Oriental Bank Of Commerce revenue decreased slightly on 1.2%
11-05-2016 • About Oriental Bank Of Commerce (
$ORIENTBANK) • By InTwits
Oriental Bank Of Commerce reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Oriental Bank Of Commerce has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is 1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 1.2%. Revenue decline was accelerating on average at -7.2 pp per annum in FY2012-FY2016.
Net Income margin decreased slightly on 1.5 pp from 2.3% to 0.72% in FY2016. Net Income margin declined at -1.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Oriental Bank Of Commerce's CAPEX/Revenue was 0.97% in FY2016. CAPEX/Revenue increased slightly on 0.50 pp from 0.46% in FY2013 to 0.97% in FY2016. Average CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at low ROIC (1.2%) and ROE (1.1%). ROIC decreased on 2.6 pp from 3.7% to 1.2% in FY2016. ROE decreased on 2.6 pp from 3.7% to 1.1% in FY2016. ROIC stuck to a declining trend at -1.7 pp per annum in the last 5 years. ROE stuck to a declining trend at -2.5 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt jumped on 68.3% while cash decreased on 7.4%.
Oriental Bank Of Commerce has no short term refinancing risk: cash is higher than short term debt (480.4%).
Management team
Oriental Bank Of Commerce's CEO Animesh Chauhan has spent 5 years with the company.
Financial and operational results
Oriental Bank Of Commerce ($ORIENTBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 170,523 | 193,382 | 209,506 | 220,827 | 218,147 | -1.2% |
| Net Income | 11,416 | 13,280 | 11,394 | 4,971 | 1,561 | -68.6% |
Balance Sheet
|
|---|
| Cash | 84,617 | 81,719 | 99,812 | 101,884 | 94,329 | -7.4% |
| Short Term Debt | 1,341 | 1,279 | 15,554 | 10,899 | 19,635 | 80.1% |
| Long Term Debt | 56,129 | 78,554 | 40,756 | 24,574 | 40,069 | 63.1% |
Cash flow
|
|---|
| Capex | 1,526 | 894 | 1,677 | 2,952 | 2,105 | -28.7% |
Ratios
|
|---|
| Revenue growth | 30.7% | 13.4% | 8.3% | 5.4% | -1.2% | |
|
|---|
| Net Income Margin | 6.7% | 6.9% | 5.4% | 2.3% | 0.7% | -1.5% |
| CAPEX, % of revenue | 0.9% | 0.5% | 0.8% | 1.3% | 1.0% | -0.4% |
|
|---|
| ROIC | 7.6% | 7.4% | 6.7% | 3.7% | 1.2% | -2.6% |
| ROE | 9.9% | 10.7% | 8.7% | 3.7% | 1.1% | -2.6% |
Peers in Banks
Below we provide Oriental Bank Of Commerce 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 ($KOTAKBANK) | - | 22.9% | 7.1% | 26.1% | 29.2% |
| Dcb Bank ($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 ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| |
|---|
| Median (28 companies) | 30.3% | 16.7% | 11.2% | 10.8% | 5.4% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | - | 13.4% | 8.3% | 5.4% | -1.2% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.3% | 1.2% | 1.3% | 1.3% | 1.4% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | 0.9% | 0.5% | 0.8% | 1.3% | 1.0% |
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% | 7.3% |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (28 companies) | 7.2% | 6.1% | 3.2% | 4.5% | 4.7% |
|---|
| Oriental Bank Of Commerce ($ORIENTBANK) | 7.6% | 7.4% | 6.7% | 3.7% | 1.2% |
