Punjab National Bank reports 209% Net Income decline in 2016 while 5.3% Revenue growth
18-05-2016 • About Punjab National Bank (
$PNB) • By InTwits
Punjab National Bank reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Punjab National Bank is a growth stock: FY2016 revenue growth was 5.3%, 5 year revenue CAGR was 13.1% at FY2016 ROIC -2.9%
- Punjab National Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's in pair with industry average of 34.8%
- CAPEX is quite volatile: ₹39,891m in FY2016, ₹59,776m in FY2015, ₹94,236m in FY2014, ₹118,710m in FY2013, ₹125,119m in FY2012
- The company has unprofitable business model: ROIC is -2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 5.3%.
Net Income margin dropped on 12.6 pp from 6.2% to -6.4% in FY2016. Net Income margin stuck to a declining trend at -4.1 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.0%. Punjab National Bank showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.97%.
Return on investment
The company operates at negative ROIC (-2.9%) and ROE (-8.8%). ROIC decreased on 5.9 pp from 3.1% to -2.9% in FY2016. ROE dropped on 17.3 pp from 8.5% to -8.8% in FY2016. ROIC followed a declining trend at -2.6 pp per annum in FY2012-FY2016. ROE declined at -6.3 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt surged on 42.0% while cash increased on 8.4%.
Punjab National Bank has short term refinancing risk: cash is only 37.1% of short term debt.
Management team
The company's CEO Usha Ananthasubramanian has spent 5 years with the company.
Financial and operational results
Punjab National Bank ($PNB) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 417,349 | 473,801 | 496,684 | 548,844 | 577,805 | 5.3% |
| Net Income | 50,255 | 49,542 | 36,171 | 33,996 | -36,898 | -208.5% |
Balance Sheet
|
|---|
| Cash | 185,076 | 179,295 | 224,061 | 244,358 | 264,922 | 8.4% |
| Short Term Debt | 189,926 | 164,510 | 211,149 | 485,520 | 713,165 | 46.9% |
| Long Term Debt | 426,454 | 470,899 | 590,333 | 592,048 | 816,737 | 38.0% |
Cash flow
|
|---|
| Capex | 3,853 | 5,587 | 4,299 | 5,463 | 6,059 | 10.9% |
Ratios
|
|---|
| Revenue growth | 33.7% | 13.5% | 4.8% | 10.5% | 5.3% | |
|
|---|
| Net Income Margin | 12.0% | 10.5% | 7.3% | 6.2% | -6.4% | -12.6% |
| CAPEX, % of revenue | 0.9% | 1.2% | 0.9% | 1.0% | 1.0% | 0.1% |
|
|---|
| ROIC | 8.4% | 6.8% | 4.3% | 3.1% | -2.9% | -5.9% |
| ROE | 19.4% | 15.6% | 10.0% | 8.5% | -8.8% | -17.3% |
Peers in Banks
Below you can find Punjab National 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 ($SYNDIBANK) | - | 11.9% | 7.9% | 20.2% | 8.4% |
| Yes Bank ($YESBANK) | - | 33.7% | 21.6% | 17.7% | 18.9% |
| Axis Bank ($AXISBANK) | - | 24.5% | 13.1% | 15.6% | 14.9% |
| |
|---|
| Median (28 companies) | 30.3% | 16.7% | 11.2% | 10.4% | 4.7% |
|---|
| Punjab National Bank ($PNB) | - | 13.5% | 4.8% | 10.5% | 5.3% |
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 ($DCBBANK) | 9.0% | 7.0% | 1.6% | 1.9% | 2.2% |
| |
|---|
| Median (28 companies) | 1.3% | 1.2% | 1.3% | 1.3% | 1.3% |
|---|
| Punjab National Bank ($PNB) | 0.9% | 1.2% | 0.9% | 1.0% | 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 ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (28 companies) | 7.2% | 6.1% | 3.2% | 4.5% | 3.9% |
|---|
| Punjab National Bank ($PNB) | 8.4% | 6.8% | 4.3% | 3.1% | -2.9% |
