A.K.Capital Services EBITDA Margin dropped on 53.8 pp from 53.8% to in 2016

21-05-2016 • About A.K.Capital Services ($AKCAPIT) • By InTwits

A.K.Capital Services reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

A.K.Capital Services's Revenue decreased on 3.8%.

Net Income margin increased slightly on 0.82 pp from 16.4% to 17.2% in FY2016.

Financial and operational results

A.K.Capital Services ($AKCAPIT) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	1,985	1,936	2,422	2,511	2,416	-3.8%
EBITDA	695	1,045	1,086	1,352
Net Income	381	460	352	411	416	1.0%
Balance Sheet
Cash	125	470	158	75
Short Term Debt	1,996	3,949	5,614	7,323
Long Term Debt	8	298	389	533
Cash flow
Capex	6	56	99
Ratios
Revenue growth	19.3%	-2.4%	25.1%	3.7%	-3.8%
EBITDA growth	-28.4%	50.4%	4.0%	24.4%

EBITDA Margin	35.0%	54.0%	44.8%	53.8%
Net Income Margin	19.2%	23.7%	14.5%	16.4%	17.2%	0.8%
CAPEX, % of revenue	0.3%	2.9%	4.1%

ROE	14.7%	15.5%	10.6%	11.2%
Net Debt/EBITDA	2.7x	3.6x	5.4x	5.8x

Peers in Finance (including NBFCs)

Below you can find A.K.Capital Services benchmarking vs. other companies in Finance (including NBFCs) 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
Fortune Financial Services (India) ($FORTUNEF)	-11.7%	-24.9%	-7.1%	188.4%	-
Motilal Oswal Financial Services ($MOTILALOFS)	-	0.4%	-0.9%	64.7%	39.8%
Sks Microfinance ($SKSMICRO)	-	-25.6%	55.0%	47.3%	64.5%
Bajaj Holdings & Investment ($BAJAJHLDNG)	-	12.8%	25.9%	27.0%	-12.2%
Bajaj Finserv ($BAJAJFINSV)	59.7%	28.1%	18.8%	26.8%	-
Median (23 companies)	23.9%	27.4%	19.8%	14.3%	10.9%
A.K.Capital Services ($AKCAPIT)	-	-2.4%	25.1%	3.7%	-3.8%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Microse India ($MICROSE)	-	-	-	101.1%	-
Pnb Gilts ($PNBGILTS)	94.0%	96.4%	96.4%	96.1%	95.4%
Jsw Holdings ($JSWHL)	-	-	-	93.8%	-
Rural Electrification Corporation ($RECLTD)	97.2%	97.3%	96.7%	93.3%	-
Bajaj Holdings & Investment ($BAJAJHLDNG)	96.1%	95.4%	92.3%	92.7%	91.4%
Median (48 companies)	70.0%	67.8%	66.4%	51.8%	66.8%
A.K.Capital Services ($AKCAPIT)	35.0%	54.0%	44.8%	53.8%	-

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Fortune Financial Services (India) ($FORTUNEF)	1.0%	1.3%	4.5%	7.3%	-
Clarus Finance & Securities ($CLARUS)	-	-	6.9%	5.8%	-
Srei Infrastructure Finance ($SREINFRA)	30.2%	8.5%	12.3%	5.4%	-
Motilal Oswal Financial Services ($MOTILALOFS)	15.5%	5.3%	1.7%	3.4%	2.5%
Bengal & Assam Company ($BENGALASM)	15.9%	4.5%	1.2%	2.1%	-
Median (22 companies)	1.0%	0.7%	0.9%	0.7%	0.8%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Motilal Oswal Financial Services ($MOTILALOFS)	-	12.0%	9.7%	11.9%	7.8%
Sks Microfinance ($SKSMICRO)	-	-	4.1%	6.6%	7.6%
Shriram City Union Finance ($SHRIRAMCIT)	6.1%	5.8%	5.8%	5.7%	4.6%
Rural Electrification Corporation ($RECLTD)	-	4.7%	5.2%	4.7%	-
Mahindra & Mahindra Financial Services ($M&MFIN)	6.4%	6.3%	5.3%	4.2%	3.2%
Median (52 companies)	4.1%	4.6%	4.1%	4.1%	3.7%
A.K.Capital Services ($AKCAPIT)	-	-	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Fortune Financial Services (India) ($FORTUNEF)	9.0x	-	10.8x	8.9x	-
Pnb Gilts ($PNBGILTS)	14.2x	11.2x	11.3x	8.8x	15.0x
Srei Infrastructure Finance ($SREINFRA)	7.0x	6.2x	7.5x	8.0x	-
Rural Electrification Corporation ($RECLTD)	8.3x	8.0x	7.5x	8.0x	-
Magma Fincorp ($MAGMA)	7.7x	8.5x	7.0x	7.7x	7.5x
Median (44 companies)	4.8x	3.6x	2.9x	0.0x	5.3x
A.K.Capital Services ($AKCAPIT)	2.7x	3.6x	5.4x	5.8x	-

A.K.Capital Services stock price chart

A.K.Capital Services financials

mln.	FY2010	FY2011	FY2012

Revenue	2,915	1,664	1,985
EBITDA	965.6	970.1	694.8
Net income	562.6	567.3	381.0
CAPEX	17.730	31.432	5.821
Debt	179.9	307.8	2,003
Cash	96.588	164.3	125.5

About A.K.Capital Services

A. K. Capital Services Limited, together with its subsidiaries, provides merchant banking services in India. It offers corporate debt raising services through private placement of bonds and debentures; initial public issue of bonds and debentures; project financing; working capital financing; and financial advisory services, as well as corporate bonds. The company also provides equity capital market services, including initial public offering (IPO), follow-on public offering, private placement of equity, mergers and acquisitions, convertibles, and qualified institutional placement services to raise equity capital. In addition, it offers structured products; venture capital; retirement trust solutions; and project finance services. Further, the company provides stock broking, IPO distribution, third party product distribution, and depository services; portfolio management services; and management consultancy and financial restructuring services. In addition, it is involved in lending to corporates; investment and trading in debt securities; and investment in shares. It serves central and state government undertakings, private and nationalized banks, financial institutions, and private sector corporate customers. The company was founded in 1993 and is based in Mumbai, India.