Kotak Mahindra Bank reports 29.2% revenue growth in FY2016
11-05-2016 • About Kotak Mahindra Bank (
$KOTAKBANK) • By InTwits
Kotak Mahindra Bank reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Kotak Mahindra Bank is a fast growth stock: FY2016 revenue growth was 29.2%, 5 year revenue CAGR was 20.5% at FY2016 ROIC 7.3%
- Kotak Mahindra Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 1.5%
- CAPEX is quite volatile: ₹3,251m in FY2016, ₹2,919m in FY2015, ₹4,423m in FY2014, ₹2,223m in FY2013, ₹1,854m in FY2012
- The company has business model with low profitability: ROIC is 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 29.2%.
Net Income margin decreased slightly on 1.7 pp from 14.1% to 12.4% in FY2016.
Investments (CAPEX, working capital and M&A)
Kotak Mahindra Bank's CAPEX/Revenue was 1.2% in FY2016. Kotak Mahindra Bank's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROE (12.5%) while ROIC is low (7.3%). ROIC decreased slightly on 1.2 pp from 8.5% to 7.3% in FY2016. ROE decreased on 2.3 pp from 14.8% to 12.5% in FY2016.
Leverage (Debt)
Debt jumped on 36.3% while cash surged on 75.5%.
Kotak Mahindra Bank has no short term refinancing risk: cash is higher than short term debt (316.2%).
Financial and operational results
Kotak Mahindra Bank ($KOTAKBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 130,007 | 159,842 | 171,222 | 215,877 | 278,924 | 29.2% |
| Net Income | 18,322 | 21,885 | 24,650 | 30,455 | 34,589 | 13.6% |
Balance Sheet
|
|---|
| Cash | 20,306 | 22,208 | 29,605 | 39,451 | 69,249 | 75.5% |
| Short Term Debt | 10,331 | 17,007 | 14,919 | 22,843 | 21,903 | -4.1% |
| Long Term Debt | 291,947 | 361,720 | 290,071 | 314,149 | 437,298 | 39.2% |
Cash flow
|
|---|
| Capex | 1,854 | 2,223 | 4,423 | 2,919 | 3,251 | 11.4% |
Ratios
|
|---|
| Revenue growth | 18.4% | 22.9% | 7.1% | 26.1% | 29.2% | |
|
|---|
| Net Income Margin | 14.1% | 13.7% | 14.4% | 14.1% | 12.4% | -1.7% |
| CAPEX, % of revenue | 1.4% | 1.4% | 2.6% | 1.4% | 1.2% | -0.2% |
|
|---|
| ROIC | 6.8% | 6.5% | 7.1% | 8.5% | 7.3% | -1.2% |
| ROE | 15.3% | 15.5% | 14.4% | 14.8% | 12.5% | -2.3% |
Peers in Banks
Below you can find Kotak Mahindra Bank benchmarking vs. other companies in Banks 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 |
|---|
| 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% |
| Andhra Bank ($ANDHRABANK) | - | 15.4% | 13.0% | 14.5% | 5.4% |
| |
|---|
| Median (28 companies) | 30.3% | 15.7% | 11.2% | 10.2% | 4.8% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | - | 22.9% | 7.1% | 26.1% | 29.2% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.2% | 1.2% | 1.2% | 1.3% | 1.4% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 1.4% | 1.4% | 2.6% | 1.4% | 1.2% |
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 ($YESBANK) | 9.8% | 8.4% | 8.4% | 8.7% | 9.0% |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| Dcb Bank ($DCBBANK) | - | 3.4% | 5.1% | 6.0% | 5.2% |
| |
|---|
| Median (28 companies) | 7.6% | 6.1% | 3.2% | 4.2% | 4.1% |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 6.8% | 6.5% | 7.1% | 8.5% | 7.3% |
