Eros International Media revenue growth accelerated from 6.2% in FY2014 to 25.3% in FY2015
29-05-2015 • About Eros International Media (
$EROSMEDIA) • By InTwits
Eros International Media reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eros International Media has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.8%. At the same time it's a lot of higher than industry average of 21.8%.
- CAPEX is quite volatile: 34.9 in FY2015, 2.8 in FY2014, 7.4 in FY2013, 5,300 in FY2012, 5,477 in FY2011
- The company has highly profitable business model: ROIC is at 17.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eros International Media ($EROSMEDIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,070 | 9,439 | 10,680 | 11,347 | 14,212 | 25.3% |
| EBITDA | 4,092 | 5,776 | 7,013 | 7,671 | 8,693 | 13.3% |
| Net Income | 1,172 | 1,478 | 1,545 | 1,997 | 2,471 | 23.7% |
Balance Sheet
|
|---|
| Cash | 1,361 | 1,353 | 500 | 1,393 | 1,588 | 14.0% |
| Short Term Debt | 2,523 | 3,356 | 2,731 | 3,359 | 3,961 | 17.9% |
| Long Term Debt | 229 | 1,125 | 1,301 | 973 | 953 | -2.0% |
Cash flow
|
|---|
| Capex | 5,477 | 5,300 | 7 | 3 | 35 | 1,146.4% |
Ratios
|
|---|
| Revenue growth | -57.9% | 33.5% | 13.1% | 6.2% | 25.3% | |
| EBITDA growth | 32.9% | 41.2% | 21.4% | 9.4% | 13.3% | |
| EBITDA Margin | 57.9% | 61.2% | 65.7% | 67.6% | 61.2% | -6.4% |
| Net Income Margin | 16.6% | 15.7% | 14.5% | 17.6% | 17.4% | -0.2% |
| CAPEX, % of revenue | 77.5% | 56.1% | 0.1% | 0.0% | 0.2% | 0.2% |
| ROIC | 21.0% | 18.4% | 15.2% | 17.6% | 17.7% | 0.1% |
| ROE | 25.8% | 19.6% | 17.0% | 18.2% | 18.4% | 0.2% |
| Net Debt/EBITDA | 0.3x | 0.5x | 0.5x | 0.4x | 0.4x | -0.0x |
Revenue and profitability
Eros International Media's Revenue surged on 25.3% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 67.6% to 61.2% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.25% in FY2015. CAPEX/Revenue dropped on 55.9 pp from 56.1% in FY2012 to 0.25% in FY2015. It's average CAPEX/Revenue for the last three years was 0.11%.
Return on investment
The company operates at good ROIC (17.70%) and ROE (18.36%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.6x. Net Debt / EBITDA showed almost no change in FY2015. Debt jumped on 13.4% in FY2015 while cash jumped on 14.0% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.0x and P/E 16.1x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 5.0x with the industry average at 4.7x.
Appendix 1: Peers in Movies & Entertainment
Below you can find Eros International Media benchmarking vs. other companies in Movies & Entertainment 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 |
|---|
| Shemaroo Entertainment ($SHEMAROO) | | 15.0% | 18.0% | 23.2% | 21.7% |
| Saregama India ($SAREGAMA) | | 16.9% | 16.1% | -4.6% | 5.1% |
| Dq Entertainment (International) ($DQE) | | 9.3% | 1.0% | 4.5% | -40.6% |
| Sri Adhikari Brothers Television Network ($SABTN) | | 167.5% | 22.2% | 11.9% | -42.6% |
| Mukta Arts ($MUKTAARTS) | | 5.0% | 22.4% | 8.2% | -58.4% |
| |
|---|
| Median (5 companies) | -86.1% | 15.0% | 17.0% | 9.5% | -40.6% |
|---|
| Eros International Media ($EROSMEDIA) | | 33.5% | 13.1% | 6.2% | 25.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Picturehouse Media ($PICTUREHS) | | | | | 54.1% |
| Dq Entertainment (International) ($DQE) | 36.4% | 41.8% | 48.8% | 40.2% | 50.5% |
| Sri Adhikari Brothers Television Network ($SABTN) | 2.1% | 7.5% | 24.7% | 27.5% | 43.7% |
| Mukta Arts ($MUKTAARTS) | 9.2% | 6.4% | 4.0% | 1.0% | 29.8% |
| Shemaroo Entertainment ($SHEMAROO) | 22.4% | 28.4% | 27.3% | 24.8% | 27.1% |
| |
|---|
| Median (8 companies) | 9.2% | 15.0% | 24.8% | 24.8% | 28.4% |
|---|
| Eros International Media ($EROSMEDIA) | 57.9% | 61.2% | 65.7% | 67.6% | 61.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 119.1% | 28.9% | 5.1% | 9.4% | 126.7% |
| Saregama India ($SAREGAMA) | 4.7% | 2.7% | 3.4% | 4.3% | 1.8% |
| Shemaroo Entertainment ($SHEMAROO) | 1.2% | 2.3% | 0.9% | 0.7% | 0.7% |
| Dq Entertainment (International) ($DQE) | 78.6% | 5.5% | 2.0% | 0.0% | 0.6% |
| Picturehouse Media ($PICTUREHS) | | | | | 0.5% |
| |
|---|
| Median (5 companies) | 18.1% | 5.5% | 3.4% | 2.5% | 0.7% |
|---|
| Eros International Media ($EROSMEDIA) | 77.5% | 56.1% | 0.1% | 0.0% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shemaroo Entertainment ($SHEMAROO) | 17.2% | 23.5% | 22.9% | 21.0% | 21.8% |
| Picturehouse Media ($PICTUREHS) | 23.0% | 15.6% | 17.3% | 16.9% | 12.0% |
| Sri Adhikari Brothers Television Network ($SABTN) | -4.8% | -4.4% | 7.1% | 10.6% | 4.8% |
| Saregama India ($SAREGAMA) | -10.6% | 4.1% | 1.7% | 8.2% | 3.4% |
| Dq Entertainment (International) ($DQE) | 9.1% | 9.4% | 9.3% | 6.2% | 3.4% |
| |
|---|
| Median (13 companies) | 9.1% | 2.1% | 7.3% | 8.2% | 4.8% |
|---|
| Eros International Media ($EROSMEDIA) | 21.0% | 18.4% | 15.2% | 17.6% | 17.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Picturehouse Media ($PICTUREHS) | -1.1x | 6.2x | 3.7x | 3.4x | 7.0x |
| Dq Entertainment (International) ($DQE) | 1.7x | 1.8x | 1.9x | 2.8x | 5.0x |
| Sri Adhikari Brothers Television Network ($SABTN) | 112.5x | 16.1x | 3.5x | 2.5x | 3.0x |
| Shemaroo Entertainment ($SHEMAROO) | 2.5x | 1.7x | 1.9x | 2.3x | 1.2x |
| Saregama India ($SAREGAMA) | 10.1x | 2.4x | 3.1x | 0.2x | 0.2x |
| |
|---|
| Median (7 companies) | 2.5x | 2.4x | 2.7x | 2.3x | 1.2x |
|---|
| Eros International Media ($EROSMEDIA) | 0.3x | 0.5x | 0.5x | 0.4x | 0.4x |
