D B Corp reports 175% CAPEX growth in 2016 and 0.60% Revenue growth
20-05-2016 • About D B Corp (
$DBCORP) • By InTwits
D B Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- D B Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's in pair with industry average of 6.5%
- CAPEX is quite volatile: ₹1,996m in FY2016, ₹726m in FY2015, ₹1,023m in FY2014, ₹567m in FY2013, ₹1,227m in FY2012
- The company has highly profitable business model: ROIC is 28.2%
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 slightly on 0.60%. During the last 5 years Revenue growth topped in FY2014 at 19.3% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 18.8 pp from 8.3% to -10.5% in FY2016.
SG&A as a % of Revenue increased on 3.6 pp from 1.3% to 4.9% in FY2016.
Net Income margin decreased slightly on 1.1 pp from 15.7% to 14.7% in FY2016.
Investments (CAPEX, working capital and M&A)
D B Corp's CAPEX/Revenue was 9.9% in FY2016. CAPEX/Revenue increased on 6.2 pp from 3.6% in FY2013 to 9.9% in FY2016. It's average CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at high and attractive ROIC (28.2%) and ROE (22.5%). ROIC decreased on 4.8 pp from 32.9% to 28.2% in FY2016. ROE decreased on 3.5 pp from 26.0% to 22.5% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 32.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.3x. Net Debt / EBITDA jumped on 0.2x from -0.1x to 0.1x in FY2016. Debt jumped on 47.7% while cash dropped on 48.2%. During the last 5 years Net Debt/EBITDA bottomed in FY2015 at -0.1x.
D B Corp has short term refinancing risk: cash is only 77.8% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 11.3x and P/E 19.9x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 18.2x with the industry average at 22.8x.
Financial and operational results
D B Corp ($DBCORP) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,713 | 15,594 | 18,598 | 20,096 | 20,217 | 0.6% |
| SG&A | | | 207 | 262 | 992 | 278.4% |
| EBITDA | 3,557 | 3,871 | 5,048 | 5,654 | 5,275 | -6.7% |
| Net Income | 2,021 | 2,181 | 3,066 | 3,163 | 2,966 | -6.2% |
Balance Sheet
|
|---|
| Cash | 1,363 | 1,190 | 1,132 | 1,780 | 922 | -48.2% |
| Short Term Debt | 1,104 | 750 | 537 | 477 | 1,184 | 148.0% |
| Long Term Debt | 1,029 | 878 | 727 | 505 | 268 | -47.0% |
Cash flow
|
|---|
| Capex | 1,227 | 567 | 1,023 | 726 | 1,996 | 175.1% |
Ratios
|
|---|
| Revenue growth | 12.4% | 13.7% | 19.3% | 8.1% | 0.6% | |
| EBITDA growth | -12.4% | 8.8% | 30.4% | 12.0% | -6.7% | |
|
|---|
| EBITDA Margin | 25.9% | 24.8% | 27.1% | 28.1% | 26.1% | -2.0% |
| SG&A, % of revenue | | | 1.1% | 1.3% | 4.9% | 3.6% |
| Net Income Margin | 14.7% | 14.0% | 16.5% | 15.7% | 14.7% | -1.1% |
| CAPEX, % of revenue | 8.9% | 3.6% | 5.5% | 3.6% | 9.9% | 6.3% |
|
|---|
| ROIC | 25.7% | 25.8% | 32.7% | 32.9% | 28.2% | -4.8% |
| ROE | 23.0% | 22.3% | 28.2% | 26.0% | 22.5% | -3.5% |
| Net Debt/EBITDA | 0.2x | 0.1x | 0.0x | -0.1x | 0.1x | 0.2x |
Peers in Publishing
Below you can find D B Corp benchmarking vs. other companies in Publishing 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 |
|---|
| Just Dial ($JUSTDIAL) | - | 39.8% | 27.2% | 27.9% | 17.1% |
| Hindustan Media Ventures ($HMVL) | 15.6% | 6.6% | 14.7% | 12.2% | - |
| Ht Media ($HTMEDIA) | 15.0% | 2.3% | 7.4% | 4.0% | - |
| Jagran Prakashan ($JAGRAN) | 11.0% | 12.3% | 11.9% | 3.9% | - |
| |
|---|
| Median (4 companies) | 15.0% | 9.4% | 13.3% | 8.1% | 17.1% |
|---|
| D B Corp ($DBCORP) | - | 13.7% | 19.3% | 8.1% | 0.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 26.0% | 27.8% | 39.5% | 36.6% | 36.8% |
| Next Mediaworks ($NEXTMEDIA) | - | - | - | 31.4% | - |
| Sambhaav Media ($SAMBHAAV) | - | - | - | 30.7% | - |
| Jagran Prakashan ($JAGRAN) | 23.4% | 19.5% | 23.2% | 25.8% | - |
| Hindustan Media Ventures ($HMVL) | 16.3% | 17.7% | 20.8% | 21.0% | - |
| |
|---|
| Median (7 companies) | 20.7% | 19.0% | 22.0% | 25.8% | 36.8% |
|---|
| D B Corp ($DBCORP) | 25.9% | 24.8% | 27.1% | 28.1% | 26.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 8.9% | 10.0% | 4.5% | 11.5% | 13.7% |
| Ht Media ($HTMEDIA) | 3.8% | 6.4% | 6.9% | 4.1% | - |
| Jagran Prakashan ($JAGRAN) | 11.2% | 6.6% | 5.3% | 3.1% | - |
| Hindustan Media Ventures ($HMVL) | 7.7% | 1.2% | 5.8% | 1.9% | - |
| |
|---|
| Median (4 companies) | 8.3% | 6.5% | 5.6% | 3.6% | 13.7% |
|---|
| D B Corp ($DBCORP) | 8.9% | 3.6% | 5.5% | 3.6% | 9.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 58.7% | 32.4% | 34.2% | 31.7% | 33.3% |
| Jagran Prakashan ($JAGRAN) | 19.7% | 11.3% | 19.7% | 20.8% | - |
| Hindustan Media Ventures ($HMVL) | 17.7% | 18.3% | 22.3% | 19.6% | - |
| Ht Media ($HTMEDIA) | 14.7% | 14.2% | 10.9% | 8.6% | - |
| Arnav Corporation ($ARNAVCORP) | - | - | - | - | - |
| |
|---|
| Median (8 companies) | 14.7% | 11.3% | 19.7% | 20.2% | 33.3% |
|---|
| D B Corp ($DBCORP) | 25.7% | 25.8% | 32.7% | 32.9% | 28.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.6x | 1.1x | 0.6x | - |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.0x | 0.3x | - |
| Jagran Prakashan ($JAGRAN) | 2.0x | 1.5x | 1.2x | 0.1x | - |
| Cyber Media (India) ($CYBERMEDIA) | 4.1x | 6.8x | - | 0.0x | - |
| Next Mediaworks ($NEXTMEDIA) | - | 1.9x | 1.0x | 0.0x | 0.0x |
| |
|---|
| Median (7 companies) | 0.5x | 1.5x | 0.5x | 0.0x | -0.1x |
|---|
| D B Corp ($DBCORP) | 0.2x | 0.1x | 0.0x | -0.1x | 0.1x |
