Vindhya Telelinks reports 68.2% EBITDA growth in 2016 and 48.4% Revenue growth
19-05-2016 • About Vindhya Telelinks (
$VINDHYATEL) • By InTwits
Vindhya Telelinks reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Vindhya Telelinks is a fast growth stock: FY2016 revenue growth was 48.4%, 5 year revenue CAGR was 37.5% at FY2016 ROIC 20.8%
- EBITDA Margin is expanding: 17.0% in FY2016 vs. 15.0% in FY2015 vs. -0.4% in FY2012
- EBITDA Margin is quite volatile: 17.0% in FY2016, 15.0% in FY2015, 11.3% in FY2014, 6.8% in FY2013, -0.4% in FY2012
- Vindhya Telelinks has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 12.5%
- CAPEX is quite volatile: ₹274m in FY2016, ₹214m in FY2015, ₹230m in FY2014, ₹39m in FY2013, ₹15m in FY2012
- The company has highly profitable business model: ROIC is 20.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.6x while industry average is 1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vindhya Telelinks's Revenue jumped on 48.4%. Revenue growth was accelerating on average by 5.9 pp per annum in FY2012-FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.0 pp from 15.0% to 17.0% in FY2016. EBITDA Margin stuck to a growing trend at 4.3 pp per annum in FY2012-FY2016.
Net Income margin decreased slightly on 1.5 pp from 10.9% to 9.3% in FY2016. Net Income margin followed a growing trend at 2.2 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.7% in FY2016. CAPEX/Revenue increased slightly on 1.6 pp from 1.1% in FY2013 to 2.7% in FY2016. It's average CAPEX/Revenue for the last three years was 3.6%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 5.0% and was declining since that time.
Return on investment
The company operates at high and attractive ROIC (20.8%) and ROE (21.3%). ROIC increased on 5.8 pp from 15.0% to 20.8% in FY2016. ROE increased slightly on 0.99 pp from 20.3% to 21.3% in FY2016. ROIC stuck to a growing trend at 5.5 pp per annum in FY2012-FY2016. ROE followed a growing trend at 5.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.8x. Net Debt / EBITDA dropped on 1.1x from 2.7x to 1.6x in FY2016. Debt decreased on 2.8% while cash dropped on 14.9%.
Vindhya Telelinks has short term refinancing risk: cash is only 14.7% of short term debt.
Valuation and dividends
Vindhya Telelinks's trades at EV/EBITDA 5.7x and P/E 7.6x while industy averages are 17.8x and 21.9x. Vindhya Telelinks's EV/(EBITDA-CAPEX) is 6.8x with the industry average at 22.8x.
Financial and operational results
Vindhya Telelinks ($VINDHYATEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,602 | 3,535 | 4,588 | 6,848 | 10,161 | 48.4% |
| EBITDA | -10 | 240 | 518 | 1,024 | 1,723 | 68.2% |
| Net Income | 19 | 212 | 348 | 746 | 949 | 27.3% |
Balance Sheet
|
|---|
| Cash | 13 | 60 | 287 | 365 | 311 | -14.9% |
| Short Term Debt | 981 | 1,143 | 1,000 | 1,869 | 2,115 | 13.1% |
| Long Term Debt | 1 | 0 | 633 | 1,232 | 901 | -26.9% |
Cash flow
|
|---|
| Capex | 15 | 39 | 230 | 214 | 274 | 28.2% |
Ratios
|
|---|
| Revenue growth | 25.6% | 35.9% | 29.8% | 49.3% | 48.4% | |
| EBITDA growth | -115.2% | -2,470.3% | 116.0% | 97.6% | 68.2% | |
|
|---|
| EBITDA Margin | -0.4% | 6.8% | 11.3% | 15.0% | 17.0% | 2.0% |
| Net Income Margin | 0.7% | 6.0% | 7.6% | 10.9% | 9.3% | -1.5% |
| CAPEX, % of revenue | 0.6% | 1.1% | 5.0% | 3.1% | 2.7% | -0.4% |
|
|---|
| ROIC | -1.8% | 4.7% | 9.9% | 15.0% | 20.8% | 5.8% |
| ROE | 0.7% | 7.3% | 11.0% | 20.3% | 21.3% | 1.0% |
| Net Debt/EBITDA | | 4.5x | 2.6x | 2.7x | 1.6x | -1.1x |
Peers in Telecom Cables
Below you can find Vindhya Telelinks benchmarking vs. other companies in Telecom Cables 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 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 108.8% | -6.1% | -7.0% | 46.7% | - |
| Cmi ($CMI) | 23.5% | 21.6% | 18.7% | 29.1% | - |
| Himachal Futuristic Communications ($HFCL) | - | 132.4% | 233.0% | 26.4% | 2.3% |
| |
|---|
| Median (3 companies) | 66.2% | 21.6% | 18.7% | 29.1% | 2.3% |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 35.9% | 29.8% | 49.3% | 48.4% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 11.1% | 14.7% | 14.5% | 13.1% | - |
| Himachal Futuristic Communications ($HFCL) | 8.7% | 11.4% | 12.9% | 11.1% | 12.9% |
| Cmi ($CMI) | 9.0% | 8.6% | 8.4% | 10.6% | - |
| Tamilnadu Telecommunications ($TNTELE) | - | - | - | -48.2% | - |
| |
|---|
| Median (4 companies) | 9.0% | 11.4% | 12.9% | 10.8% | 12.9% |
|---|
| Vindhya Telelinks ($VINDHYATEL) | -0.4% | 6.8% | 11.3% | 15.0% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 0.6% | 1.4% | 7.8% | 7.9% | - |
| Cmi ($CMI) | 1.1% | 1.8% | 0.6% | 3.5% | - |
| Himachal Futuristic Communications ($HFCL) | 7.9% | 5.9% | 2.3% | 0.7% | 2.3% |
| |
|---|
| Median (3 companies) | 1.1% | 1.8% | 2.3% | 3.5% | 2.3% |
|---|
| Vindhya Telelinks ($VINDHYATEL) | 0.6% | 1.1% | 5.0% | 3.1% | 2.7% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Himachal Futuristic Communications ($HFCL) | - | 9.0% | 30.9% | 22.2% | 22.6% |
| Cmi ($CMI) | 16.7% | 16.1% | 16.6% | 22.2% | - |
| Aksh Optifibre ($AKSHOPTFBR) | 4.2% | 5.4% | 4.3% | 5.5% | - |
| Tamilnadu Telecommunications ($TNTELE) | - | - | - | - | - |
| |
|---|
| Median (4 companies) | 10.4% | 9.0% | 16.6% | 22.2% | 22.6% |
|---|
| Vindhya Telelinks ($VINDHYATEL) | -1.8% | 4.7% | 9.9% | 15.0% | 20.8% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 1.0x | 0.4x | 3.9x | 2.5x | - |
| Cmi ($CMI) | 4.1x | 4.1x | 4.3x | 2.3x | - |
| Himachal Futuristic Communications ($HFCL) | 17.8x | 5.3x | 1.1x | 1.0x | 0.9x |
| |
|---|
| Median (3 companies) | 4.1x | 4.1x | 3.9x | 2.3x | 0.9x |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 4.5x | 2.6x | 2.7x | 1.6x |
