Aurionpro Solutions Net Income dropped on 339% in 2015 while Revenue jumped on 13.6%
29-05-2015 • About Aurionpro Solutions (
$AURIONPRO) • By InTwits
Aurionpro Solutions reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aurionpro Solutions has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.3%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 126 in FY2015, 54.4 in FY2014, 106 in FY2013, 522 in FY2012, 444 in FY2011
- The company has highly profitable business model: ROIC is at 12.1%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aurionpro Solutions ($AURIONPRO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,237 | 4,827 | 5,683 | 6,487 | 7,369 | 13.6% |
| EBITDA | 905 | 767 | 825 | 776 | 1,245 | 60.3% |
| Net Income | 501 | 435 | 458 | 600 | -1,438 | -339.5% |
Balance Sheet
|
|---|
| Cash | 94 | 105 | 128 | 301 | 253 | -16.1% |
| Short Term Debt | 866 | 749 | 1,356 | 1,558 | 1,240 | -20.4% |
| Long Term Debt | 269 | 645 | 160 | 248 | 538 | 117.2% |
Cash flow
|
|---|
| Capex | 665 | 845 | 696 | 815 | 984 | 20.8% |
Ratios
|
|---|
| Revenue growth | -50.1% | 13.9% | 17.7% | 14.2% | 13.6% | |
| EBITDA growth | 12.9% | -15.2% | 7.4% | -5.8% | 60.3% | |
| EBITDA Margin | 21.4% | 15.9% | 14.5% | 12.0% | 16.9% | 4.9% |
| Net Income Margin | 11.8% | 9.0% | 8.1% | 9.3% | -19.5% | -28.8% |
| CAPEX, % of revenue | 15.7% | 17.5% | 12.3% | 12.6% | 13.4% | 0.8% |
| ROIC | 15.2% | 8.6% | 8.6% | 5.9% | 12.1% | 6.2% |
| ROE | 15.6% | 11.7% | 10.6% | 11.2% | -26.5% | -37.7% |
| Net Debt/EBITDA | 1.1x | 1.7x | 1.7x | 1.9x | 1.2x | -0.7x |
Revenue and profitability
The company's Revenue surged on 13.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 10.4% to 11.8% in FY2015.
Net Income marign dropped on 28.8 pp from 9.3% to -19.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Aurionpro Solutions's CAPEX/Revenue was 13.4% in FY2015. The company showed decline in CAPEX/Revenue of 4.2 pp from 17.5% in FY2012 to 13.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 12.7%.Aurionpro Solutions invested a big chunk of EBITDA (79.0%) to CAPEX to fuel its growth.
Return on investment
The company operates at low but positive ROIC (12.15%) and negative ROE (-26.53%). ROIC increased on 6.2 pp from 5.9% to 12.1% in FY2015. ROE dropped on 37.7 pp from 11.2% to -26.5% in FY2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 1.9x to 1.2x in FY2015. Debt decreased slightly on 1.5% in FY2015 while cash dropped on 16.1% in FY2015.
Management team
Samir Shah is a the company's CEO. Samir Shah has spent 4 years at the company.
Appendix 1: Peers in IT Software Products
Below you can find Aurionpro Solutions 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 |
|---|
| Atishay Infotech ($ATISHAY) | | -25.4% | 6.9% | 21.8% | 28.2% |
| Dion Global Solutions ($DION) | | 40.4% | 40.8% | -9.5% | 27.8% |
| Avance Technologies ($AVANCE) | | -11.7% | -17.9% | -30.8% | 20.3% |
| Softsol India ($SOFTSOL) | | -10.4% | 9.3% | -20.4% | 14.1% |
| Datamatics Global Services ($DATAMATICS) | | 60.5% | 24.5% | 33.4% | 12.8% |
| |
|---|
| Median (14 companies) | 101.6% | 16.5% | 15.4% | 21.8% | 9.4% |
|---|
| Aurionpro Solutions ($AURIONPRO) | | 13.9% | 17.7% | 14.2% | 13.6% |
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 ($TATAELXSI) | 11.4% | 13.8% | 11.9% | 17.6% | 20.9% |
| Cambridge Technology Enterprises ($CTE) | | | | | 20.9% |
| Dion Global Solutions ($DION) | 14.6% | 10.0% | 8.5% | -8.5% | 15.4% |
| |
|---|
| Median (19 companies) | 8.1% | 7.5% | 8.5% | 9.9% | 9.2% |
|---|
| Aurionpro Solutions ($AURIONPRO) | 21.4% | 15.9% | 14.5% | 12.0% | 16.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mastek ($MASTKBBPH) | 4.8% | 2.2% | | 0.0% | 4.9% |
| Dion Global Solutions ($DION) | 10.7% | 39.9% | 11.9% | 29.6% | 4.0% |
| Tata Elxsi ($TATAELXSI) | 7.0% | 5.3% | 5.4% | 3.1% | 3.9% |
| Polaris Financial Technology ($POLARIS) | 5.9% | 7.2% | 2.5% | 1.5% | 3.9% |
| Datamatics Global Services ($DATAMATICS) | 5.7% | 20.2% | 3.1% | 12.9% | 2.2% |
| |
|---|
| Median (9 companies) | 4.6% | 3.1% | 4.3% | 1.9% | 2.2% |
|---|
| Aurionpro Solutions ($AURIONPRO) | 15.7% | 17.5% | 12.3% | 12.6% | 13.4% |
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) ($MINDTECK) | 6.7% | -2.6% | 1.2% | 20.0% | 17.5% |
| Atishay Infotech ($ATISHAY) | 30.9% | 27.2% | 15.7% | 19.2% | |
| Datamatics Global Services ($DATAMATICS) | 2.5% | 9.8% | 11.4% | 16.4% | 11.3% |
| |
|---|
| Median (31 companies) | 3.9% | 3.8% | 4.7% | 16.3% | 16.2% |
|---|
| Aurionpro Solutions ($AURIONPRO) | 15.2% | 8.6% | 8.6% | 5.9% | 12.1% |
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 ($SAKSOFT) | 3.8x | 2.8x | 2.3x | 0.0x | 1.2x |
| Datamatics Global Services ($DATAMATICS) | 0.2x | 0.5x | 0.3x | 0.5x | 0.3x |
| Danlaw Technologies India ($DANLAW) | | | -0.2x | 0.0x | 0.0x |
| |
|---|
| Median (16 companies) | 0.1x | 0.5x | 0.0x | 0.0x | 0.0x |
|---|
| Aurionpro Solutions ($AURIONPRO) | 1.1x | 1.7x | 1.7x | 1.9x | 1.2x |
