Muthoot Capital Services Debt surged on 25.4% and EBITDA increased on 9.1%
19-04-2016 • About Muthoot Capital Services (
$MUTHTFN) • By InTwits
Muthoot Capital Services reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Muthoot Capital Services is a fast growth stock: FY2016 revenue growth was 19.5%, 5 year revenue CAGR was 43.8% at FY2016 ROIC
- Muthoot Capital Services has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Muthoot Capital Services's Revenue jumped on 19.5%. Revenue decline was accelerating on average at -16.2 pp per annum in FY2012-FY2016. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.5 pp from 63.7% to 58.2% in FY2016.
Net Income margin decreased slightly on 1.7 pp from 11.7% to 10.0% in FY2016. Net Income margin stuck to a declining trend at -3.5 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.36% in FY2016. The company's CAPEX/Revenue decreased slightly on 1.3 pp from 1.7% in FY2013 to 0.36% in FY2016. It's average CAPEX/Revenue for the last three years was 0.48%.
Leverage (Debt)
Debt level is 6.5x Net Debt / EBITDA and 6.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 5.7x to 6.5x in FY2016. Debt surged on 25.4% while cash jumped on 18.5%. Net Debt/EBITDA stuck to a growing trend at 0.4x per annum in the last 5 years.
Muthoot Capital Services has short term refinancing risk: cash is only 0.9% of short term debt.
Financial and operational results
Muthoot Capital Services ($MUTHTFN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 673 | 1,072 | 1,588 | 1,913 | 2,285 | 19.5% |
| EBITDA | 436 | 692 | 971 | 1,218 | 1,330 | 9.1% |
| Net Income | 155 | 218 | 222 | 223 | 229 | 2.5% |
Balance Sheet
|
|---|
| Cash | 98 | 6 | 79 | 62 | 74 | 18.5% |
| Short Term Debt | 2,043 | 3,424 | 5,006 | 6,873 | 8,488 | 23.5% |
| Long Term Debt | 91 | 98 | 704 | 127 | 288 | 126.9% |
Cash flow
|
|---|
| Capex | 9 | 18 | 12 | 7 | 8 | 24.8% |
Ratios
|
|---|
| Revenue growth | 81.1% | 59.3% | 48.1% | 20.5% | 19.5% | |
| EBITDA growth | 63.5% | 58.8% | 40.3% | 25.5% | 9.1% | |
|
|---|
| EBITDA Margin | 64.8% | 64.6% | 61.2% | 63.7% | 58.2% | -5.5% |
| Net Income Margin | 23.0% | 20.3% | 14.0% | 11.7% | 10.0% | -1.7% |
| CAPEX, % of revenue | 1.3% | 1.7% | 0.7% | 0.3% | 0.4% | 0.0% |
|
|---|
| ROE | 26.8% | 22.9% | 20.1% | 17.7% | 16.3% | -1.4% |
| Net Debt/EBITDA | 4.7x | 5.1x | 5.8x | 5.7x | 6.5x | 0.9x |
Peers in Finance (including NBFCs)
Below you can find Muthoot Capital Services benchmarking vs. other companies in Finance (including NBFCs) industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | - | 12.8% | 25.9% | 27.0% | -12.2% |
| Bajaj Finserv ($BAJAJFINSV) | 59.7% | 28.1% | 18.8% | 26.8% | - |
| |
|---|
| Median (23 companies) | 23.4% | 24.4% | 19.8% | 13.3% | -12.2% |
|---|
| Muthoot Capital Services ($MUTHTFN) | - | 59.3% | 48.1% | 20.5% | 19.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Microse India ($MICROSE) | - | - | - | 101.1% | - |
| Pnb Gilts ($PNBGILTS) | 94.0% | 96.4% | 96.4% | 96.1% | - |
| Jsw Holdings ($JSWHL) | - | - | - | 93.8% | - |
| Rural Electrification Corporation ($RECLTD) | 97.2% | 97.3% | 96.7% | 93.3% | - |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 96.1% | 95.4% | 92.3% | 92.7% | 91.4% |
| |
|---|
| Median (48 companies) | 70.0% | 67.8% | 66.4% | 49.0% | 91.4% |
|---|
| Muthoot Capital Services ($MUTHTFN) | 64.8% | 64.6% | 61.2% | 63.7% | 58.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 1.0% | 1.3% | 4.5% | 7.3% | - |
| Clarus Finance & Securities ($CLARUS) | - | - | 6.9% | 5.8% | - |
| Srei Infrastructure Finance ($SREINFRA) | 30.2% | 8.5% | 12.3% | 5.4% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | 15.5% | 5.3% | 1.7% | 3.4% | - |
| Bengal & Assam Company ($BENGALASM) | 15.9% | 4.5% | 1.2% | 2.1% | - |
| |
|---|
| Median (21 companies) | 0.6% | 0.7% | 1.1% | 0.7% | 0.2% |
|---|
| Muthoot Capital Services ($MUTHTFN) | 1.3% | 1.7% | 0.7% | 0.3% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($M&MFIN) | 6.4% | 6.3% | 5.3% | 4.2% | - |
| |
|---|
| Median (52 companies) | 4.1% | 4.6% | 4.1% | 4.1% | 3.0% |
|---|
| Muthoot Capital Services ($MUTHTFN) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 9.0x | - | 10.8x | 8.9x | - |
| Pnb Gilts ($PNBGILTS) | 14.2x | 11.2x | 11.3x | 8.8x | - |
| Srei Infrastructure Finance ($SREINFRA) | 7.0x | 6.2x | 7.5x | 8.0x | - |
| Rural Electrification Corporation ($RECLTD) | 8.3x | 8.0x | 7.5x | 8.0x | - |
| Magma Fincorp ($MAGMA) | 7.7x | 8.5x | 7.0x | 7.7x | - |
| |
|---|
| Median (44 companies) | 4.5x | 3.6x | 2.9x | 0.0x | -3.3x |
|---|
| Muthoot Capital Services ($MUTHTFN) | 4.7x | 5.1x | 5.8x | 5.7x | 6.5x |
