Bengal & Assam Company EBITDA surged on 46.0% in 2015 and EBITDA Margin increased on 2.4 pp from 8.0% to 10.3%
31-05-2015 • About Bengal & Assam Company (
$BENGALASM) • By InTwits
Bengal & Assam Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bengal & Assam Company has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 279 in FY2015, 138 in FY2014, 514 in FY2013, 1,507 in FY2012, 352 in FY2011
- It operates with medium-size leverage: Net Debt/EBITDA is 3.0x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bengal & Assam Company ($BENGALASM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,570 | 9,491 | 11,356 | 11,679 | 13,160 | 12.7% |
| EBITDA | 1,254 | 1,030 | 1,619 | 933 | 1,362 | 46.0% |
| Net Income | 630 | 304 | 349 | 726 | 547 | -24.7% |
Balance Sheet
|
|---|
| Cash | 75 | 199 | 55 | 58 | 70 | 20.3% |
| Short Term Debt | 1,493 | 2,260 | 2,823 | 2,527 | 3,067 | 21.4% |
| Long Term Debt | 274 | 2,175 | 3,093 | 1,185 | 1,029 | -13.2% |
Cash flow
|
|---|
| Capex | 352 | 1,507 | 514 | 138 | 279 | 101.9% |
Ratios
|
|---|
| Revenue growth | -51.4% | 25.4% | 19.7% | 2.8% | 12.7% | |
| EBITDA growth | 13.0% | -17.9% | 57.3% | -42.4% | 46.0% | |
| EBITDA Margin | 16.6% | 10.8% | 14.3% | 8.0% | 10.3% | 2.4% |
| Net Income Margin | 8.3% | 3.2% | 3.1% | 6.2% | 4.2% | -2.1% |
| CAPEX, % of revenue | 4.6% | 15.9% | 4.5% | 1.2% | 2.1% | 0.9% |
| ROE | 13.3% | 6.6% | 7.9% | 14.6% | 6.0% | -8.6% |
| Net Debt/EBITDA | 1.3x | 4.1x | 3.6x | 3.9x | 3.0x | -1.0x |
Revenue and profitability
Bengal & Assam Company's Revenue surged on 12.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign decreased on 2.1 pp from 6.2% to 4.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Bengal & Assam Company had CAPEX/Revenue of 2.1%. The company showed big decline in CAPEX/Revenue of 13.8 pp from 15.9% in FY2012 to 2.1% in FY2015. For the last three years the average CAPEX/Revenue was 2.6%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 3.0x. Net Debt / EBITDA dropped on 1.0x from 3.9x to 3.0x in FY2015. Debt jumped on 10.3% in FY2015 while cash jumped on 20.3% in FY2015.
Appendix 1: Peers in Finance (including NBFCs)
Below we provide Bengal & Assam Company benchmarking against other companies in Finance (including NBFCs) 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | | -11.7% | -24.9% | -7.1% | 188.4% |
| Motilal Oswal Financial Services ($MOTILALOFS) | | -21.6% | 0.4% | -0.9% | 64.7% |
| Sks Microfinance ($SKSMICRO) | | -62.8% | -25.6% | 55.0% | 47.3% |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | | -66.6% | 12.7% | 23.2% | 29.9% |
| Bajaj Finserv ($BAJAJFINSV) | | 59.7% | 28.1% | 18.8% | 26.8% |
| |
|---|
| Median (23 companies) | | 23.2% | 26.9% | 20.8% | 14.3% |
|---|
| Bengal & Assam Company ($BENGALASM) | | 25.4% | 19.7% | 2.8% | 12.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microse India ($MICROSE) | | | | | 101.1% |
| Pnb Gilts ($PNBGILTS) | 91.8% | 94.0% | 96.4% | 96.4% | 96.1% |
| Jsw Holdings ($JSWHL) | | | | | 93.8% |
| Rural Electrification Corporation ($RECLTD) | 97.1% | 97.2% | 97.3% | 96.7% | 93.3% |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 98.7% | 96.2% | 95.5% | 94.4% | 92.7% |
| |
|---|
| Median (46 companies) | 69.5% | 70.0% | 67.8% | 66.4% | 49.0% |
|---|
| Bengal & Assam Company ($BENGALASM) | 16.6% | 10.8% | 14.3% | 8.0% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 5.5% | 1.0% | 1.3% | 4.5% | 7.3% |
| Clarus Finance & Securities ($CLARUS) | | | | 6.9% | 5.8% |
| Srei Infrastructure Finance ($SREINFRA) | 34.8% | 29.3% | 8.3% | 12.6% | 5.4% |
| Motilal Oswal Financial Services ($MOTILALOFS) | 10.7% | 15.5% | 5.3% | 1.7% | 3.4% |
| Shriram City Union Finance ($SHRIRAMCIT) | 1.3% | 1.8% | 2.0% | 1.0% | 1.2% |
| |
|---|
| Median (21 companies) | 1.7% | 0.6% | 0.7% | 0.9% | 0.7% |
|---|
| Bengal & Assam Company ($BENGALASM) | 4.6% | 15.9% | 4.5% | 1.2% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | | 12.0% | 9.7% | 11.9% |
| Sks Microfinance ($SKSMICRO) | | | | 4.1% | 6.6% |
| Shriram City Union Finance ($SHRIRAMCIT) | | 6.1% | 5.8% | 5.8% | 5.7% |
| Rural Electrification Corporation ($RECLTD) | | | 4.7% | 5.2% | 4.7% |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 7.3% | 6.4% | 6.3% | 5.3% | 4.2% |
| |
|---|
| Median (50 companies) | 6.0% | 4.1% | 4.6% | 4.1% | 4.1% |
|---|
| Bengal & Assam Company ($BENGALASM) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 4.7x | 9.0x | | 10.8x | 8.9x |
| Pnb Gilts ($PNBGILTS) | 9.0x | 14.2x | 11.2x | 11.3x | 8.8x |
| Srei Infrastructure Finance ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | 8.0x |
| Rural Electrification Corporation ($RECLTD) | 8.1x | 8.3x | 8.0x | 7.5x | 8.0x |
| Magma Fincorp ($MAGMA) | 1.5x | 7.7x | 8.5x | 7.0x | 7.7x |
| |
|---|
| Median (42 companies) | 3.0x | 4.8x | 3.6x | 2.9x | 0.9x |
|---|
| Bengal & Assam Company ($BENGALASM) | 1.3x | 4.1x | 3.6x | 3.9x | 3.0x |
