Uco Bank reports 346% Net Income decline in 2016 and 6.1% Revenue decline
13-05-2016 • About Uco Bank (
$UCOBANK) • By InTwits
Uco Bank reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Uco Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is -6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Uco Bank's Revenue decreased on 6.1%. Revenue decline was accelerating on average at -7.0 pp per annum in the last 5 years.
Net Income margin dropped on 19.3 pp from 5.3% to -14.0% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.74% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.93%. During the last 5 years CAPEX as a % of Revenue topped in FY2014 at 1.2% and was declining since that time.
Return on investment
The company operates at negative ROIC (-6.8%) and ROE (-22.3%). ROIC decreased on 9.1 pp from 2.3% to -6.8% in FY2016. ROE dropped on 31.9 pp from 9.6% to -22.3% in FY2016.
Leverage (Debt)
Debt dropped on 27.0% while cash decreased on 3.8%.
Uco Bank has short term refinancing risk: cash is only 24.8% of short term debt.
Management team
The company's CEO is Ravi Krishan Takkar. Ravi Krishan Takkar has 4 years tenure with the company.
Financial and operational results
Uco Bank ($UCOBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 155,970 | 177,033 | 194,794 | 213,468 | 200,422 | -6.1% |
| Net Income | 11,087 | 6,182 | 15,105 | 11,378 | -27,993 | -346.0% |
Balance Sheet
|
|---|
| Cash | 78,115 | 57,054 | 80,492 | 82,675 | 79,500 | -3.8% |
| Short Term Debt | 8,309 | 191,992 | 452,938 | 439,655 | 320,540 | -27.1% |
| Long Term Debt | 304,460 | 253,819 | 55,805 | 58,959 | 43,260 | -26.6% |
Cash flow
|
|---|
| Capex | 887 | 1,141 | 2,366 | 1,764 | 1,489 | -15.6% |
Ratios
|
|---|
| Revenue growth | 26.8% | 13.5% | 10.0% | 9.6% | -6.1% | |
|
|---|
| Net Income Margin | 7.1% | 3.5% | 7.8% | 5.3% | -14.0% | -19.3% |
| CAPEX, % of revenue | 0.6% | 0.6% | 1.2% | 0.8% | 0.7% | -0.1% |
|
|---|
| ROIC | 3.1% | 1.3% | 2.6% | 2.3% | -6.8% | -9.1% |
| ROE | 17.9% | 8.4% | 15.8% | 9.6% | -22.3% | -31.9% |
Peers in Banks
Below we provide Uco 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 ($KOTAKBANK) | - | 22.9% | 7.1% | 26.1% | 29.2% |
| Dcb Bank ($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 ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| |
|---|
| Median (28 companies) | 31.2% | 16.7% | 11.2% | 10.8% | 4.7% |
|---|
| Uco Bank ($UCOBANK) | - | 13.5% | 10.0% | 9.6% | -6.1% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.3% | 1.2% | 1.3% | 1.3% | 1.4% |
|---|
| Uco Bank ($UCOBANK) | 0.6% | 0.6% | 1.2% | 0.8% | 0.7% |
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 ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (28 companies) | 7.6% | 6.5% | 3.4% | 4.5% | 4.4% |
|---|
| Uco Bank ($UCOBANK) | 3.1% | 1.3% | 2.6% | 2.3% | -6.8% |
