Shriram Transport Finance Co reports 15.1% Net Income growth in 2016 and 12.4% Revenue growth
29-04-2016 • About Shriram Transport Finance Co (
$SRTRANSFIN) • By InTwits
Shriram Transport Finance Co reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Shriram Transport Finance Co is a growth stock: FY2016 revenue growth was 12.4%, 5 year revenue CAGR was 13.5% at FY2016 ROIC
- EBITDA Margin is declining: 66.8% in FY2016 vs. 69.4% in FY2015 vs. 82.8% in FY2012
- Shriram Transport Finance Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- It operates with high leverage: Net Debt/EBITDA is 7.1x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 12.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 69.4% to 66.8% in FY2016. EBITDA Margin stuck to a declining trend at -4.7 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin declined at -2.9 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 0.35%. Shriram Transport Finance Co showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.74%.
Leverage (Debt)
Debt level is 7.1x Net Debt / EBITDA and 7.2x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 7.0x to 7.1x in FY2016. Debt increased on 6.6% while cash dropped on 59.7%. Net Debt/EBITDA grew at 1.0x per annum in FY2012-FY2016.
Shriram Transport Finance Co has short term refinancing risk: cash is only 3.3% of short term debt.
Management team
Umesh Govind Revankar is a Shriram Transport Finance Co's CEO. Umesh Govind Revankar has spent 8 years with the company.
Financial and operational results
Shriram Transport Finance Co ($SRTRANSFIN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 61,812 | 70,160 | 84,771 | 91,796 | 103,137 | 12.4% |
| EBITDA | 51,196 | 59,417 | 62,062 | 63,723 | 68,920 | 8.2% |
| Net Income | 13,088 | 14,634 | 13,579 | 10,284 | 11,836 | 15.1% |
Balance Sheet
|
|---|
| Cash | 22,157 | 39,270 | 27,314 | 18,527 | 7,459 | -59.7% |
| Short Term Debt | 34,761 | 133,429 | 182,159 | 167,916 | 228,516 | 36.1% |
| Long Term Debt | 151,603 | 200,434 | 204,145 | 299,030 | 269,384 | -9.9% |
Cash flow
|
|---|
| Capex | 0 | 432 | 1,174 | 452 | 365 | -19.2% |
Ratios
|
|---|
| Revenue growth | 12.8% | 13.5% | 20.8% | 8.3% | 12.4% | |
| EBITDA growth | 13.4% | 16.1% | 4.5% | 2.7% | 8.2% | |
|
|---|
| EBITDA Margin | 82.8% | 84.7% | 73.2% | 69.4% | 66.8% | -2.6% |
| Net Income Margin | 21.2% | 20.9% | 16.0% | 11.2% | 11.5% | 0.3% |
| CAPEX, % of revenue | 0.0% | 0.6% | 1.4% | 0.5% | 0.4% | -0.1% |
|
|---|
| ROE | 24.0% | 21.9% | 17.1% | 11.6% | 12.2% | 0.6% |
| Net Debt/EBITDA | 3.2x | 5.0x | 5.8x | 7.0x | 7.1x | 0.1x |
Peers in Finance (including NBFCs)
Below you can find Shriram Transport Finance Co 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 ($BAJAJFINSV) | 59.7% | 28.1% | 18.8% | 26.8% | - |
| |
|---|
| Median (23 companies) | 20.4% | 27.4% | 19.8% | 14.3% | 9.9% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | - | 13.5% | 20.8% | 8.3% | 12.4% |
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 ($BAJAJHLDNG) | 96.1% | 95.4% | 92.3% | 92.7% | 91.4% |
| |
|---|
| Median (48 companies) | 64.8% | 65.4% | 65.5% | 49.0% | 66.3% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 82.8% | 84.7% | 73.2% | 69.4% | 66.8% |
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 ($BENGALASM) | 15.9% | 4.5% | 1.2% | 2.1% | - |
| |
|---|
| Median (21 companies) | 1.0% | 0.8% | 0.9% | 0.7% | 0.9% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 0.0% | 0.6% | 1.4% | 0.5% | 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 ($SHRIRAMCIT) | 6.1% | 5.8% | 5.8% | 5.7% | 4.6% |
| Rural Electrification Corporation ($RECLTD) | - | 4.7% | 5.2% | 4.7% | - |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 6.4% | 6.3% | 5.3% | 4.2% | 3.2% |
| |
|---|
| Median (52 companies) | 4.1% | 4.6% | 4.1% | 4.1% | 3.2% |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | - | - | - | - | - |
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 ($MAGMA) | 7.7x | 8.5x | 7.0x | 7.7x | - |
| |
|---|
| Median (44 companies) | 4.8x | 3.6x | 2.9x | 0.0x | 5.8x |
|---|
| Shriram Transport Finance Co ($SRTRANSFIN) | 3.2x | 5.0x | 5.8x | 7.0x | 7.1x |
