Sri Adhikari Brothers Television Network CAPEX surged on 673% in 2015 while Revenue dropped on 42.6%
29-05-2015 • About Sri Adhikari Brothers Television Network (
$SABTN) • By InTwits
Sri Adhikari Brothers Television Network reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sri Adhikari Brothers Television Network is a company in decline: FY2015 revenue growth was -42.6%, 5 years revenue CAGR was -2.0%
- EBITDA Margin is expanding: 43.7% in FY2015 vs. 27.5% in FY2014 vs. 2.1% in FY2011
- EBITDA Margin is quite volatile: 43.7% in FY2015, 27.5% in FY2014, 24.7% in FY2013, 7.5% in FY2012, 2.1% in FY2011
- Sri Adhikari Brothers Television Network has high CAPEX intensity: 5 year average CAPEX/Revenue was 57.9%. At the same time it's a lot of higher than industry average of 21.8%.
- CAPEX is quite volatile: 1,311 in FY2015, 170 in FY2014, 82.2 in FY2013, 382 in FY2012, 588 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sri Adhikari Brothers Television Network ($SABTN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 493 | 1,320 | 1,612 | 1,804 | 1,035 | -42.6% |
| EBITDA | 10 | 99 | 399 | 495 | 452 | -8.6% |
| Net Income | -114 | -227 | 9 | 48 | 86 | 78.0% |
Balance Sheet
|
|---|
| Cash | 18 | 8 | 16 | 24 | 89 | 277.0% |
| Short Term Debt | 166 | 376 | 594 | 609 | 100 | -83.6% |
| Long Term Debt | 994 | 1,223 | 832 | 629 | 1,342 | 113.4% |
Cash flow
|
|---|
| Capex | 588 | 382 | 82 | 170 | 1,311 | 673.2% |
Ratios
|
|---|
| Revenue growth | -56.9% | 167.5% | 22.2% | 11.9% | -42.6% | |
| EBITDA growth | -90.3% | 875.1% | 302.9% | 24.2% | -8.6% | |
| EBITDA Margin | 2.1% | 7.5% | 24.7% | 27.5% | 43.7% | 16.3% |
| Net Income Margin | -23.2% | -17.2% | 0.5% | 2.7% | 8.3% | 5.6% |
| CAPEX, % of revenue | 119.1% | 28.9% | 5.1% | 9.4% | 126.7% | 117.3% |
| ROIC | -4.8% | -4.4% | 7.1% | 10.6% | 4.8% | -5.8% |
| ROE | -8.2% | -17.1% | 0.7% | 3.4% | 4.7% | 1.3% |
| Net Debt/EBITDA | 112.5x | 16.1x | 3.5x | 2.5x | 3.0x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 42.6% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 16.3 pp from 27.5% to 43.7% in FY2015.
Net Income marign increased on 5.6 pp from 2.7% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sri Adhikari Brothers Television Network's CAPEX/Revenue was 127% in FY2015. Sri Adhikari Brothers Television Network's CAPEX/Revenue surged on 97.7 pp from 28.9% in FY2012 to 127% in FY2015. Average CAPEX/Revenue for the last three years was 47.1%.Battling declining revenue the company made large investments to CAPEX (290% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.84%) and ROE (4.66%). ROIC decreased on 5.8 pp from 10.6% to 4.8% in FY2015. ROE increased slightly on 1.3 pp from 3.4% to 4.7% in FY2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 2.5x to 3.0x in FY2015. Debt surged on 16.5% in FY2015 while cash surged on 277% in FY2015.
Appendix 1: Peers in Movies & Entertainment
Below you can find Sri Adhikari Brothers Television Network 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 |
|---|
| Eros International Media ($EROSMEDIA) | | 33.5% | 13.1% | 6.2% | 25.3% |
| Shemaroo Entertainment ($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% |
| Mukta Arts ($MUKTAARTS) | | 5.0% | 22.4% | 8.2% | -58.4% |
| |
|---|
| Median (5 companies) | -86.1% | 15.0% | 14.6% | 7.2% | 5.1% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | | 167.5% | 22.2% | 11.9% | -42.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eros International Media ($EROSMEDIA) | 57.9% | 61.2% | 65.7% | 67.6% | 61.2% |
| Picturehouse Media ($PICTUREHS) | | | | | 54.1% |
| Dq Entertainment (International) ($DQE) | 36.4% | 41.8% | 48.8% | 40.2% | 50.5% |
| Mukta Arts ($MUKTAARTS) | 9.2% | 6.4% | 4.0% | 1.0% | 29.8% |
| Shemaroo Entertainment ($SHEMAROO) | 22.4% | 28.4% | 27.3% | 24.8% | 27.1% |
| |
|---|
| Median (8 companies) | 22.4% | 23.1% | 26.2% | 24.8% | 28.4% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 2.1% | 7.5% | 24.7% | 27.5% | 43.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Eros International Media ($EROSMEDIA) | 77.5% | 56.1% | 0.1% | 0.0% | 0.2% |
| |
|---|
| Median (5 companies) | 18.1% | 5.5% | 2.0% | 0.4% | 0.6% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 119.1% | 28.9% | 5.1% | 9.4% | 126.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shemaroo Entertainment ($SHEMAROO) | 17.2% | 23.5% | 22.9% | 21.0% | 21.8% |
| Eros International Media ($EROSMEDIA) | 21.0% | 18.4% | 15.2% | 17.6% | 17.7% |
| Picturehouse Media ($PICTUREHS) | 23.0% | 15.6% | 17.3% | 16.9% | 12.0% |
| Saregama India ($SAREGAMA) | -10.6% | 4.1% | 1.7% | 8.2% | 3.4% |
| Dq Entertainment (International) ($DQE) | 9.1% | 9.4% | 9.3% | 6.2% | 3.4% |
| |
|---|
| Median (13 companies) | 13.4% | 6.7% | 8.4% | 8.2% | 12.0% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | -4.8% | -4.4% | 7.1% | 10.6% | 4.8% |
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 |
| Shemaroo Entertainment ($SHEMAROO) | 2.5x | 1.7x | 1.9x | 2.3x | 1.2x |
| Eros International Media ($EROSMEDIA) | 0.3x | 0.5x | 0.5x | 0.4x | 0.4x |
| Saregama India ($SAREGAMA) | 10.1x | 2.4x | 3.1x | 0.2x | 0.2x |
| |
|---|
| Median (7 companies) | 2.1x | 1.9x | 2.1x | 0.4x | 0.4x |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 112.5x | 16.1x | 3.5x | 2.5x | 3.0x |
