Mindteck (India) reports 3.1% Net Income growth while 2.9% Revenue decline
29-05-2015 • About Mindteck (India) (
$MINDTECK) • By InTwits
Mindteck (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mindteck (India) is a company in decline: FY2015 revenue growth was -2.9%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is quite volatile: 9.1% in FY2015, 8.8% in FY2014, 1.0% in FY2013, -0.8% in FY2012, 4.5% in FY2011
- Mindteck (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 17.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mindteck (India) ($MINDTECK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,409 | 2,226 | 2,643 | 3,288 | 3,191 | -2.9% |
| EBITDA | 109 | -17 | 26 | 290 | 292 | 0.7% |
| Net Income | 91 | -51 | 11 | 186 | 192 | 3.1% |
Balance Sheet
|
|---|
| Cash | 51 | 106 | 77 | 154 | 344 | 123.5% |
| Short Term Debt | 3 | 0 | 37 | 0 | 0 | |
| Long Term Debt | 3 | 0 | 5 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 7 | 8 | 10 | 27 | 19 | -29.2% |
Ratios
|
|---|
| Revenue growth | -36.6% | -7.6% | 18.7% | 24.4% | -2.9% | |
| EBITDA growth | 7.2% | -115.7% | -254.8% | 995.1% | 0.7% | |
| EBITDA Margin | 4.5% | -0.8% | 1.0% | 8.8% | 9.1% | 0.3% |
| Net Income Margin | 3.8% | -2.3% | 0.4% | 5.7% | 6.0% | 0.4% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.4% | 0.8% | 0.6% | -0.2% |
| ROIC | 6.7% | -2.6% | 1.2% | 20.0% | 17.5% | -2.5% |
| ROE | 7.4% | -4.0% | 0.8% | 13.5% | 12.4% | -1.1% |
| Net Debt/EBITDA | -0.4x | | -1.3x | -0.5x | -1.2x | -0.6x |
Revenue and profitability
Mindteck (India)'s Revenue decreased on 2.9% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mindteck (India)'s CAPEX/Revenue was 0.61% in FY2015. Mindteck (India) showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.61%.
Return on investment
The company operates at good ROIC (17.49%) and ROE (12.36%). ROIC decreased on 2.5 pp from 20.0% to 17.5% in FY2015. ROE decreased slightly on 1.1 pp from 13.5% to 12.4% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 123% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.4x and P/E 10.0x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in IT Software Products
Below you can find Mindteck (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 |
|---|
| 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% |
| Aurionpro Solutions ($AURIONPRO) | | 13.9% | 17.7% | 14.2% | 13.6% |
| |
|---|
| Median (14 companies) | 101.6% | 16.5% | 15.4% | 14.2% | 9.7% |
|---|
| Mindteck (India) ($MINDTECK) | | -7.6% | 18.7% | 24.4% | -2.9% |
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% |
| Aurionpro Solutions ($AURIONPRO) | 21.4% | 15.9% | 14.5% | 12.0% | 16.9% |
| |
|---|
| Median (19 companies) | 10.7% | 9.6% | 9.4% | 10.2% | 9.4% |
|---|
| Mindteck (India) ($MINDTECK) | 4.5% | -0.8% | 1.0% | 8.8% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aurionpro Solutions ($AURIONPRO) | 15.7% | 17.5% | 12.3% | 12.6% | 13.4% |
| Mastek ($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 ($POLARIS) | 5.9% | 7.2% | 2.5% | 1.5% | 3.9% |
| |
|---|
| Median (9 companies) | 5.2% | 4.5% | 6.9% | 2.7% | 3.9% |
|---|
| Mindteck (India) ($MINDTECK) | 0.3% | 0.3% | 0.4% | 0.8% | 0.6% |
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% | |
| 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% |
| Blue Star Infotech ($BLUESTINFO) | | | 7.1% | 16.3% | 17.4% |
| |
|---|
| Median (31 companies) | 3.9% | 4.6% | 5.8% | 14.4% | 12.1% |
|---|
| Mindteck (India) ($MINDTECK) | 6.7% | -2.6% | 1.2% | 20.0% | 17.5% |
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 |
| Aurionpro Solutions ($AURIONPRO) | 1.1x | 1.7x | 1.7x | 1.9x | 1.2x |
| Saksoft ($SAKSOFT) | 3.8x | 2.8x | 2.3x | 0.0x | 1.2x |
| Datamatics Global Services ($DATAMATICS) | 0.2x | 0.5x | 0.3x | 0.5x | 0.3x |
| |
|---|
| Median (16 companies) | 0.2x | 0.5x | 0.0x | 0.0x | 0.0x |
|---|
| Mindteck (India) ($MINDTECK) | -0.4x | | -1.3x | -0.5x | -1.2x |
