Aksh Optifibre reports 48.9% CAPEX growth and 46.7% Revenue growth
30-05-2015 • About Aksh Optifibre (
$AKSHOPTFBR) • By InTwits
Aksh Optifibre reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.1% in FY2015, 14.5% in FY2014, 14.7% in FY2013, 11.1% in FY2012, -6.9% in FY2011
- Aksh Optifibre has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 278 in FY2015, 187 in FY2014, 35.7 in FY2013, 16.8 in FY2012, 24.9 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aksh Optifibre ($AKSHOPTFBR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,309 | 2,735 | 2,568 | 2,387 | 3,502 | 46.7% |
| EBITDA | -90 | 303 | 377 | 345 | 458 | 32.7% |
| Net Income | -490 | 196 | 258 | 217 | 253 | 16.9% |
Balance Sheet
|
|---|
| Cash | 3 | 8 | 20 | 8 | 43 | 466.1% |
| Short Term Debt | 414 | 325 | 172 | 478 | 470 | -1.7% |
| Long Term Debt | 679 | 0 | 0 | 876 | 737 | -15.8% |
Cash flow
|
|---|
| Capex | 25 | 17 | 36 | 187 | 278 | 48.9% |
Ratios
|
|---|
| Revenue growth | -68.7% | 108.8% | -6.1% | -7.0% | 46.7% | |
| EBITDA growth | 2.5% | -436.6% | 24.3% | -8.4% | 32.7% | |
| EBITDA Margin | -6.9% | 11.1% | 14.7% | 14.5% | 13.1% | -1.4% |
| Net Income Margin | -37.4% | 7.2% | 10.0% | 9.1% | 7.2% | -1.8% |
| CAPEX, % of revenue | 1.9% | 0.6% | 1.4% | 7.8% | 7.9% | 0.1% |
| ROIC | -6.0% | 4.2% | 5.4% | 4.3% | 5.5% | 1.2% |
| ROE | -18.4% | 5.8% | 7.1% | 5.7% | 6.5% | 0.8% |
| Net Debt/EBITDA | | 1.0x | 0.4x | 3.9x | 2.5x | -1.4x |
Revenue and profitability
Aksh Optifibre's Revenue jumped on 46.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 9.2% to 10.4% in FY2015.
Net Income marign decreased slightly on 1.8 pp from 9.1% to 7.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Aksh Optifibre's CAPEX/Revenue was 7.9% in FY2015. The company showed CAPEX/Revenue growth of 7.3 pp from 0.62% in FY2012 to 7.9% in FY2015. It's average CAPEX/Revenue for the last three years was 5.7%.The company invested a big chunk of EBITDA (60.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (5.47%) and ROE (6.46%). ROIC increased slightly on 1.2 pp from 4.3% to 5.5% in FY2015. ROE increased slightly on 0.75 pp from 5.7% to 6.5% in FY2015.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 3.9x to 2.5x in FY2015. Debt dropped on 10.8% in FY2015 while cash surged on 466% in FY2015.
Appendix 1: Peers in Telecom Cables
Below you can find Aksh Optifibre benchmarking vs. other companies in Telecom Cables 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Himachal Futuristic Communications ($HFCL) | | | 132.4% | 233.0% | 26.4% |
| Vindhya Telelinks ($VINDHYATEL) | | 25.6% | 35.9% | 29.8% | 49.3% |
| Cmi ($CMI) | -61.8% | 23.5% | 21.6% | 18.7% | |
| |
|---|
| Median (3 companies) | -61.8% | 24.6% | 35.9% | 29.8% | 37.8% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | | 108.8% | -6.1% | -7.0% | 46.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Himachal Futuristic Communications ($HFCL) | | 8.7% | 11.4% | 12.9% | 11.1% |
| Vindhya Telelinks ($VINDHYATEL) | 3.2% | -0.4% | 6.8% | 11.3% | 15.0% |
| Cmi ($CMI) | 9.3% | 9.0% | 8.6% | 8.4% | |
| |
|---|
| Median (3 companies) | 6.3% | 8.7% | 8.6% | 11.3% | 13.0% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | -6.9% | 11.1% | 14.7% | 14.5% | 13.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | 3.4% | 0.6% | 1.1% | 5.0% | 3.1% |
| Himachal Futuristic Communications ($HFCL) | | 7.9% | 5.9% | 2.3% | 0.7% |
| Cmi ($CMI) | 1.1% | 1.1% | 1.8% | 0.6% | |
| |
|---|
| Median (3 companies) | 2.3% | 1.1% | 1.8% | 2.3% | 1.9% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 1.9% | 0.6% | 1.4% | 7.8% | 7.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Himachal Futuristic Communications ($HFCL) | | | 9.0% | 30.9% | 22.2% |
| Cmi ($CMI) | 17.3% | 16.7% | 16.1% | 16.6% | |
| Vindhya Telelinks ($VINDHYATEL) | 0.5% | -1.8% | 4.7% | 9.9% | 15.0% |
| Tamilnadu Telecommunications ($TNTELE) | -22.0% | | | | |
| |
|---|
| Median (4 companies) | 0.5% | 7.5% | 9.0% | 16.6% | 18.6% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | -6.0% | 4.2% | 5.4% | 4.3% | 5.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cmi ($CMI) | 2.9x | 4.1x | 4.1x | 4.3x | |
| Vindhya Telelinks ($VINDHYATEL) | 6.7x | | 4.5x | 2.6x | 2.7x |
| Himachal Futuristic Communications ($HFCL) | | 17.8x | 5.3x | 1.1x | 1.0x |
| |
|---|
| Median (3 companies) | 4.8x | 11.0x | 4.5x | 2.6x | 1.9x |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | | 1.0x | 0.4x | 3.9x | 2.5x |
