Vaibhav Global reports 61.4% Net Income decline in 2016 and 5.2 pp EBITDA Margin decline from 9.7% to 4.5%
19-05-2016 • About Vaibhav Global (
$VAIBHAVGBL) • By InTwits
Vaibhav Global reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vaibhav Global has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 17.0%.
- CAPEX is quite volatile: ₹491m in FY2016, ₹228m in FY2015, ₹169m in FY2014, ₹135m in FY2013, ₹75m in FY2012
- The company has business model with low profitability: ROIC is 7.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is -6.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vaibhav Global's Revenue decreased on 7.2%. During FY2012-FY2016 Revenue growth topped in FY2014 at 45.4% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 14.6% to 16.8% in FY2016.
Net Income margin decreased on 4.4 pp from 7.5% to 3.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 3.8%. The company's CAPEX/Revenue increased on 2.3 pp from 1.5% in FY2013 to 3.8% in FY2016. Average CAPEX/Revenue for the last three years was 2.3%. Vaibhav Global invested a big chunk of EBITDA (85.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (7.6%) and ROE (11.5%). ROIC dropped on 25.1 pp from 32.7% to 7.6% in FY2016. ROE dropped on 25.3 pp from 36.8% to 11.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.9x. Net Debt / EBITDA jumped on 0.9x from 0.1x to 1.0x in FY2016. Debt jumped on 47.0% while cash dropped on 14.9%. During the last 5 years Net Debt/EBITDA bottomed in FY2015 at 0.1x.
Vaibhav Global has short term refinancing risk: cash is only 51.3% of short term debt.
Management team
Vaibhav Global's CFO is Puru Aggarwal. Puru Aggarwal has 5 years tenure at the company.
Financial and operational results
Vaibhav Global ($VAIBHAVGBL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,465 | 8,929 | 12,983 | 13,755 | 12,758 | -7.2% |
| EBITDA | 758 | 642 | 1,432 | 1,340 | 575 | -57.0% |
| Net Income | 685 | -856 | 1,525 | 1,032 | 398 | -61.4% |
Balance Sheet
|
|---|
| Cash | 136 | 405 | 721 | 662 | 564 | -14.9% |
| Short Term Debt | 1,121 | 1,132 | 784 | 762 | 1,099 | 44.2% |
| Long Term Debt | 655 | 477 | 180 | 0 | 21 | |
Cash flow
|
|---|
| Capex | 75 | 135 | 169 | 228 | 491 | 115.6% |
Ratios
|
|---|
| Revenue growth | 23.0% | 38.1% | 45.4% | 6.0% | -7.2% | |
| EBITDA growth | 26.6% | -15.3% | 123.0% | -6.5% | -57.0% | |
|
|---|
| EBITDA Margin | 11.7% | 7.2% | 11.0% | 9.7% | 4.5% | -5.2% |
| Net Income Margin | 10.6% | -9.6% | 11.7% | 7.5% | 3.1% | -4.4% |
| CAPEX, % of revenue | 1.2% | 1.5% | 1.3% | 1.7% | 3.8% | 2.2% |
|
|---|
| ROIC | 15.7% | 14.9% | 41.7% | 32.7% | 7.6% | -25.1% |
| ROE | 35.6% | -51.1% | 87.6% | 36.8% | 11.5% | -25.3% |
| Net Debt/EBITDA | 2.2x | 1.9x | 0.2x | 0.1x | 1.0x | 0.9x |
Peers in Internet & Catalogue Retail
Below you can find Vaibhav Global benchmarking vs. other companies in Internet & Catalogue Retail 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Info Edge (India) ($NAUKRI) | 21.6% | 20.5% | 20.1% | 29.1% | - |
| |
|---|
| Median (1 company) | 21.6% | 20.5% | 20.1% | 29.1% | - |
|---|
| Vaibhav Global ($VAIBHAVGBL) | - | 38.1% | 45.4% | 6.0% | -7.2% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Info Edge (India) ($NAUKRI) | 30.2% | 25.6% | 17.0% | 2.4% | - |
| |
|---|
| Median (1 company) | 30.2% | 25.6% | 17.0% | 2.4% | - |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 11.7% | 7.2% | 11.0% | 9.7% | 4.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Info Edge (India) ($NAUKRI) | 2.3% | 11.3% | 3.3% | 60.3% | - |
| |
|---|
| Median (1 company) | 2.3% | 11.3% | 3.3% | 60.3% | - |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 1.2% | 1.5% | 1.3% | 1.7% | 3.8% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Info Edge (India) ($NAUKRI) | 22.8% | 19.0% | 10.5% | -2.2% | - |
| |
|---|
| Median (1 company) | 22.8% | 19.0% | 10.5% | -2.2% | - |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 15.7% | 14.9% | 41.7% | 32.7% | 7.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Info Edge (India) ($NAUKRI) | -0.3x | -0.4x | -0.7x | -13.4x | - |
| |
|---|
| Median (1 company) | -0.3x | -0.4x | -0.7x | -13.4x | - |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 2.2x | 1.9x | 0.2x | 0.1x | 1.0x |
