Lkp Finance Net Income dropped on 58.4% and Revenue dropped on 28.6%

02-05-2016 • About Lkp Finance ($LKPFIN) • By InTwits

Lkp Finance reported FY2016 financial results today. 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 dropped on 28.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 31.2% to 27.9% in FY2016. During the last 5 years EBITDA Margin topped in FY2013 at 40.9% and was declining since that time.

Net Income margin decreased on 5.2 pp from 12.4% to 7.2% in FY2016.

Financial and operational results

Lkp Finance ($LKPFIN) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	652	787	754	1,431	1,022	-28.6%
EBITDA	189	322	244	447	285	-36.3%
Net Income	36	34	25	178	74	-58.4%
Balance Sheet
Cash	46	60	66	119
Short Term Debt	1,301	1,840	1,155	1,645
Long Term Debt	42	82	2	19
Cash flow
Capex	23	13	30	15
Ratios
Revenue growth	-35.0%	20.8%	-4.3%	89.8%	-28.6%
EBITDA growth	-54.7%	70.3%	-24.3%	83.4%	-36.3%

EBITDA Margin	29.0%	40.9%	32.3%	31.2%	27.9%	-3.4%
Net Income Margin	5.5%	4.4%	3.3%	12.4%	7.2%	-5.2%
CAPEX, % of revenue	3.6%	1.6%	3.9%	1.1%

ROE	2.3%	2.2%	1.6%	11.6%
Net Debt/EBITDA	6.9x	5.8x	4.5x	3.5x	0.0x

Peers in Other Financial Services

Below we provide Lkp Finance 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	FY2012	FY2013	FY2014	FY2015	FY2016
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%	-
Indiabulls Securities ($IBSEC)	-48.1%	0.1%	58.0%	31.6%	-
Median (10 companies)	7.5%	9.0%	5.9%	26.5%	-
Lkp Finance ($LKPFIN)	-	20.8%	-4.3%	89.8%	-28.6%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
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 ($WALLFORT)	-	-	-	82.5%	-
Median (31 companies)	39.8%	46.9%	48.8%	33.7%	-
Lkp Finance ($LKPFIN)	29.0%	40.9%	32.3%	31.2%	27.9%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Jm Financial ($JMFINANCIL)	0.9%	0.9%	11.2%	16.9%	-
Geojit Bnp Paribas Financial Services ($GEOJITBNPP)	5.7%	7.8%	3.7%	4.8%	-
Multi Commodity Exchange Of India ($MCX)	3.8%	8.8%	1.7%	3.8%	-
Crisil ($CRISIL)	4.4%	1.6%	1.7%	1.9%	-
Icra ($ICRA)	2.0%	2.1%	13.2%	1.5%	-
Median (9 companies)	4.1%	1.6%	1.7%	1.5%	-
Lkp Finance ($LKPFIN)	3.6%	1.6%	3.9%	1.1%	-

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Crisil ($CRISIL)	62.5%	53.7%	46.4%	43.1%	-
Icra ($ICRA)	20.7%	17.0%	20.9%	21.1%	-
Multi Commodity Exchange Of India ($MCX)	35.4%	27.2%	9.9%	4.8%	-
Religare Enterprises ($RELIGARE)	2.0%	3.4%	2.7%	4.1%	-
Shardul Securities ($SHARDUL)	-	-	-	-	-
Median (33 companies)	5.4%	10.2%	9.9%	12.9%	-
Lkp Finance ($LKPFIN)	-	-	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Capital First ($CAPF)	7.5x	9.2x	9.1x	7.7x	-
Religare Enterprises ($RELIGARE)	9.2x	6.1x	7.0x	7.2x	-
Jm Financial ($JMFINANCIL)	6.4x	6.4x	4.8x	4.8x	-
Intec Capital ($INTECCAP)	5.1x	4.9x	4.6x	4.5x	-
Indiabulls Securities ($IBSEC)	1.6x	2.5x	1.9x	4.0x	-
Median (29 companies)	-0.2x	0.3x	0.0x	0.0x	-
Lkp Finance ($LKPFIN)	6.9x	5.8x	4.5x	3.5x	0.0x

Lkp Finance stock price chart

Lkp Finance financials

mln.	FY2010	FY2011	FY2012

Revenue	1,629	1,003	651.8
EBITDA	320.3	417.6	189.3
Net income	234.2	263.3	36.042
CAPEX	12.893	11.790	23.239
Debt	347.1	972.1	1,343
Cash	127.7	37.615	45.564

About Lkp Finance

LKP Finance Limited, through its subsidiaries, operates as a non banking finance company in India. It provides equity broking in cash and derivatives, Internet based trading, Demat services, and research services to mutual funds, financial institutions, foreign and domestic institutional investors, insurance companies, banks, and corporates. The company also offers various debt instruments, including fixed and floating rate debentures, bonds, CDs, CPs, PTCs, Gsecs, T-Bills, and oil/fertilizer/food bonds for banks, institutions, FIIs, mutual funds, insurance companies, primary dealers, corporates, PSUs, and PF trusts; wealth management services to retail, high networth individual, and corporate clients; life and non-life insurance products; and commodity trading in futures, including bullions, metals, energy, and agro commodities. In addition, it provides merchant banking, investment banking, and currency derivatives trading services. The company offers its services through a network of approximately 1,500 outlets in India. LKP Finance Limited was founded in 1948 and is headquartered in Mumbai, India.