Veritas (India) reports 45.3% EBITDA growth and 25.0% Revenue growth
30-05-2015 • About Veritas (India) (
$VERITAS) • By InTwits
Veritas (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with low profitability: ROIC is at 7.2%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Veritas (India) ($VERITAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,157 | 7,902 | 9,142 | 12,021 | 15,027 | 25.0% |
| EBITDA | 307 | 165 | 264 | 393 | 571 | 45.3% |
| Net Income | 243 | 135 | 193 | 310 | 480 | 54.8% |
Balance Sheet
|
|---|
| Cash | 64 | 55 | 157 | 124 | 153 | 23.6% |
| Short Term Debt | 99 | 351 | 1,128 | 1,367 | 1,410 | 3.2% |
| Long Term Debt | 57 | 38 | 31 | 21 | 684 | 3,107.7% |
Cash flow
|
|---|
| Capex | 178 | 41 | | | 1 | |
Ratios
|
|---|
| Revenue growth | -65.8% | 28.3% | 15.7% | 31.5% | 25.0% | |
| EBITDA growth | 293.4% | -46.4% | 60.4% | 48.9% | 45.3% | |
| EBITDA Margin | 5.0% | 2.1% | 2.9% | 3.3% | 3.8% | 0.5% |
| Net Income Margin | 3.9% | 1.7% | 2.1% | 2.6% | 3.2% | 0.6% |
| CAPEX, % of revenue | 2.9% | 0.5% | | | 0.0% | 0.0% |
| ROIC | 27.5% | 10.4% | 11.9% | 12.9% | 7.2% | -5.7% |
| ROE | 26.2% | 11.7% | 14.0% | 18.2% | 7.9% | -10.3% |
| Net Debt/EBITDA | 0.3x | 2.0x | 3.8x | 3.2x | 3.4x | 0.2x |
Revenue and profitability
The company's Revenue surged on 25.0% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.6 pp from 2.4% to 5.0% in FY2015.
Net Income marign increased slightly on 0.61 pp from 2.6% to 3.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.0086% in FY2015. The company's CAPEX/Revenue decreased slightly on 0.51 pp from 0.52% in FY2012 to 0.0086% in FY2015.
Return on investment
The company operates at low ROIC (7.21%) and ROE (7.91%). ROIC decreased on 5.7 pp from 12.9% to 7.2% in FY2015. ROE dropped on 10.3 pp from 18.2% to 7.9% in FY2015.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 3.2x to 3.4x in FY2015. Debt jumped on 50.9% in FY2015 while cash jumped on 23.6% in FY2015.
Appendix 1: Peers in Consulting Services
Below we provide Veritas (India) benchmarking against other companies in Consulting Services 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 |
|---|
| Engineers India ($ENGINERSIN) | | 30.7% | -32.1% | -27.0% | -5.7% |
| |
|---|
| Median (1 company) | | 30.7% | -32.1% | -27.0% | -5.7% |
|---|
| Veritas (India) ($VERITAS) | | 28.3% | 15.7% | 31.5% | 25.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Engineers India ($ENGINERSIN) | 23.3% | 19.4% | 23.6% | 21.1% | 13.5% |
| Artefact Projects ($ARTEFACT) | | | | | 13.4% |
| |
|---|
| Median (2 companies) | 23.3% | 19.4% | 23.6% | 21.1% | 13.4% |
|---|
| Veritas (India) ($VERITAS) | 5.0% | 2.1% | 2.9% | 3.3% | 3.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Engineers India ($ENGINERSIN) | 0.0% | 0.0% | 3.2% | 4.4% | 3.6% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 3.2% | 4.4% | 3.6% |
|---|
| Veritas (India) ($VERITAS) | 2.9% | 0.5% | | | 0.0% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Engineers India ($ENGINERSIN) | 52.8% | 44.2% | 26.8% | 14.4% | 8.5% |
| Artefact Projects ($ARTEFACT) | | | | | |
| |
|---|
| Median (2 companies) | 52.8% | 44.2% | 26.8% | 14.4% | 8.5% |
|---|
| Veritas (India) ($VERITAS) | 27.5% | 10.4% | 11.9% | 12.9% | 7.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Artefact Projects ($ARTEFACT) | 3.7x | 0.0x | 3.6x | | 0.0x |
| Engineers India ($ENGINERSIN) | -0.1x | -0.0x | -0.0x | -0.0x | -0.1x |
| |
|---|
| Median (2 companies) | 1.8x | -0.0x | 1.8x | -0.0x | -0.0x |
|---|
| Veritas (India) ($VERITAS) | 0.3x | 2.0x | 3.8x | 3.2x | 3.4x |
