Delta Corp reports 287% Net Income growth in 2016 and 26.0% Revenue growth
25-04-2016 • About Delta Corp (
$DELTACORP) • By InTwits
Delta Corp reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Delta Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 38.4%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: ₹106m in FY2016, ₹156m in FY2015, ₹779m in FY2014, ₹3,162m in FY2013, ₹3,485m in FY2012
- The company has business model with low profitability: ROIC is 8.2%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Delta Corp's Revenue surged on 26.0%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.7 pp from 22.9% to 33.6% in FY2016.
Net Income margin surged on 18.9 pp from -7.6% to 11.3% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -7.6%.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.8%. The company showed big decline in CAPEX/Revenue of 71.5 pp from 74.3% in FY2013 to 2.8% in FY2016. Average CAPEX/Revenue for the last three years was 7.3%. CAPEX as a % of Revenue followed a declining trend at -25.4 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (8.2%) and ROE (5.4%). ROIC increased on 5.3 pp from 2.9% to 8.2% in FY2016. ROE increased on 8.4 pp from -3.0% to 5.4% in FY2016.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 3.2x from 4.6x to 1.4x in FY2016. Debt dropped on 39.7% while cash surged on 10.2%.
Delta Corp has no short term refinancing risk: cash is higher than short term debt (214.0%).
Valuation and dividends
Delta Corp's trades at EV/EBITDA 17.5x and P/E 47.9x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 19.1x with the industry average at 22.8x.
Financial and operational results
Delta Corp ($DELTACORP) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,649 | 4,254 | 5,586 | 3,000 | 3,779 | 26.0% |
| EBITDA | 1,010 | 1,008 | 1,508 | 688 | 1,270 | 84.7% |
| Net Income | 501 | 293 | 353 | -228 | 426 | |
Balance Sheet
|
|---|
| Cash | 1,299 | 460 | 352 | 203 | 223 | 10.2% |
| Short Term Debt | 1,324 | 1,835 | 1,117 | 1,132 | 104 | -90.8% |
| Long Term Debt | 3,230 | 3,015 | 2,407 | 2,239 | 1,928 | -13.9% |
Cash flow
|
|---|
| Capex | 3,485 | 3,162 | 779 | 156 | 106 | -31.8% |
Ratios
|
|---|
| Revenue growth | -2.9% | 16.6% | 31.3% | -46.3% | 26.0% | |
| EBITDA growth | -45.5% | -0.2% | 49.5% | -54.4% | 84.7% | |
|
|---|
| EBITDA Margin | 27.7% | 23.7% | 27.0% | 22.9% | 33.6% | 10.7% |
| Net Income Margin | 13.7% | 6.9% | 6.3% | -7.6% | 11.3% | 18.9% |
| CAPEX, % of revenue | 95.5% | 74.3% | 14.0% | 5.2% | 2.8% | -2.4% |
|
|---|
| ROIC | 8.5% | 6.7% | 10.1% | 2.9% | 8.2% | 5.3% |
| ROE | 7.2% | 3.8% | 4.6% | -3.0% | 5.4% | 8.4% |
| Net Debt/EBITDA | 3.2x | 4.4x | 2.1x | 4.6x | 1.4x | -3.2x |
Peers in Misc.Commercial Services
Below you can find Delta Corp benchmarking vs. other companies in Misc.Commercial Services 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crest Ventures Limited ($CREST) | -39.7% | 9.2% | -0.8% | 55.0% | - |
| Trinity Tradelink Limited ($TRITRADE) | - | - | 408,047.0% | 28.3% | - |
| Ganesha Ecosphere ($GANECOS) | 32.3% | 12.9% | 14.7% | 24.7% | - |
| Centum Electronics ($CENTUM) | 1.4% | 9.8% | 50.4% | 14.8% | - |
| |
|---|
| Median (4 companies) | 1.4% | 9.8% | 32.6% | 26.5% | - |
|---|
| Delta Corp ($DELTACORP) | - | 16.6% | 31.3% | -46.3% | 26.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centum Electronics ($CENTUM) | 12.8% | 16.6% | 20.6% | 20.3% | - |
| Greencrest Financial Services ($GREENCREST) | - | - | - | 14.0% | - |
| Ganesha Ecosphere ($GANECOS) | 10.8% | 11.1% | 11.0% | 10.1% | - |
| Crest Ventures Limited ($CREST) | 4.9% | 13.4% | 21.8% | 4.2% | - |
| Sawaca Business Machines ($SAWABUSI) | - | - | - | 3.9% | - |
| |
|---|
| Median (7 companies) | 10.8% | 13.4% | 15.8% | 4.2% | - |
|---|
| Delta Corp ($DELTACORP) | 27.7% | 23.7% | 27.0% | 22.9% | 33.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ganesha Ecosphere ($GANECOS) | 6.9% | 23.4% | 15.4% | 4.6% | - |
| Centum Electronics ($CENTUM) | 5.5% | 2.4% | 6.7% | 3.9% | - |
| Greencrest Financial Services ($GREENCREST) | - | - | - | 0.0% | - |
| Lifeline Drugs & Pharma ($LIFELINE) | - | - | - | 0.0% | - |
| |
|---|
| Median (4 companies) | 5.5% | 3.2% | 5.6% | 2.0% | - |
|---|
| Delta Corp ($DELTACORP) | 95.5% | 74.3% | 14.0% | 5.2% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centum Electronics ($CENTUM) | 10.6% | 16.9% | 35.8% | 32.8% | - |
| Ganesha Ecosphere ($GANECOS) | 18.6% | 15.8% | 13.2% | 12.3% | - |
| Trinity Tradelink Limited ($TRITRADE) | -138.6% | -242.1% | 5.1% | 12.3% | - |
| Greencrest Financial Services ($GREENCREST) | - | 1.8% | 2.2% | 3.1% | - |
| Lifeline Drugs & Pharma ($LIFELINE) | 3.3% | 2.8% | 1.2% | -3.3% | - |
| |
|---|
| Median (11 companies) | 4.9% | 5.6% | 5.1% | 12.3% | - |
|---|
| Delta Corp ($DELTACORP) | 8.5% | 6.7% | 10.1% | 2.9% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ganesha Ecosphere ($GANECOS) | 2.1x | 3.6x | 3.9x | 3.0x | - |
| Trinity Tradelink Limited ($TRITRADE) | - | - | -2.9x | 1.0x | - |
| Centum Electronics ($CENTUM) | 1.9x | 1.2x | 0.5x | 0.4x | - |
| Sawaca Business Machines ($SAWABUSI) | - | - | -1.0x | 0.0x | - |
| Crest Ventures Limited ($CREST) | -1.8x | 0.2x | 2.8x | 0.0x | - |
| |
|---|
| Median (6 companies) | 1.6x | 0.9x | -0.3x | 0.2x | - |
|---|
| Delta Corp ($DELTACORP) | 3.2x | 4.4x | 2.1x | 4.6x | 1.4x |
