Crisil revenue jumped on 10.1% in 2015 while EBITDA Margin decreased on 2.1 pp from 30.6% to 28.4%
09-02-2016 • About Crisil (
$CRISIL) • By InTwits
Crisil reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crisil is a fast growth stock: FY2015 revenue growth was 10.1%, 5 year revenue CAGR was 17.0% at FY2015 ROIC 43.1%
- EBITDA Margin is declining: 28.4% in FY2015 vs. 30.6% in FY2014 vs. 33.6% in FY2011
- Crisil has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 262 in FY2015, 212 in FY2014, 178 in FY2013, 430 in FY2012, 264 in FY2011
- The company has highly profitable business model: ROIC is at 43.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crisil ($CRISIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,070 | 9,777 | 11,106 | 12,534 | 13,799 | 10.1% |
| EBITDA | 2,712 | 3,276 | 3,606 | 3,830 | 3,923 | 2.4% |
| Net Income | 2,064 | 2,204 | 2,978 | 2,684 | 2,852 | 6.2% |
Balance Sheet
|
|---|
| Cash | 928 | 1,371 | 1,515 | 1,205 | 1,309 | 8.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 264 | 430 | 178 | 212 | 262 | 23.9% |
Ratios
|
|---|
| Revenue growth | 28.4% | 21.2% | 13.6% | 12.9% | 10.1% | |
| EBITDA growth | 22.0% | 20.8% | 10.1% | 6.2% | 2.4% | |
| EBITDA Margin | 33.6% | 33.5% | 32.5% | 30.6% | 28.4% | -2.1% |
| Net Income Margin | 25.6% | 22.5% | 26.8% | 21.4% | 20.7% | -0.8% |
| CAPEX, % of revenue | 3.3% | 4.4% | 1.6% | 1.7% | 1.9% | 0.2% |
| ROIC | 60.1% | 62.5% | 53.7% | 46.4% | 43.1% | -3.4% |
| ROE | 50.8% | 46.6% | 49.5% | 35.3% | 33.5% | -1.8% |
| Net Debt/EBITDA | -0.3x | -0.4x | -0.4x | -0.3x | -0.3x | -0.0x |
Revenue and profitability
Crisil's Revenue jumped on 10.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from 8.1% to 10.0% in FY2015.
Net Income marign decreased slightly on 0.75 pp from 21.4% to 20.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Crisil had CAPEX/Revenue of 1.9%. The company's CAPEX/Revenue decreased on 2.5 pp from 4.4% in FY2012 to 1.9% in FY2015. Average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at high and attractive ROIC (43.08%) and ROE (33.47%). ROIC decreased on 3.4 pp from 46.4% to 43.1% in FY2015. ROE decreased slightly on 1.8 pp from 35.3% to 33.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 8.6% in FY2015.
Valuation
The company's trades at EV/EBITDA 32.7x and P/E 45.5x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 35.0x with the industry average at 4.7x.
Management team
The company's CEO is Ashu Suyash. Ashu Suyash has 3 years tenure at the company. Amish Pramod Mehta is a Crisil's CFO. Amish Pramod Mehta has spent 4 years at the company.
Appendix 1: Peers in Other Financial Services
Below we provide Crisil 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 ($CAPF) | | 90.7% | 9.9% | 31.5% | 35.8% |
| |
|---|
| Median (11 companies) | | 2.5% | 8.1% | -0.5% | 31.6% |
|---|
| Crisil ($CRISIL) | | 21.2% | 13.6% | 12.9% | 10.1% |
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 ($WALLFORT) | | | | | 82.5% |
| |
|---|
| Median (32 companies) | 35.5% | 36.4% | 40.9% | 43.8% | 32.5% |
|---|
| Crisil ($CRISIL) | 33.6% | 33.5% | 32.5% | 30.6% | 28.4% |
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 ($LKPFIN) | 1.2% | 3.6% | 1.6% | 3.9% | 1.1% |
| |
|---|
| Median (10 companies) | 2.1% | 3.6% | 1.6% | 1.8% | 1.1% |
|---|
| Crisil ($CRISIL) | 3.3% | 4.4% | 1.6% | 1.7% | 1.9% |
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 ($INDBANK) | | | | | |
| |
|---|
| Median (34 companies) | 9.6% | 3.7% | 3.4% | 6.3% | 4.8% |
|---|
| Crisil ($CRISIL) | 60.1% | 62.5% | 53.7% | 46.4% | 43.1% |
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 ($IBSEC) | 1.6x | 1.6x | 2.5x | 1.9x | 4.0x |
| |
|---|
| Median (30 companies) | 0.0x | 0.0x | 1.8x | 0.0x | 0.0x |
|---|
| Crisil ($CRISIL) | -0.3x | -0.4x | -0.4x | -0.3x | -0.3x |
