Siti Cable Network CAPEX dropped on 39.3% in 2015 while Revenue jumped on 36.2%
29-05-2015 • About Siti Cable Network (
$SITICABLE) • By InTwits
Siti Cable Network reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Siti Cable Network doesn't have a profitable business model yet: FY2015 ROIC is 0.5%
- EBITDA Margin is quite volatile: 15.9% in FY2015, 19.9% in FY2014, 17.5% in FY2013, 1.6% in FY2012, 3.7% in FY2011
- Siti Cable Network has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.4%. At the same time it's a lot of higher than industry average of 10.9%.
- CAPEX is quite volatile: 2,947 in FY2015, 4,853 in FY2014, 3,797 in FY2013, 364 in FY2012, 313 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.5%
- It operates with high leverage: Net Debt/EBITDA is 6.7x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Siti Cable Network ($SITICABLE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,061 | 3,428 | 4,696 | 6,652 | 9,059 | 36.2% |
| EBITDA | 112 | 54 | 821 | 1,324 | 1,436 | 8.5% |
| Net Income | -624 | -913 | -641 | -941 | -1,091 | |
Balance Sheet
|
|---|
| Cash | 889 | 1,476 | 1,264 | 3,516 | 4,298 | 22.2% |
| Short Term Debt | 1,350 | 1,449 | 1,309 | 474 | 4,574 | 865.2% |
| Long Term Debt | 2,141 | 3,031 | 7,786 | 10,484 | 9,375 | -10.6% |
Cash flow
|
|---|
| Capex | 313 | 364 | 3,797 | 4,853 | 2,947 | -39.3% |
Ratios
|
|---|
| Revenue growth | -71.5% | 12.0% | 37.0% | 41.6% | 36.2% | |
| EBITDA growth | -117.9% | -52.3% | 1,430.9% | 61.2% | 8.5% | |
| EBITDA Margin | 3.7% | 1.6% | 17.5% | 19.9% | 15.9% | -4.0% |
| Net Income Margin | -20.4% | -26.6% | -13.6% | -14.1% | -12.0% | 2.1% |
| CAPEX, % of revenue | 10.2% | 10.6% | 80.9% | 73.0% | 32.5% | -40.4% |
| ROIC | -3.2% | -6.0% | 2.9% | 3.8% | 0.5% | -3.3% |
| ROE | | | | | -73.6% | -73.6% |
| Net Debt/EBITDA | 23.2x | 56.0x | 9.5x | 5.6x | 6.7x | 1.1x |
Revenue and profitability
The company's Revenue jumped on 36.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign increased on 2.1 pp from -14.1% to -12.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 32.5%. Siti Cable Network showed fast CAPEX/Revenue growth of 21.9 pp from 10.6% in FY2012 to 32.5% in FY2015. For the last three years the average CAPEX/Revenue was 62.1%.To fuel this fast growth Siti Cable Network made large investments to CAPEX (205% of EBITDA).
Return on investment
The company operates at low but positive ROIC (0.50%) and negative ROE (-73.65%). ROIC decreased on 3.3 pp from 3.8% to 0.50% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.7x and Debt / EBITDA is 9.7x. Net Debt / EBITDA surged on 1.1x from 5.6x to 6.7x in FY2015. Debt jumped on 27.3% in FY2015 while cash surged on 22.2% in FY2015.
Management team
V D Wadhwa is a the company's CEO. V D Wadhwa has spent 5 years at the company.
Appendix 1: Peers in Broadcasting & Cable TV
Below we provide Siti Cable Network benchmarking against other companies in Broadcasting & Cable TV industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
| Zee Media Corporation ($ZEEMEDIA) | | 10.6% | -1.7% | 11.3% | 62.6% |
| Tv18 Broadcast ($TV18BRDCST) | | 72.1% | 21.4% | 16.4% | 17.8% |
| Entertainment Network (India) ($ENIL) | | -32.9% | 9.2% | 13.2% | 14.0% |
| Zee Entertainment Enterprises ($ZEEL) | | 0.6% | 21.7% | 18.6% | 11.5% |
| |
|---|
| Median (9 companies) | | 10.6% | 9.2% | 18.6% | 11.5% |
|---|
| Siti Cable Network ($SITICABLE) | | 12.0% | 37.0% | 41.6% | 36.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 22.5% | 27.7% | 21.0% | 18.2% | 54.7% |
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% |
| Raj Television Network ($RAJTV) | | | | | 29.6% |
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | 28.1% |
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | 25.7% |
| |
|---|
| Median (11 companies) | 16.6% | 18.6% | 21.0% | 18.2% | 24.1% |
|---|
| Siti Cable Network ($SITICABLE) | 3.7% | 1.6% | 17.5% | 19.9% | 15.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | 28.5% |
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | 26.3% |
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
| Balaji Telefilms ($BALAJITELE) | 6.7% | 2.4% | 1.3% | 0.6% | 4.3% |
| Tv18 Broadcast ($TV18BRDCST) | 0.7% | 3.5% | 2.3% | 3.1% | 4.1% |
| |
|---|
| Median (9 companies) | 6.7% | 3.5% | 4.1% | 7.7% | 4.1% |
|---|
| Siti Cable Network ($SITICABLE) | 10.2% | 10.6% | 80.9% | 73.0% | 32.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 5.6% | 8.3% | 4.0% | 1.0% | 39.5% |
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | 24.0% |
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | 22.1% |
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | 9.1% |
| |
|---|
| Median (12 companies) | 2.4% | 3.0% | 3.8% | 5.4% | 9.1% |
|---|
| Siti Cable Network ($SITICABLE) | -3.2% | -6.0% | 2.9% | 3.8% | 0.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | 10.1x |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | 6.0x |
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | 1.4x |
| Tv18 Broadcast ($TV18BRDCST) | 7.9x | | 2.4x | 0.9x | 1.3x |
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
| |
|---|
| Median (10 companies) | -0.1x | -0.4x | 1.5x | 1.6x | 1.0x |
|---|
| Siti Cable Network ($SITICABLE) | 23.2x | 56.0x | 9.5x | 5.6x | 6.7x |
