Andhra Bank reports 5.4% revenue growth in FY2016

07-05-2016 • About Andhra Bank ($ANDHRABANK) • By InTwits

Andhra Bank reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

Andhra Bank is a growth stock: FY2016 revenue growth was 5.4%, 5 year revenue CAGR was 16.0% at FY2016 ROIC
Andhra Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 1.5%
CAPEX is quite volatile: ₹2,716m in FY2016, ₹2,377m in FY2015, ₹2,222m in FY2014, ₹952m in FY2013, ₹837m in FY2012
It operates with high leverage: Net Debt/EBITDA is 14.9x while industry average is

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Andhra Bank's Revenue increased on 5.4%. Revenue decline was accelerating on average at -5.7 pp per annum in the last 5 years.

Net Income margin decreased slightly on 0.67 pp from 3.5% to 2.8% in FY2016. Net Income margin declined at -2.1 pp per annum in the last 5 years.

Investments (CAPEX, working capital and M&A)

In FY2016 Andhra Bank had CAPEX/Revenue of 1.4%. CAPEX/Revenue increased slightly on 0.71 pp from 0.65% in FY2013 to 1.4% in FY2016. It's average CAPEX/Revenue for the last three years was 1.3%.

Leverage (Debt)

Debt dropped on 33.9% while cash jumped on 16.9%.

Andhra Bank has no short term refinancing risk: cash is higher than short term debt (978.4%).

Management team

The company's CEO Suresh Natwarlal Patel has spent 4 years with the company.

Financial and operational results

Andhra Bank ($ANDHRABANK) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	125,998	145,418	164,323	188,156	198,382	5.4%
Net Income	13,345	12,845	4,401	6,558	5,580	-14.9%
Balance Sheet
Cash	55,639	60,844	79,123	75,179	87,916	16.9%
Short Term Debt	6,736	6,472	6,494	7,473	8,986	20.2%
Long Term Debt	82,453	111,258	131,930	153,193	97,226	-36.5%
Cash flow
Capex	837	952	2,222	2,377	2,716	14.3%
Ratios
Revenue growth	33.3%	15.4%	13.0%	14.5%	5.4%

Net Income Margin	10.6%	8.8%	2.7%	3.5%	2.8%	-0.7%
CAPEX, % of revenue	0.7%	0.7%	1.4%	1.3%	1.4%	0.1%

ROE	19.0%	16.1%	5.1%	7.0%	5.3%	-1.7%

Peers in Banks

Below we provide Andhra Bank benchmarking against other companies in Banks 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
Kotak Mahindra Bank ($KOTAKBANK)	18.4%	22.9%	7.1%	26.1%	-
Dcb Bank ($DCBBANK)	-	26.2%	22.5%	25.3%	20.8%
Syndicate Bank ($SYNDIBANK)	32.2%	11.9%	7.9%	20.2%	-
Yes Bank ($YESBANK)	-	33.7%	21.6%	17.7%	18.9%
Axis Bank ($AXISBANK)	-	24.5%	13.1%	15.6%	14.9%
Median (28 companies)	29.3%	16.7%	10.6%	10.2%	6.6%
Andhra Bank ($ANDHRABANK)	-	15.4%	13.0%	14.5%	5.4%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bank Of India ($BANKINDIA)	2.0%	1.1%	1.5%	3.6%	-
State Bank Of Mysore ($MYSOREBANK)	1.6%	1.3%	-	3.5%	1.4%
Jammu & Kashmir Bank ($J&KBANK)	1.4%	1.3%	2.2%	3.3%	-
Lakshmi Vilas Bank ($LAKSHVILAS)	2.1%	1.4%	1.6%	2.4%	2.4%
Dcb Bank ($DCBBANK)	9.0%	7.0%	1.6%	1.9%	2.2%
Median (28 companies)	1.3%	1.2%	1.2%	1.3%	1.5%
Andhra Bank ($ANDHRABANK)	0.7%	0.7%	1.4%	1.3%	1.4%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Karnataka Bank ($KTKBANK)	6.8%	10.2%	7.7%	10.4%	-
Axis Bank ($AXISBANK)	9.6%	8.9%	9.1%	8.8%	7.6%
Yes Bank ($YESBANK)	9.8%	8.4%	8.4%	8.7%	9.0%
Kotak Mahindra Bank ($KOTAKBANK)	6.8%	6.5%	7.1%	8.5%	-
Lakshmi Vilas Bank ($LAKSHVILAS)	6.5%	7.5%	0.7%	6.1%	5.8%
Median (28 companies)	7.6%	6.3%	3.3%	4.3%	4.7%
Andhra Bank ($ANDHRABANK)	-	-	-	-	-

Andhra Bank stock price chart

Andhra Bank financials

mln.	FY2010	FY2011	FY2012

Revenue	240,558	94,516	125,998
EBITDA	0.000	0.000	0.000
Net income	2,855	12,548	13,345
CAPEX	1,218	723.0	837.4
Debt	70,935	83,134	89,189
Cash	66,987	71,846	55,639

About Andhra Bank

Andhra Bank provides various banking products and services to large, medium, and small customers in India. The company operates in Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. It offers deposit products that include savings accounts, current accounts, term deposits, and Demat accounts; and loan products, which comprise housing loans, vehicle loans, educational loans, loans against gold for non-agricultural purposes, personal and professional loans, mortgage loans, and reverse mortgage loans, as well as loans against rent receivables, National Savings Certificates, Kisan Vikas Patra, life insurance policies, and other securities. The company also provides credit, debit, and prepaid cards; payment services; life, and non-life and general health insurance products; and mutual funds. In addition, it offers various credit facilities, such as working capital finance, export import finance, working capital demand loans, bill finance, project finance, insurance finance, term finance, corporate loans, equipment finance, bridge loans, advances against share deposits and rent receivables, loan of credit, bank guarantees, and letters of credit; and project appraisal and loan syndication services. Further, the company provides NRI banking services; services to micro, small, and medium enterprises; short term credit and medium/long term credit for agricultural and allied activities; women empowerment facilities; various agricultural schemes; and rural development measures. Additionally, it offers Internet Banking, mobile banking, and other online services. As of March 31, 2014, the company had 2,114 branches and 1,850 ATMs. Andhra Bank was founded in 1923 and is headquartered in Hyderabad, India.