Centrum Capital EBITDA surged on 93.1% in 2015 and EBITDA Margin increased slightly on 0.88 pp from 1.7% to 2.6%

30-08-2015 • About Centrum Capital ($CENTRUM) • By InTwits

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

EBITDA Margin is quite volatile: 2.6% in FY2015, 1.7% in FY2014, 1.5% in FY2013, 0.1% in FY2012, -0.2% in FY2011
Centrum Capital has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.9x

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

Centrum Capital ($CENTRUM) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	16,271	30,162	28,433	34,991	44,850	28.2%
EBITDA	-28	40	425	605	1,169	93.1%
Net Income	-191	-308	143	250	456	82.5%
Balance Sheet
Cash	491	456	493	509	1,480	190.9%
Short Term Debt	1,550	1,861	1,826	1,414	2,229	57.7%
Long Term Debt	40	40	37	729	306	-58.0%
Cash flow
Capex	30	72	14	27	156	472.3%
Ratios
Revenue growth	-70.3%	85.4%	-5.7%	23.1%	28.2%
EBITDA growth	-112.8%	-243.2%	955.2%	42.4%	93.1%
EBITDA Margin	-0.2%	0.1%	1.5%	1.7%	2.6%	0.9%
Net Income Margin	-1.2%	-1.0%	0.5%	0.7%	1.0%	0.3%
CAPEX, % of revenue	0.2%	0.2%	0.1%	0.1%	0.3%	0.3%
ROE	-8.7%	-14.1%	6.4%	10.2%	17.0%	6.8%
Net Debt/EBITDA		35.9x	3.2x	2.7x	0.9x	-1.8x

Revenue and profitability

Centrum Capital's Revenue surged on 28.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 12.4% to 15.1% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 0.35% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.16%.

Leverage (Debt)

Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 1.8x from 2.7x to 0.9x in FY2015. Debt surged on 18.3% in FY2015 while cash surged on 191% in FY2015.

Appendix 1: Peers in Other Financial Services

Below we provide Centrum Capital benchmarking against other companies in Other Financial 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 5	FY2011	FY2012	FY2013	FY2014	FY2015
Lkp Finance ($LKPFIN)		-35.0%	20.8%	-4.3%	89.8%
Aditya Birla Money ($BIRLAMONEY)		-21.5%	-13.3%	-10.6%	49.0%
Geojit Bnp Paribas Financial Services ($GEOJITBNPP)		-8.6%	2.0%	-12.6%	42.3%
Jm Financial ($JMFINANCIL)		-2.4%	19.3%	-3.4%	39.4%
Capital First ($CAPF)		90.7%	9.9%	31.5%	35.8%
Median (10 companies)	28.4%	2.5%	9.9%	-0.5%	33.7%
Centrum Capital ($CENTRUM)		85.4%	-5.7%	23.1%	28.2%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Twentyfirst Century Management Services ($21STCENMGM)					91.9%
Tcfc Finance ($TCFCFINQ)					88.4%
Frontline Securities ($FRONTSEC)					87.0%
Shardul Securities ($SHARDUL)					84.6%
Wallfort Financial Services ($WALLFORT)					82.5%
Median (31 companies)	36.0%	36.4%	40.9%	43.8%	33.7%
Centrum Capital ($CENTRUM)	-0.2%	0.1%	1.5%	1.7%	2.6%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Jm Financial ($JMFINANCIL)	1.0%	0.9%	0.9%	11.2%	16.9%
Geojit Bnp Paribas Financial Services ($GEOJITBNPP)	5.6%	5.7%	7.8%	3.7%	4.8%
Multi Commodity Exchange Of India ($MCX)	8.5%	3.8%	8.8%	1.7%	3.8%
Icra ($ICRA)	2.4%	2.0%	2.1%	13.2%	1.5%
Lkp Finance ($LKPFIN)	1.2%	3.6%	1.6%	3.9%	1.1%
Median (9 companies)	2.9%	3.8%	1.6%	1.8%	1.1%
Centrum Capital ($CENTRUM)	0.2%	0.2%	0.1%	0.1%	0.3%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Icra ($ICRA)	24.5%	20.7%	17.0%	20.9%	21.1%
Multi Commodity Exchange Of India ($MCX)	21.9%	35.4%	27.2%	9.9%	4.8%
Religare Enterprises ($RELIGARE)	-2.7%	2.0%	3.4%	2.7%	4.1%
Db (International) Stock Brokers ($DBSTOCKBRO)
Indbank Merchant Banking Services ($INDBANK)
Median (33 companies)	21.9%	5.4%	10.2%	9.9%	4.8%
Centrum Capital ($CENTRUM)

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Capital First ($CAPF)	9.1x	7.5x	9.2x	9.1x	7.7x
Religare Enterprises ($RELIGARE)	20.2x	9.2x	6.1x	7.0x	7.2x
Jm Financial ($JMFINANCIL)	6.6x	6.4x	6.4x	4.8x	4.8x
Intec Capital ($INTECCAP)		5.1x	4.9x	4.6x	4.5x
Indiabulls Securities ($IBSEC)	1.6x	1.6x	2.5x	1.9x	4.0x
Median (29 companies)	-0.0x	-0.1x	0.7x	0.0x	0.0x
Centrum Capital ($CENTRUM)		35.9x	3.2x	2.7x	0.9x

Centrum Capital stock price chart

Centrum Capital financials

mln.	FY2010	FY2011	FY2012

Revenue	54,851	16,271	30,162
EBITDA	220.2	-28.129	40.294
Net income	27.748	-191.358	-308.253
CAPEX	22.298	29.818	72.372
Debt	667.9	1,590	1,902
Cash	277.8	491.5	456.2

About Centrum Capital

Centrum Capital Limited, together with its subsidiaries, provides various financial services primarily in India. It operates through two segments, Investment Banking and Trading in Bonds. The company offers investment banking services, including equity and debt initial public offerings (IPO), follow-on public offerings and rights issues, pre-IPO placements, qualified institutional placements, American depository receipts, global depository receipts, convertible issuances, buybacks and delisting, open offers and takeovers, and valuation advisory services, as well as alternative investment markets; and mergers and acquisitions, private equity, and structured finance advisory services. Its investment banking services also comprise corporate credit that include project finance, term loans, working capital/short-term loans, trade finance, non fund based facilities, and lease financing; debt restructuring; stressed asset resolutions and one time settlement; and debt placement products, such as money market instruments, debt capital markets instruments, fixed income instruments, and funds. In addition, the company provides discretionary and non-discretionary portfolio management, sales trading, research, economy and strategy, quantitative and alternative research, stock idea, derivatives, and equity advisory services; wealth management services; foreign exchange, inward and overseas remittance, travel cards, and travel insurance services; and travel and tour services, such as organizing visas, arranging foreign currency and travelers cheques, providing international calling cards, and undertaking airline/railway ticketing and hotel booking. It serves institutional investors, hedge funds, FIIs, mutual funds, insurance companies, business houses, banks, public sector units, HNI and retail investors, entrepreneurs, trusts, and provident funds. Centrum Capital Limited was incorporated in 1977 and is based in Mumbai, India.