Andhra Bank revenue jumped on 14.5% in 2015

30-05-2015 • About Andhra Bank ($ANDHRABANK) • By InTwits

Andhra Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Andhra Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
It operates with high leverage: Net Debt/EBITDA is 7.7x while industry average is

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Andhra Bank ($ANDHRABANK) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	94,516	125,998	145,418	164,323	188,156	14.5%
Net Income	12,548	13,345	12,845	4,401	6,558	49.0%
Balance Sheet
Cash	71,846	55,639	60,844	79,123	75,179	-5.0%
Short Term Debt	6,736	6,736	6,472	6,494	7,473	15.1%
Long Term Debt	76,397	82,453	111,258	131,930	153,193	16.1%
Cash flow
Capex	723	837	952	2,222	2,377	7.0%
Ratios
Revenue growth	-60.7%	33.3%	15.4%	13.0%	14.5%
Net Income Margin	13.3%	10.6%	8.8%	2.7%	3.5%	0.8%
CAPEX, % of revenue	0.8%	0.7%	0.7%	1.4%	1.3%	-0.1%
ROE	22.9%	19.0%	16.1%	5.1%	7.0%	1.8%

Revenue and profitability

Andhra Bank's Revenue jumped on 14.5% in FY2015.

Net Income marign increased slightly on 0.81 pp from 2.7% to 3.5% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 the company had CAPEX/Revenue of 1.3%. The company's CAPEX/Revenue increased slightly on 0.60 pp from 0.66% in FY2012 to 1.3% in FY2015. For the last three years the average CAPEX/Revenue was 1.1%.

Leverage (Debt)

Debt jumped on 16.1% in FY2015 while cash decreased on 5.0% in FY2015.

Appendix 1: Peers in Banks

Below you can find Andhra Bank benchmarking vs. other companies in Banks 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
Kotak Mahindra Bank ($KOTAKBANK)		18.4%	22.9%	7.1%	26.1%
Dcb Bank ($DCBBANK)		26.7%	26.2%	22.5%	25.3%
Syndicate Bank ($SYNDIBANK)		32.2%	11.9%	7.9%	20.2%
Yes Bank ($YESBANK)		53.0%	33.7%	21.6%	17.7%
Axis Bank ($AXISBANK)		39.0%	24.5%	13.1%	15.6%
Median (27 companies)	14.4%	28.5%	16.2%	10.3%	10.5%
Andhra Bank ($ANDHRABANK)		33.3%	15.4%	13.0%	14.5%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Bank Of India ($BANKINDIA)	1.6%	2.0%	1.1%	1.5%	3.6%
State Bank Of Mysore ($MYSOREBANK)	1.3%	1.6%	1.3%		3.5%
Jammu & Kashmir Bank ($J&KBANK)	5.6%	1.4%	1.3%	2.2%	3.3%
Lakshmi Vilas Bank ($LAKSHVILAS)	4.4%	2.1%	1.4%	1.6%	2.4%
Dcb Bank ($DCBBANK)	1.6%	9.0%	7.0%	1.6%	1.9%
Median (27 companies)	1.3%	1.2%	1.2%	1.2%	1.3%
Andhra Bank ($ANDHRABANK)	0.8%	0.7%	0.7%	1.4%	1.3%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Karnataka Bank ($KTKBANK)	5.5%	6.8%	10.2%	7.7%	10.4%
Axis Bank ($AXISBANK)	10.2%	9.6%	8.9%	9.1%	8.8%
Yes Bank ($YESBANK)	11.8%	9.8%	8.4%	8.4%	8.7%
Kotak Mahindra Bank ($KOTAKBANK)	7.8%	6.8%	6.5%	7.1%	8.5%
Lakshmi Vilas Bank ($LAKSHVILAS)		6.5%	7.5%	0.7%	6.1%
Median (27 companies)	7.1%	7.2%	6.1%	3.3%	4.5%
Andhra Bank ($ANDHRABANK)

Andhra Bank stock price chart

Andhra Bank financials

mln.	FY2010	FY2011	FY2012

Revenue	240,558	94,516	125,998
EBITDA	0.000	0.000	0.000
Net income	2,855	12,548	13,345
CAPEX	1,218	723.0	837.4
Debt	70,935	83,134	89,189
Cash	66,987	71,846	55,639

About Andhra Bank

Andhra Bank provides various banking products and services to large, medium, and small customers in India. The company operates in Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. It offers deposit products that include savings accounts, current accounts, term deposits, and Demat accounts; and loan products, which comprise housing loans, vehicle loans, educational loans, loans against gold for non-agricultural purposes, personal and professional loans, mortgage loans, and reverse mortgage loans, as well as loans against rent receivables, National Savings Certificates, Kisan Vikas Patra, life insurance policies, and other securities. The company also provides credit, debit, and prepaid cards; payment services; life, and non-life and general health insurance products; and mutual funds. In addition, it offers various credit facilities, such as working capital finance, export import finance, working capital demand loans, bill finance, project finance, insurance finance, term finance, corporate loans, equipment finance, bridge loans, advances against share deposits and rent receivables, loan of credit, bank guarantees, and letters of credit; and project appraisal and loan syndication services. Further, the company provides NRI banking services; services to micro, small, and medium enterprises; short term credit and medium/long term credit for agricultural and allied activities; women empowerment facilities; various agricultural schemes; and rural development measures. Additionally, it offers Internet Banking, mobile banking, and other online services. As of March 31, 2014, the company had 2,114 branches and 1,850 ATMs. Andhra Bank was founded in 1923 and is headquartered in Hyderabad, India.