Dcb Bank reports 20.8% revenue growth in FY2016
15-04-2016 • About Dcb Bank (
$DCBBANK) • By InTwits
Dcb Bank reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Dcb Bank is a fast growth stock: FY2016 revenue growth was 20.8%, 5 year revenue CAGR was 24.3% at FY2016 ROIC 5.2%
- Dcb Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: ₹419m in FY2016, ₹298m in FY2015, ₹199m in FY2014, ₹723m in FY2013, ₹739m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dcb Bank's Revenue surged on 20.8%.
Net Income margin decreased slightly on 1.9 pp from 12.0% to 10.1% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2015 at 12.0%.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.2%. Dcb Bank showed decline in CAPEX/Revenue of 4.8 pp from 7.0% in FY2013 to 2.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.9%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 1.6% and was growing since that time.
Return on investment
The company operates at low ROIC (5.2%) and ROE (11.5%). ROIC decreased slightly on 0.85 pp from 6.0% to 5.2% in FY2016. ROE decreased on 2.4 pp from 13.9% to 11.5% in FY2016. During the last 5 years ROE topped in FY2014 at 14.0% and was declining since that time.
Leverage (Debt)
Debt surged on 30.4% while cash jumped on 11.0%.
Dcb Bank has short term refinancing risk: cash is only 25.0% of short term debt.
Management team
Murali M Natrajan is a Dcb Bank's CEO. Murali M Natrajan has spent 11 years with the company.
Financial and operational results
Dcb Bank ($DCBBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,202 | 10,348 | 12,673 | 15,883 | 19,193 | 20.8% |
| Net Income | 551 | 1,021 | 1,514 | 1,912 | 1,945 | 1.7% |
Balance Sheet
|
|---|
| Cash | 4,075 | 3,788 | 5,051 | 6,337 | 7,034 | 11.0% |
| Short Term Debt | 1,513 | 1,596 | 2,252 | 20,969 | 28,170 | 34.3% |
| Long Term Debt | 13,442 | 22,916 | 8,602 | 4,679 | 5,281 | 12.9% |
Cash flow
|
|---|
| Capex | 739 | 723 | 199 | 298 | 419 | 40.8% |
Ratios
|
|---|
| Revenue growth | 26.7% | 26.2% | 22.5% | 25.3% | 20.8% | |
|
|---|
| Net Income Margin | 6.7% | 9.9% | 11.9% | 12.0% | 10.1% | -1.9% |
| CAPEX, % of revenue | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% | 0.3% |
|
|---|
| ROIC | | 3.4% | 5.1% | 6.0% | 5.2% | -0.9% |
| ROE | 7.4% | 10.9% | 14.0% | 13.9% | 11.5% | -2.4% |
Peers in Banks
Below we provide Dcb Bank benchmarking against other companies in Banks 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 18.4% | 22.9% | 7.1% | 26.1% | - |
| Syndicate Bank ($SYNDIBANK) | 32.2% | 11.9% | 7.9% | 20.2% | - |
| Yes Bank ($YESBANK) | 53.0% | 33.7% | 21.6% | 17.7% | - |
| Axis Bank ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| Andhra Bank ($ANDHRABANK) | 33.3% | 15.4% | 13.0% | 14.5% | - |
| |
|---|
| Median (28 companies) | 29.5% | 15.7% | 10.6% | 10.2% | 4.1% |
|---|
| Dcb Bank ($DCBBANK) | - | 26.2% | 22.5% | 25.3% | 20.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bank Of India ($BANKINDIA) | 2.0% | 1.1% | 1.5% | 3.6% | - |
| State Bank Of Mysore ($MYSOREBANK) | 1.6% | 1.3% | - | 3.5% | - |
| Jammu & Kashmir Bank ($J&KBANK) | 1.4% | 1.3% | 2.2% | 3.3% | - |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 2.1% | 1.4% | 1.6% | 2.4% | - |
| Karur Vysya Bank ($KARURVYSYA) | 2.0% | 2.9% | 2.5% | 1.7% | - |
| |
|---|
| Median (28 companies) | 1.2% | 1.2% | 1.2% | 1.3% | 1.6% |
|---|
| Dcb Bank ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Karnataka Bank ($KTKBANK) | 6.8% | 10.2% | 7.7% | 10.4% | - |
| Axis Bank ($AXISBANK) | 9.6% | 8.9% | 9.1% | 8.8% | 7.6% |
| Yes Bank ($YESBANK) | 9.8% | 8.4% | 8.4% | 8.7% | - |
| Kotak Mahindra Bank ($KOTAKBANK) | 6.8% | 6.5% | 7.1% | 8.5% | - |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | - |
| |
|---|
| Median (28 companies) | 7.6% | 6.5% | 3.2% | 4.2% | 4.0% |
|---|
| Dcb Bank ($DCBBANK) | - | 3.4% | 5.1% | 6.0% | 5.2% |
