Bank Of India revenue decreased on 5.4%
24-05-2016 • About Bank Of India (
$BANKINDIA) • By InTwits
Bank Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bank Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: ₹5,393m in FY2016, ₹17,250m in FY2015, ₹6,347m in FY2014, ₹3,884m in FY2013, ₹6,397m in FY2012
- The company has unprofitable business model: ROIC is -5.1%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Bank Of India's Revenue decreased on 5.4%. Revenue decline was accelerating on average at -7.1 pp per annum in FY2012-FY2016.
Net Income margin dropped on 17.9 pp from 4.2% to -13.7% in FY2016. Net Income margin pursued a declining trend in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Bank Of India had CAPEX/Revenue of 1.2%. Bank Of India showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 2.1%.
Return on investment
The company operates at negative ROIC (-5.1%) and ROE (-18.8%). ROIC decreased on 6.4 pp from 1.3% to -5.1% in FY2016. ROE dropped on 25.2 pp from 6.4% to -18.8% in FY2016. ROIC followed a declining trend at -2.1 pp per annum in the last 5 years. ROE followed a declining trend in FY2012-FY2016.
Leverage (Debt)
Debt jumped on 18.6% while cash jumped on 24.4%.
Bank Of India has short term refinancing risk: cash is only 47.9% of short term debt.
Management team
Melwyn Oswald Rego is a Bank Of India's CEO. Melwyn Oswald Rego has spent 5 years with the company.
Financial and operational results
Bank Of India ($BANKINDIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 319,294 | 358,802 | 423,716 | 480,133 | 454,133 | -5.4% |
| Net Income | 27,249 | 28,199 | 29,868 | 20,129 | -62,043 | -408.2% |
Balance Sheet
|
|---|
| Cash | 151,397 | 221,251 | 192,879 | 274,984 | 342,137 | 24.4% |
| Short Term Debt | 21,614 | 23,534 | 541,078 | 631,411 | 713,790 | 13.0% |
| Long Term Debt | 686,681 | 743,365 | 484,275 | 400,987 | 511,033 | 27.4% |
Cash flow
|
|---|
| Capex | 6,397 | 3,884 | 6,347 | 17,250 | 5,393 | -68.7% |
Ratios
|
|---|
| Revenue growth | 30.3% | 12.4% | 18.1% | 13.3% | -5.4% | |
|
|---|
| Net Income Margin | 8.5% | 7.9% | 7.0% | 4.2% | -13.7% | -17.9% |
| CAPEX, % of revenue | 2.0% | 1.1% | 1.5% | 3.6% | 1.2% | -2.4% |
|
|---|
| ROIC | 4.6% | 3.0% | 2.9% | 1.3% | -5.1% | -6.4% |
| ROE | 14.0% | 12.3% | 10.8% | 6.4% | -18.8% | -25.2% |
Peers in Banks
Below you can find Bank Of India 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 ($LAKSHVILAS) | - | 16.7% | 11.7% | 14.2% | 14.6% |
| |
|---|
| Median (25 companies) | 45.9% | 16.7% | 10.6% | 10.2% | 4.7% |
|---|
| Bank Of India ($BANKINDIA) | - | 12.4% | 18.1% | 13.3% | -5.4% |
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% |
| Idbi Bank ($IDBIBANK) | 0.6% | 0.4% | 0.7% | 0.8% | 2.3% |
| |
|---|
| Median (25 companies) | 1.2% | 1.2% | 1.2% | 1.3% | 1.3% |
|---|
| Bank Of India ($BANKINDIA) | 2.0% | 1.1% | 1.5% | 3.6% | 1.2% |
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 ($LAKSHVILAS) | 6.5% | 7.5% | 0.7% | 6.1% | 5.8% |
| |
|---|
| Median (25 companies) | 7.6% | 6.5% | 3.4% | 4.5% | 4.0% |
|---|
| Bank Of India ($BANKINDIA) | 4.6% | 3.0% | 2.9% | 1.3% | -5.1% |
