Pnb Gilts Net Debt / EBITDA jumped on 6.2x from 8.8x to 15.0x in 2016 while Revenue dropped on 16.2%
16-05-2016 • About Pnb Gilts (
$PNBGILTS) • By InTwits
Pnb Gilts reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pnb Gilts has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is 1.0%
- It operates with high leverage: Net Debt/EBITDA is 15.0x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Pnb Gilts's Revenue dropped on 16.2%. Revenue decline was accelerating on average at -20.9 pp per annum in FY2012-FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 18.5% to 20.9% in FY2016. During the last 5 years EBITDA Margin topped in FY2014 at 96.4% and was declining since that time.
Net Income margin dropped on 11.5 pp from 21.5% to 10.0% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.082% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.064%.
Return on investment
The company operates at low ROIC (1.0%) and ROE (4.7%). ROE decreased on 8.0 pp from 12.7% to 4.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 15.0x and Debt / EBITDA is 15.0x. Net Debt / EBITDA surged on 6.2x from 8.8x to 15.0x in FY2016. Debt jumped on 27.5% while cash dropped on 94.6%.
Pnb Gilts has short term refinancing risk: cash is only 0.4% of short term debt.
Valuation and dividends
Pnb Gilts's trades at EV/EBITDA 16.3x and P/E 12.8x while industy averages are 17.8x and 21.9x.
Financial and operational results
Pnb Gilts ($PNBGILTS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,653 | 2,887 | 3,457 | 4,100 | 3,434 | -16.2% |
| EBITDA | 1,553 | 2,782 | 3,334 | 3,940 | 3,275 | -16.9% |
| Net Income | 211 | 612 | 614 | 883 | 345 | -60.9% |
Balance Sheet
|
|---|
| Cash | 1 | 4 | 3 | 3,917 | 212 | -94.6% |
| Short Term Debt | 22,077 | 31,217 | 37,675 | 38,579 | 49,207 | 27.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 3 | 1 | 3 | 331.0% |
Ratios
|
|---|
| Revenue growth | 60.2% | 74.6% | 19.8% | 18.6% | -16.2% | |
| EBITDA growth | 63.8% | 79.1% | 19.9% | 18.2% | -16.9% | |
|
|---|
| EBITDA Margin | 94.0% | 96.4% | 96.4% | 96.1% | 95.4% | -0.7% |
| Net Income Margin | 12.7% | 21.2% | 17.8% | 21.5% | 10.0% | -11.5% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.1% | 0.0% | 0.1% | 0.1% |
|
|---|
| ROIC | | | | | 1.0% | |
| ROE | 3.7% | 10.2% | 9.5% | 12.7% | 4.7% | -8.0% |
| Net Debt/EBITDA | 14.2x | 11.2x | 11.3x | 8.8x | 15.0x | 6.2x |
Peers in Finance (including NBFCs)
Below you can find Pnb Gilts benchmarking vs. other companies in Finance (including NBFCs) 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 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | -11.7% | -24.9% | -7.1% | 188.4% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | - | 0.4% | -0.9% | 64.7% | 39.8% |
| Sks Microfinance ($SKSMICRO) | - | -25.6% | 55.0% | 47.3% | 64.5% |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | - | 12.8% | 25.9% | 27.0% | -12.2% |
| Bajaj Finserv ($BAJAJFINSV) | 59.7% | 28.1% | 18.8% | 26.8% | - |
| |
|---|
| Median (23 companies) | 23.2% | 24.4% | 20.8% | 13.3% | 11.4% |
|---|
| Pnb Gilts ($PNBGILTS) | - | 74.6% | 19.8% | 18.6% | -16.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Microse India ($MICROSE) | - | - | - | 101.1% | - |
| Jsw Holdings ($JSWHL) | - | - | - | 93.8% | - |
| Rural Electrification Corporation ($RECLTD) | 97.2% | 97.3% | 96.7% | 93.3% | - |
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 96.1% | 95.4% | 92.3% | 92.7% | 91.4% |
| Saraswati Commercial (India) ($ZSARACOM) | - | - | - | 92.3% | - |
| |
|---|
| Median (48 companies) | 64.8% | 65.4% | 65.5% | 49.0% | 64.8% |
|---|
| Pnb Gilts ($PNBGILTS) | 94.0% | 96.4% | 96.4% | 96.1% | 95.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 1.0% | 1.3% | 4.5% | 7.3% | - |
| Clarus Finance & Securities ($CLARUS) | - | - | 6.9% | 5.8% | - |
| Srei Infrastructure Finance ($SREINFRA) | 30.2% | 8.5% | 12.3% | 5.4% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | 15.5% | 5.3% | 1.7% | 3.4% | 2.5% |
| Bengal & Assam Company ($BENGALASM) | 15.9% | 4.5% | 1.2% | 2.1% | - |
| |
|---|
| Median (21 companies) | 1.0% | 0.8% | 1.1% | 0.7% | 0.9% |
|---|
| Pnb Gilts ($PNBGILTS) | 0.0% | 0.0% | 0.1% | 0.0% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | - | 12.0% | 9.7% | 11.9% | 7.8% |
| Sks Microfinance ($SKSMICRO) | - | - | 4.1% | 6.6% | 7.6% |
| Shriram City Union Finance ($SHRIRAMCIT) | 6.1% | 5.8% | 5.8% | 5.7% | 4.6% |
| Rural Electrification Corporation ($RECLTD) | - | 4.7% | 5.2% | 4.7% | - |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 6.4% | 6.3% | 5.3% | 4.2% | 3.2% |
| |
|---|
| Median (52 companies) | 4.1% | 4.6% | 4.1% | 4.1% | 4.1% |
|---|
| Pnb Gilts ($PNBGILTS) | - | - | - | - | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fortune Financial Services (India) ($FORTUNEF) | 9.0x | - | 10.8x | 8.9x | - |
| Srei Infrastructure Finance ($SREINFRA) | 7.0x | 6.2x | 7.5x | 8.0x | - |
| Rural Electrification Corporation ($RECLTD) | 8.3x | 8.0x | 7.5x | 8.0x | - |
| Magma Fincorp ($MAGMA) | 7.7x | 8.5x | 7.0x | 7.7x | 7.5x |
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | 9.0x | 7.9x | 7.4x | 7.2x | 4.9x |
| |
|---|
| Median (44 companies) | 4.4x | 3.6x | 2.9x | 0.0x | 5.3x |
|---|
| Pnb Gilts ($PNBGILTS) | 14.2x | 11.2x | 11.3x | 8.8x | 15.0x |
