Multi Commodity Exchange Of India CAPEX jumped on 146% and Revenue increased on 5.6%
05-05-2016 • About Multi Commodity Exchange Of India (
$MCX) • By InTwits
Multi Commodity Exchange Of India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Multi Commodity Exchange Of India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: ₹206m in FY2016, ₹84m in FY2015, ₹59m in FY2014, ₹462m in FY2013, ₹206m in FY2012
- The company has business model with low profitability: ROIC is 9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Multi Commodity Exchange Of India's Revenue increased on 5.6%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -35.0% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.8 pp from 4.4% to 7.1% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2015 at 39.4%.
Net Income margin dropped on 38.4 pp from 56.5% to 18.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Multi Commodity Exchange Of India had CAPEX/Revenue of 8.8%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 4.7%.
Return on investment
The company operates at low ROIC (9.7%) and ROE (3.0%). ROIC increased on 4.9 pp from 4.8% to 9.7% in FY2016. ROE decreased on 6.9 pp from 9.9% to 3.0% in FY2016. ROIC followed a declining trend at -7.4 pp per annum in FY2012-FY2016. ROE stuck to a declining trend at -7.4 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash surged on 1,324%.
Valuation and dividends
The company's trades at EV/EBITDA 25.2x and P/E 107.9x while industy averages are 17.8x and 21.9x. Multi Commodity Exchange Of India's EV/(EBITDA-CAPEX) is 28.9x with the industry average at 22.8x.
Financial and operational results
Multi Commodity Exchange Of India ($MCX) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,451 | 5,240 | 3,407 | 2,225 | 2,349 | 5.6% |
| EBITDA | 3,589 | 3,263 | 1,493 | 877 | 1,618 | 84.4% |
| Net Income | 2,867 | 2,992 | 1,532 | 1,258 | 425 | -66.2% |
Balance Sheet
|
|---|
| Cash | 909 | 752 | 531 | 351 | 4,998 | 1,324.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 206 | 462 | 59 | 84 | 206 | 146.0% |
Ratios
|
|---|
| Revenue growth | 47.8% | -3.9% | -35.0% | -34.7% | 5.6% | |
| EBITDA growth | 81.1% | -9.1% | -54.2% | -41.3% | 84.4% | |
|
|---|
| EBITDA Margin | 65.8% | 62.3% | 43.8% | 39.4% | 68.9% | 29.4% |
| Net Income Margin | 52.6% | 57.1% | 45.0% | 56.5% | 18.1% | -38.4% |
| CAPEX, % of revenue | 3.8% | 8.8% | 1.7% | 3.8% | 8.8% | 5.0% |
|
|---|
| ROIC | 35.4% | 27.2% | 9.9% | 4.8% | 9.7% | 4.9% |
| ROE | 31.1% | 27.8% | 13.3% | 9.9% | 3.0% | -6.9% |
| Net Debt/EBITDA | -0.3x | -0.2x | -0.4x | -0.4x | -3.1x | -2.7x |
Peers in Other Financial Services
Below we provide Multi Commodity Exchange Of India 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 |
|---|
| Lkp Finance ($LKPFIN) | - | 20.8% | -4.3% | 89.8% | -28.6% |
| Aditya Birla Money ($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 ($CAPF) | 90.7% | 9.9% | 31.5% | 35.8% | - |
| |
|---|
| Median (10 companies) | 2.5% | 11.8% | 5.9% | 33.7% | -28.6% |
|---|
| Multi Commodity Exchange Of India ($MCX) | - | -3.9% | -35.0% | -34.7% | 5.6% |
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 ($WALLFORT) | - | - | - | 82.5% | - |
| |
|---|
| Median (31 companies) | 34.9% | 38.5% | 43.5% | 31.2% | 27.9% |
|---|
| Multi Commodity Exchange Of India ($MCX) | 65.8% | 62.3% | 43.8% | 39.4% | 68.9% |
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% | - |
| Crisil ($CRISIL) | 4.4% | 1.6% | 1.7% | 1.9% | - |
| Icra ($ICRA) | 2.0% | 2.1% | 13.2% | 1.5% | - |
| Lkp Finance ($LKPFIN) | 3.6% | 1.6% | 3.9% | 1.1% | - |
| |
|---|
| Median (9 companies) | 4.0% | 1.6% | 1.8% | 1.1% | - |
|---|
| Multi Commodity Exchange Of India ($MCX) | 3.8% | 8.8% | 1.7% | 3.8% | 8.8% |
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% | - |
| Religare Enterprises ($RELIGARE) | 2.0% | 3.4% | 2.7% | 4.1% | - |
| Shardul Securities ($SHARDUL) | - | - | - | - | - |
| Indbank Merchant Banking Services ($INDBANK) | - | - | - | - | - |
| |
|---|
| Median (33 companies) | 3.7% | 3.4% | 11.8% | 21.1% | - |
|---|
| Multi Commodity Exchange Of India ($MCX) | 35.4% | 27.2% | 9.9% | 4.8% | 9.7% |
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 ($IBSEC) | 1.6x | 2.5x | 1.9x | 4.0x | - |
| |
|---|
| Median (29 companies) | -0.1x | 1.1x | 0.0x | 0.0x | 0.0x |
|---|
| Multi Commodity Exchange Of India ($MCX) | -0.3x | -0.2x | -0.4x | -0.4x | -3.1x |
