Union Bank Of India reports 0.16% almost no change in revenue in FY2016
13-05-2016 • About Union Bank Of India (
$UNIONBANK) • By InTwits
Union Bank Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Union Bank Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 1.7%
- CAPEX is quite volatile: ₹15,877m in FY2016, ₹3,461m in FY2015, ₹3,801m in FY2014, ₹3,732m in FY2013, ₹2,809m in FY2012
- It operates with medium-size leverage: Net Debt/EBITDA is 0.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Union Bank Of India's Revenue showed almost no change in FY2016. Revenue decline was accelerating on average at -6.2 pp per annum in FY2012-FY2016.
Net Income margin decreased slightly on 1.1 pp from 4.9% to 3.8% in FY2016. Net Income margin followed a declining trend at -1.0 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.4% in FY2016. Union Bank Of India's CAPEX/Revenue increased on 3.1 pp from 1.3% in FY2013 to 4.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Leverage (Debt)
Debt dropped on 13.0% while cash increased on 3.6%.
Union Bank Of India has no short term refinancing risk: cash is higher than short term debt (119.5%).
Financial and operational results
Union Bank Of India ($UNIONBANK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 234,694 | 280,383 | 324,439 | 361,594 | 361,026 | -0.2% |
| Net Income | 17,720 | 21,572 | 16,761 | 17,605 | 13,564 | -23.0% |
Balance Sheet
|
|---|
| Cash | 116,337 | 107,632 | 184,200 | 150,639 | 156,069 | 3.6% |
| Short Term Debt | 110,456 | 130,321 | 133,869 | 150,817 | 130,578 | -13.4% |
| Long Term Debt | 179,095 | 237,969 | 293,162 | 351,680 | 306,366 | -12.9% |
Cash flow
|
|---|
| Capex | 2,809 | 3,732 | 3,801 | 3,461 | 15,877 | 358.7% |
Ratios
|
|---|
| Revenue growth | 26.9% | 19.5% | 15.7% | 11.5% | -0.2% | |
|
|---|
| Net Income Margin | 7.6% | 7.7% | 5.2% | 4.9% | 3.8% | -1.1% |
| CAPEX, % of revenue | 1.2% | 1.3% | 1.2% | 1.0% | 4.4% | 3.4% |
|
|---|
| ROIC | | 5.9% | 3.3% | | | |
| ROE | 12.9% | 13.5% | 9.3% | 9.1% | 6.3% | -2.8% |
Peers in Banks
Below you can find Union Bank Of India 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 ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| |
|---|
| Median (28 companies) | 31.2% | 15.7% | 10.6% | 10.2% | 4.7% |
|---|
| Union Bank Of India ($UNIONBANK) | - | 19.5% | 15.7% | 11.5% | -0.2% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.2% | 1.2% | 1.3% | 1.3% | 1.3% |
|---|
| Union Bank Of India ($UNIONBANK) | 1.2% | 1.3% | 1.2% | 1.0% | 4.4% |
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 ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (28 companies) | 7.6% | 6.5% | 3.3% | 4.3% | 4.1% |
|---|
| Union Bank Of India ($UNIONBANK) | - | 5.9% | 3.3% | - | - |
