Idbi Bank reports 2.4% revenue decline in FY2016

20-05-2016 • About Idbi Bank ($IDBIBANK) • By InTwits

Idbi Bank reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: Idbi Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%..

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 decreased on 2.4%. Revenue decline was accelerating on average at -5.3 pp per annum in the last 5 years.

Net Income margin dropped on 14.3 pp from 2.9% to -11.4% in FY2016. Net Income margin followed a declining trend in the last 5 years.

Investments (CAPEX, working capital and M&A)

The company's CAPEX/Revenue was 2.3% in FY2016. The company showed small growth in CAPEX/Revenue of 1.8 pp from 0.43% in FY2013 to 2.3% in FY2016. For the last three years the average CAPEX/Revenue was 1.3%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2013 at 0.43% and was growing since that time.

Leverage (Debt)

Debt surged on 12.5% while cash increased on 5.1%.

Idbi Bank has short term refinancing risk: cash is only 34.4% of short term debt.

Financial and operational results

Idbi Bank ($IDBIBANK) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	255,898	284,101	297,223	323,535	315,763	-2.4%
Net Income	20,025	18,889	11,517	9,418	-35,908	-481.3%
Balance Sheet
Cash	150,943	105,487	127,146	131,568	138,274	5.1%
Short Term Debt	241,511	9,105	298,405	357,720	402,040	12.4%
Long Term Debt	534,776	658,089	601,463	618,325	695,739	12.5%
Cash flow
Capex	1,596	1,227	2,225	2,716	7,149	163.2%
Ratios
Revenue growth	22.8%	11.0%	4.6%	8.9%	-2.4%

Net Income Margin	7.8%	6.6%	3.9%	2.9%	-11.4%	-14.3%
CAPEX, % of revenue	0.6%	0.4%	0.7%	0.8%	2.3%	1.4%

ROIC		2.8%	1.1%
ROE		9.3%	5.1%	3.9%	-13.7%	-17.6%

Peers in Banks

Below you can find Idbi 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%
Yes Bank ($YESBANK)	-	33.7%	21.6%	17.7%	18.9%
Axis Bank ($AXISBANK)	-	24.5%	13.1%	15.6%	14.9%
Lakshmi Vilas Bank ($LAKSHVILAS)	-	16.7%	11.7%	14.2%	14.6%
Median (23 companies)	45.9%	16.7%	11.2%	10.8%	4.8%
Idbi Bank ($IDBIBANK)	-	11.0%	4.6%	8.9%	-2.4%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Union Bank Of India ($UNIONBANK)	1.2%	1.3%	1.2%	1.0%	4.4%
Indian Bank ($INDIANB)	1.2%	1.3%	1.0%	1.4%	4.3%
Axis Bank ($AXISBANK)	1.4%	1.4%	1.6%	1.2%	2.9%
Lakshmi Vilas Bank ($LAKSHVILAS)	2.1%	1.4%	1.6%	2.4%	2.4%
Dcb Bank ($DCBBANK)	9.0%	7.0%	1.6%	1.9%	2.2%
Median (23 companies)	1.3%	1.2%	1.3%	1.3%	1.2%
Idbi Bank ($IDBIBANK)	0.6%	0.4%	0.7%	0.8%	2.3%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Karnataka Bank ($KTKBANK)	6.8%	10.2%	7.7%	10.4%	10.1%
Yes Bank ($YESBANK)	9.8%	8.4%	8.4%	8.7%	9.0%
Axis Bank ($AXISBANK)	9.6%	8.9%	9.1%	8.8%	7.6%
Kotak Mahindra Bank ($KOTAKBANK)	6.8%	6.5%	7.1%	8.5%	7.3%
Lakshmi Vilas Bank ($LAKSHVILAS)	6.5%	7.5%	0.7%	6.1%	5.8%
Median (23 companies)	7.6%	6.5%	3.4%	4.3%	3.9%
Idbi Bank ($IDBIBANK)	-	2.8%	1.1%	-	-

Idbi Bank stock price chart

Idbi Bank financials

mln.	FY2010	FY2011	FY2012

Revenue	22,858	208,382	255,898
EBITDA	0.000	0.000	0.000
Net income	-145,107.000	15,635	20,025
CAPEX	0.000	0.000	1,596
Debt	477,095	0.000	776,287
Cash	139,035	0.000	150,943

About Idbi Bank

IDBI Bank Limited provides banking and financial solutions to retail and corporate clients primarily in India. It offers savings and current accounts, corporate payroll accounts, and retail term and recurring deposits; and loans, such as home, auto, education, and personal loans, as well as loan against properties and securities. The company also provides fund based assistance, including term loans; short term loans; working capital; packing credit to exporters; receivable buyout with recourse; channel financing for dealers of corporates; scheme for financing automated teller machines (ATM)/cash dispense vendors; bill discounting; technology upgrading fund scheme for textile and jute industries; and lending to NBFC/housing finance companies and commercial real estate sector. In addition, it offers non-fund based assistance, such as bank guarantee/performance guarantee, letters of credit, and buyers credit; cash management services comprising collection and payment products, debt service products, virtual account system, and host to host connectivity services; treasury services, including call money/notice money/term money, commercial papers, certificate of deposits, government securities, treasury bills, corporate bonds, equities, remittances, currency forward contracts, long-term foreign exchange, currency options, swaps, and forward rate agreements; and trade finance services. Further, the company provides finance to micro, small, and medium enterprises; agriculture finance; environmental services; products and services for non-resident Indians; investment advisory services; demat accounts; debit and prepaid cards; merchant establishments