Dish Tv India reports 21,952% Net Income growth in 2016 and 6.3 pp EBITDA Margin growth from 28.1% to 34.5%
23-05-2016 • About Dish Tv India (
$DISHTV) • By InTwits
Dish Tv India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dish Tv India is a fast growth stock: FY2016 revenue growth was 13.8%, 5 year revenue CAGR was 16.3% at FY2016 ROIC 50.0%
- Dish Tv India has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.7%. At the same time it's a lot of higher than industry average of 18.0%.
- CAPEX is quite volatile: ₹134m in FY2016, ₹44m in FY2015, ₹2,284m in FY2014, ₹930m in FY2013, ₹3,745m in FY2012
- The company has highly profitable business model: ROIC is 50.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dish Tv India's Revenue jumped on 13.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 8.2% to 10.6% in FY2016.
SG&A as a % of Revenue increased slightly on 0.57 pp from 2.0% to 2.6% in FY2016.
Net Income margin jumped on 22.5 pp from 0.12% to 22.6% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 29.7% in FY2016. Dish Tv India's CAPEX/Revenue decreased on 2.5 pp from 32.2% in FY2013 to 29.7% in FY2016. Average CAPEX/Revenue for the last three years was 22.6%. The company invested a big chunk of EBITDA (86.1%) to CAPEX to secure its growth. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 11.9% and was growing since that time.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.4x to 0.8x in FY2016. Debt dropped on 17.0% while cash dropped on 20.9%. During the last 5 years Net Debt/EBITDA topped in FY2013 at 2.6x and was declining since that time.
Dish Tv India has no short term refinancing risk: cash is higher than short term debt (436.3%).
Valuation and dividends
The company's trades at EV/EBITDA 9.8x and P/E 13.6x while industy averages are 17.8x and 21.9x. Dish Tv India's EV/(EBITDA-CAPEX) is 70.2x with the industry average at 22.8x.
Financial and operational results
Dish Tv India ($DISHTV) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,579 | 21,668 | 25,090 | 26,880 | 30,599 | 13.8% |
| SG&A | | | | 544 | 793 | 45.9% |
| EBITDA | 4,993 | 5,908 | 6,620 | 7,566 | 10,550 | 39.4% |
| Net Income | -1,331 | -660 | -1,576 | 31 | 6,924 | 21,951.6% |
Balance Sheet
|
|---|
| Cash | 1,692 | 1,143 | 581 | 4,286 | 3,392 | -20.9% |
| Short Term Debt | 1,950 | 7,870 | 6,304 | 14,839 | 777 | -94.8% |
| Long Term Debt | 10,194 | 8,460 | 7,791 | 0 | 11,535 | |
Cash flow
|
|---|
| Capex | 6,553 | 6,983 | 2,989 | 7,064 | 9,084 | 28.6% |
Ratios
|
|---|
| Revenue growth | 36.3% | 10.7% | 15.8% | 7.1% | 13.8% | |
| EBITDA growth | 95.6% | 18.3% | 12.1% | 14.3% | 39.4% | |
|
|---|
| EBITDA Margin | 25.5% | 27.3% | 26.4% | 28.1% | 34.5% | 6.3% |
| SG&A, % of revenue | | | | 2.0% | 2.6% | 0.6% |
| Net Income Margin | -6.8% | -3.0% | -6.3% | 0.1% | 22.6% | 22.5% |
| CAPEX, % of revenue | 33.5% | 32.2% | 11.9% | 26.3% | 29.7% | 3.4% |
|
|---|
| ROIC | -2.5% | -4.6% | 8.7% | 24.0% | 50.0% | 25.9% |
| Net Debt/EBITDA | 2.1x | 2.6x | 2.0x | 1.4x | 0.8x | -0.5x |
Peers in Broadcasting & Cable TV
Below you can find Dish Tv India benchmarking vs. other companies in Broadcasting & Cable TV 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 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | - | 31.8% | 29.6% | 81.8% | -52.6% |
| Zee Media Corporation ($ZEEMEDIA) | 10.6% | -1.7% | 11.3% | 62.6% | - |
| Siti Cable Network ($SITICABLE) | 12.0% | 37.0% | 41.6% | 36.2% | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 21.4% | 16.4% | 17.8% | 10.8% |
| Entertainment Network (India) ($ENIL) | - | 9.2% | 13.2% | 14.0% | 12.2% |
| |
|---|
| Median (9 companies) | 11.3% | 9.2% | 22.9% | 14.0% | 10.8% |
|---|
| Dish Tv India ($DISHTV) | - | 10.7% | 15.8% | 7.1% | 13.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 27.7% | 21.0% | 18.2% | 54.7% | 17.1% |
| Entertainment Network (India) ($ENIL) | 32.1% | 30.8% | 32.4% | 33.3% | 29.1% |
| Raj Television Network ($RAJTV) | - | - | - | 29.6% | - |
| Zee Entertainment Enterprises ($ZEEL) | 24.4% | 25.9% | 27.6% | 25.7% | 25.8% |
| Sea Tv Network ($SEATV) | - | - | - | 24.1% | - |
| |
|---|
| Median (11 companies) | 7.3% | 17.5% | 18.2% | 15.9% | 17.1% |
|---|
| Dish Tv India ($DISHTV) | 25.5% | 27.3% | 26.4% | 28.1% | 34.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siti Cable Network ($SITICABLE) | 10.6% | 80.9% | 73.0% | 32.5% | - |
| Den Networks ($DEN) | 12.6% | 60.4% | 53.2% | 28.5% | - |
| Hinduja Ventures ($HINDUJAVEN) | 11.6% | 65.8% | 14.2% | 7.1% | 65.0% |
| Balaji Telefilms ($BALAJITELE) | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% |
| Tv18 Broadcast ($TV18BRDCST) | 3.5% | 2.3% | 3.1% | 4.1% | 4.3% |
| |
|---|
| Median (9 companies) | 3.5% | 4.1% | 8.8% | 4.1% | 5.6% |
|---|
| Dish Tv India ($DISHTV) | 33.5% | 32.2% | 11.9% | 26.3% | 29.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.3% | 4.0% | 1.0% | 39.5% | 1.3% |
| Zee Entertainment Enterprises ($ZEEL) | 21.1% | 24.2% | 25.5% | 22.1% | 23.6% |
| Entertainment Network (India) ($ENIL) | 15.2% | 14.8% | 16.7% | 17.9% | 12.5% |
| Raj Television Network ($RAJTV) | 10.1% | 10.3% | 11.5% | 9.1% | - |
| Tv18 Broadcast ($TV18BRDCST) | -6.4% | 2.7% | 4.0% | 5.3% | 5.2% |
| |
|---|
| Median (12 companies) | 3.0% | 3.8% | 4.6% | 5.3% | 5.2% |
|---|
| Dish Tv India ($DISHTV) | -2.5% | -4.6% | 8.7% | 24.0% | 50.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 0.2x | 0.3x | 3.0x | 10.1x | - |
| Siti Cable Network ($SITICABLE) | 56.0x | 9.5x | 5.6x | 6.7x | - |
| Den Networks ($DEN) | -0.5x | 2.4x | 1.7x | 6.0x | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 2.4x | 0.9x | 1.3x | 1.4x |
| Hinduja Ventures ($HINDUJAVEN) | 0.7x | 5.9x | 5.6x | 1.1x | 11.0x |
| |
|---|
| Median (10 companies) | -0.4x | 1.5x | 1.6x | 1.0x | 1.4x |
|---|
| Dish Tv India ($DISHTV) | 2.1x | 2.6x | 2.0x | 1.4x | 0.8x |
