South Indian Bank reports 8.5% Net Income growth in 2016 and 4.8% Revenue growth
11-05-2016 • About South Indian Bank (
$SOUTHBANK) • By InTwits
South Indian Bank reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- South Indian Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.5%
- CAPEX is quite volatile: ₹25,268m in FY2016, ₹18,010m in FY2015, ₹12,460m in FY2014, ₹38,367m in FY2013, ₹45,600m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.8%. Revenue decline was accelerating on average at -9.8 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2016. Net Income margin declined at -1.5 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.3%. South Indian Bank's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.3%. CAPEX as a % of Revenue was relatively stable in the last 5 years.
Return on investment
The company operates at low ROIC (5.4%) and ROE (9.0%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. ROE stuck to a declining trend at -3.3 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt increased on 7.9% while cash increased slightly on 1.4%.
South Indian Bank has short term refinancing risk: cash is only 51.9% of short term debt.
Management team
South Indian Bank's CEO is V G Mathew. V G Mathew has 6 years tenure with the company.
Financial and operational results
South Indian Bank ($SOUTHBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 38,297 | 47,687 | 54,112 | 57,700 | 60,449 | 4.8% |
| Net Income | 4,017 | 5,023 | 5,075 | 3,072 | 3,333 | 8.5% |
Balance Sheet
|
|---|
| Cash | 15,718 | 16,967 | 22,008 | 24,416 | 24,761 | 1.4% |
| Short Term Debt | 1,174 | 1,202 | 25,455 | 45,514 | 47,741 | 4.9% |
| Long Term Debt | 5,882 | 12,846 | 27,308 | 6,296 | 8,168 | 29.7% |
Cash flow
|
|---|
| Capex | 593 | 661 | 700 | 712 | 762 | 7.1% |
Ratios
|
|---|
| Revenue growth | 44.9% | 24.5% | 13.5% | 6.6% | 4.8% | |
|
|---|
| Net Income Margin | 10.5% | 10.5% | 9.4% | 5.3% | 5.5% | 0.2% |
| CAPEX, % of revenue | 1.5% | 1.4% | 1.3% | 1.2% | 1.3% | 0.0% |
|
|---|
| ROIC | | | | 5.2% | 5.4% | 0.2% |
| ROE | 20.0% | 19.4% | 15.9% | 8.8% | 9.0% | 0.1% |
Peers in Banks
Below you can find South Indian 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 |
|---|
| 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 ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| |
|---|
| Median (28 companies) | 30.3% | 15.7% | 10.6% | 10.8% | 5.4% |
|---|
| South Indian Bank ($SOUTHBANK) | - | 24.5% | 13.5% | 6.6% | 4.8% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.2% | 1.2% | 1.2% | 1.3% | 1.4% |
|---|
| South Indian Bank ($SOUTHBANK) | 1.5% | 1.4% | 1.3% | 1.2% | 1.3% |
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 ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (28 companies) | 7.6% | 6.3% | 3.3% | 4.2% | 4.1% |
|---|
| South Indian Bank ($SOUTHBANK) | - | - | - | 5.2% | 5.4% |
