Vakrangee Net Income surged on 83.9% in 2015 and Revenue jumped on 42.4%
30-05-2015 • About Vakrangee (
$VAKRANGEE) • By InTwits
Vakrangee reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vakrangee has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 43.6 in FY2015, 2,284 in FY2014, 930 in FY2013, 3,745 in FY2012, 605 in FY2011
- The company has highly profitable business model: ROIC is at 36.4%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vakrangee ($VAKRANGEE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,897 | 13,532 | 15,472 | 19,519 | 27,805 | 42.4% |
| EBITDA | 1,388 | 2,415 | 3,815 | 5,346 | 7,235 | 35.3% |
| Net Income | 481 | 709 | 1,043 | 1,750 | 3,218 | 83.9% |
Balance Sheet
|
|---|
| Cash | 90 | 58 | 25 | 26 | 68 | 164.4% |
| Short Term Debt | 1,634 | 3,031 | 3,962 | 4,061 | 3,786 | -6.8% |
| Long Term Debt | 0 | 1,560 | 1,457 | 862 | 374 | -56.6% |
Cash flow
|
|---|
| Capex | 605 | 3,745 | 930 | 2,284 | 44 | -98.1% |
Ratios
|
|---|
| Revenue growth | -72.2% | 52.1% | 14.3% | 26.2% | 42.4% | |
| EBITDA growth | 73.9% | 74.0% | 58.0% | 40.1% | 35.3% | |
| EBITDA Margin | 15.6% | 17.8% | 24.7% | 27.4% | 26.0% | -1.4% |
| Net Income Margin | 5.4% | 5.2% | 6.7% | 9.0% | 11.6% | 2.6% |
| CAPEX, % of revenue | 6.8% | 27.7% | 6.0% | 11.7% | 0.2% | -11.5% |
| ROIC | 17.1% | 20.2% | 21.3% | 28.3% | 36.4% | 8.1% |
| ROE | 14.7% | 18.3% | 22.4% | 27.1% | 32.4% | 5.3% |
| Net Debt/EBITDA | 1.1x | 1.9x | 1.4x | 0.9x | 0.6x | -0.4x |
Revenue and profitability
Vakrangee's Revenue jumped on 42.4% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 27.4% to 26.0% in FY2015.
Net Income marign increased on 2.6 pp from 9.0% to 11.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.16%. The company's CAPEX/Revenue dropped on 27.5 pp from 27.7% in FY2012 to 0.16% in FY2015. It's average CAPEX/Revenue for the last three years was 6.0%.
Return on investment
The company operates at high and attractive ROIC (36.42%) and ROE (32.40%). ROIC increased on 8.1 pp from 28.3% to 36.4% in FY2015. ROE increased on 5.3 pp from 27.1% to 32.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.4x from 0.9x to 0.6x in FY2015. Debt dropped on 15.5% in FY2015 while cash surged on 164% in FY2015.
Appendix 1: Peers in BPO/KPO
Below we provide Vakrangee benchmarking against other companies in BPO/KPO 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Global Solutions ($HGS) | | 44.8% | 27.6% | 26.3% | 12.1% |
| Eclerx Services ($ECLERX) | | 38.2% | 39.7% | 27.3% | 12.0% |
| Firstsource Solutions ($FSL) | | 12.1% | 25.0% | 10.2% | -2.3% |
| Allsec Technologies ($ALLSEC) | | 15.5% | 74.8% | -37.6% | -24.4% |
| |
|---|
| Median (4 companies) | 65.8% | 15.5% | 27.6% | 18.0% | 4.9% |
|---|
| Vakrangee ($VAKRANGEE) | | 52.1% | 14.3% | 26.2% | 42.4% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eclerx Services ($ECLERX) | 55.9% | 40.4% | 38.7% | 42.0% | 33.5% |
| Firstsource Solutions ($FSL) | 14.5% | 8.7% | 9.9% | 11.7% | 12.5% |
| Hinduja Global Solutions ($HGS) | 14.6% | 11.9% | 11.3% | 13.0% | 11.3% |
| Allsec Technologies ($ALLSEC) | 1.9% | -0.2% | 11.4% | -13.5% | -6.1% |
| |
|---|
| Median (4 companies) | 14.5% | 11.9% | 11.3% | 11.7% | 11.9% |
|---|
| Vakrangee ($VAKRANGEE) | 15.6% | 17.8% | 24.7% | 27.4% | 26.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Global Solutions ($HGS) | 6.0% | 31.5% | 7.2% | 6.1% | 5.8% |
| Allsec Technologies ($ALLSEC) | 5.2% | 6.6% | 5.8% | 5.9% | |
| Eclerx Services ($ECLERX) | 7.0% | 5.3% | 4.0% | 2.5% | 6.5% |
| Xchanging Solutions ($XCHANGING) | 2.5% | 3.4% | 2.0% | 1.8% | |
| Firstsource Solutions ($FSL) | 2.1% | 2.3% | 1.4% | 1.2% | 1.5% |
| |
|---|
| Median (5 companies) | 5.2% | 5.3% | 4.0% | 2.5% | 5.8% |
|---|
| Vakrangee ($VAKRANGEE) | 6.8% | 27.7% | 6.0% | 11.7% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eclerx Services ($ECLERX) | 83.3% | 61.1% | 58.7% | 62.4% | 41.0% |
| Hinduja Global Solutions ($HGS) | 9.9% | 8.1% | 8.2% | 12.4% | 11.0% |
| Firstsource Solutions ($FSL) | 7.0% | 4.0% | 7.0% | 9.0% | 9.5% |
| Xchanging Solutions ($XCHANGING) | 1.4% | 8.3% | 6.6% | 2.2% | |
| Allsec Technologies ($ALLSEC) | -8.7% | -13.0% | 19.9% | -40.1% | -26.5% |
| |
|---|
| Median (7 companies) | 9.9% | 8.1% | 7.0% | 9.0% | 10.3% |
|---|
| Vakrangee ($VAKRANGEE) | 17.1% | 20.2% | 21.3% | 28.3% | 36.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firstsource Solutions ($FSL) | 4.3x | 4.2x | 4.2x | 2.8x | 2.5x |
| Hinduja Global Solutions ($HGS) | -3.0x | 0.8x | 1.7x | 1.5x | 1.4x |
| Eclerx Services ($ECLERX) | -0.1x | -0.7x | -0.5x | -0.7x | -0.6x |
| |
|---|
| Median (3 companies) | -0.1x | 0.3x | 1.3x | 0.4x | 1.4x |
|---|
| Vakrangee ($VAKRANGEE) | 1.1x | 1.9x | 1.4x | 0.9x | 0.6x |
