S.E.Investments Debt jumped on 38.6% and Revenue increased on 7.6%
07-05-2016 • About S.E.Investments (
$SEINV) • By InTwits
S.E.Investments reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- S.E.Investments has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
S.E.Investments's Revenue increased on 7.6%. During the last 5 years Revenue growth bottomed in FY2015 at -13.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.73 pp from 6.1% to 6.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 65.1%.
Net Income margin decreased slightly on 1.1 pp from 23.2% to 22.1% in FY2016. Net Income margin stuck to a declining trend at -2.7 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
S.E.Investments's CAPEX/Revenue was 0.21% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.39%.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 3.2x to 3.9x in FY2016. Debt jumped on 38.6% while cash surged on 87.9%. Net Debt/EBITDA grew at 0.4x per annum in FY2012-FY2016.
S.E.Investments has short term refinancing risk: cash is only 5.1% of short term debt.
Management team
Harish Singh is a S.E.Investments's CFO. Harish Singh has spent 12 years at the company.
Financial and operational results
S.E.Investments ($SEINV) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,218 | 2,384 | 2,194 | 1,906 | 2,050 | 7.6% |
| EBITDA | 1,748 | 1,706 | 1,464 | 1,241 | 1,382 | 11.4% |
| Net Income | 719 | 708 | 560 | 442 | 453 | 2.6% |
Balance Sheet
|
|---|
| Cash | 670 | 601 | 90 | 149 | 279 | 87.9% |
| Short Term Debt | 3,464 | 3,206 | 4,097 | 4,024 | 5,505 | 36.8% |
| Long Term Debt | 1,362 | 662 | 220 | 80 | 185 | 130.4% |
Cash flow
|
|---|
| Capex | 4 | 4 | 5 | 14 | 4 | -68.9% |
Ratios
|
|---|
| Revenue growth | 20.4% | 7.5% | -7.9% | -13.2% | 7.6% | |
| EBITDA growth | 14.2% | -2.4% | -14.1% | -15.3% | 11.4% | |
|
|---|
| EBITDA Margin | 78.8% | 71.6% | 66.7% | 65.1% | 67.4% | 2.3% |
| Net Income Margin | 32.4% | 29.7% | 25.5% | 23.2% | 22.1% | -1.1% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.2% | 0.7% | 0.2% | -0.5% |
|
|---|
| ROE | 19.4% | 17.2% | 11.9% | 8.6% | 8.6% | 0.1% |
| Net Debt/EBITDA | 2.4x | 1.9x | 2.9x | 3.2x | 3.9x | 0.7x |
Peers in Finance (including NBFCs)
Below we provide S.E.Investments benchmarking against other companies in Finance (including NBFCs) 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 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | -11.7% | -24.9% | -7.1% | 188.4% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | - | 0.4% | -0.9% | 64.7% | 39.8% |
| Sks Microfinance ($SKSMICRO) | - | -25.6% | 55.0% | 47.3% | 64.5% |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | - | 12.8% | 25.9% | 27.0% | -12.2% |
| Bajaj Finserv ($BAJAJFINSV) | 59.7% | 28.1% | 18.8% | 26.8% | - |
| |
|---|
| Median (23 companies) | 23.5% | 27.4% | 20.8% | 14.3% | 12.2% |
|---|
| S.E.Investments ($SEINV) | - | 7.5% | -7.9% | -13.2% | 7.6% |
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 ($BAJAJHLDNG) | 96.1% | 95.4% | 92.3% | 92.7% | 91.4% |
| |
|---|
| Median (48 companies) | 64.8% | 65.4% | 65.5% | 49.0% | 64.8% |
|---|
| S.E.Investments ($SEINV) | 78.8% | 71.6% | 66.7% | 65.1% | 67.4% |
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% | 2.5% |
| Bengal & Assam Company ($BENGALASM) | 15.9% | 4.5% | 1.2% | 2.1% | - |
| |
|---|
| Median (21 companies) | 1.0% | 0.8% | 1.1% | 0.7% | 1.1% |
|---|
| S.E.Investments ($SEINV) | 0.2% | 0.1% | 0.2% | 0.7% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | - | 12.0% | 9.7% | 11.9% | 7.8% |
| Sks Microfinance ($SKSMICRO) | - | - | 4.1% | 6.6% | 7.6% |
| 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 ($M&MFIN) | 6.4% | 6.3% | 5.3% | 4.2% | 3.2% |
| |
|---|
| Median (52 companies) | 4.1% | 4.6% | 4.1% | 4.1% | 4.2% |
|---|
| S.E.Investments ($SEINV) | - | - | - | - | - |
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 ($MAGMA) | 7.7x | 8.5x | 7.0x | 7.7x | - |
| |
|---|
| Median (44 companies) | 4.8x | 3.6x | 3.9x | 0.0x | 5.3x |
|---|
| S.E.Investments ($SEINV) | 2.4x | 1.9x | 2.9x | 3.2x | 3.9x |
