.4% | 12.4% | 10.4% | -2.0% |
| Net Income Margin | 7.6% | 6.0% | 4.9% | 6.6% | 5.2% | -1.4% |
| CAPEX, % of revenue | 5.7% | 20.2% | 3.1% | 12.9% | 2.2% | -10.7% |
| ROIC | 2.5% | 9.8% | 11.4% | 16.4% | 11.3% | -5.1% |
| ROE | 8.5% | 10.2% | 9.4% | 15.4% | 12.0% | -3.3% |
| Net Debt/EBITDA | 0.2x | 0.5x | 0.3x | 0.5x | 0.3x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 12.8% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 2.0 pp from 12.4% to 10.4% in FY2015.
Net Income marign decreased slightly on 1.4 pp from 6.6% to 5.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Datamatics Global Services's CAPEX/Revenue was 2.2% in FY2015. Datamatics Global Services showed big decline in CAPEX/Revenue of 18.0 pp from 20.2% in FY2012 to 2.2% in FY2015. It's average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at good ROE (12.04%) while ROIC is low (11.33%). ROIC decreased on 5.1 pp from 16.4% to 11.3% in FY2015. ROE decreased on 3.3 pp from 15.4% to 12.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.2x from 0.5x to 0.3x in FY2015. Debt increased slightly on 1.0% in FY2015 while cash jumped on 39.6% in FY2015.
Appendix 1: Peers in IT Software Products
Below you can find Datamatics Global Services 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 ($TWINSTAR) | -90.5% | 204.5% | 59.8% | 38.8% | |
| Trigyn Technologies ($TRIGYN) | | 16.8% | 27.1% | 29.8% | 9.1% |
| Tata Elxsi ($TATAELXSI) | | 29.5% | 15.4% | 24.6% | 9.6% |
| |
|---|
| Median (15 companies) | -40.9% | 15.1% | 15.4% | 14.2% | 9.4% |
|---|
| Datamatics Global Services ($DATAMATICS) | | 60.5% | 24.5% | 33.4% | 12.8% |
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 ($TATAELXSI) | 11.4% | 13.8% | 11.9% | 17.6% | 20.9% |
| Dion Global Solutions ($DION) | 14.6% | 10.0% | 8.5% | -8.5% | 15.4% |
| Polaris Financial Technology ($POLARIS) | 13.6% | 13.8% | 11.9% | 10.2% | 11.9% |
| |
|---|
| Median (12 companies) | 10.7% | 7.9% | 8.5% | 9.9% | 9.7% |
|---|
| Datamatics Global Services ($DATAMATICS) | 5.6% | 9.2% | 9.4% | 12.4% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dion Global Solutions ($DION) | 10.7% | 39.9% | 11.9% | 29.6% | 4.0% |
| Aurionpro Solutions ($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% |
| Blue Star Infotech ($BLUESTINFO) | 6.0% | 1.4% | 3.1% | 2.3% | 0.7% |
| |
|---|
| Median (10 companies) | 4.6% | 3.1% | 6.9% | 1.9% | 3.9% |
|---|
| Datamatics Global Services ($DATAMATICS) | 5.7% | 20.2% | 3.1% | 12.9% | 2.2% |
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% | |
| Blue Star Infotech ($BLUESTINFO) | | | 7.1% | 16.3% | 17.4% |
| |
|---|
| Median (31 companies) | 5.5% | 3.8% | 4.7% | 14.4% | 16.2% |
|---|
| Datamatics Global Services ($DATAMATICS) | 2.5% | 9.8% | 11.4% | 16.4% | 11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Subex ($SUBEX) | 4.2x | 4.6x | 13.1x | 8.5x | 8.0x |
| Dion Global Solutions ($DION) | 11.6x | 11.8x | 11.3x | | 7.4x |
| Saksoft ($SAKSOFT) | 3.8x | 2.8x | 2.3x | 0.0x | 1.2x |
| Danlaw Technologies India ($DANLAW) | | | -0.2x | 0.0x | 0.0x |
| B2B Software Technologies ($B2BSOFT) | | | -39.5x | | 0.0x |
| |
|---|
| Median (11 companies) | 0.1x | 0.7x | 0.0x | 0.0x | 0.0x |
|---|
| Datamatics Global Services ($DATAMATICS) | 0.2x | 0.5x | 0.3x | 0.5x | 0.3x |
