Info Edge (India) EBITDA dropped on 1,968% and EBITDA Margin dropped on 37.2 pp from 2.4% to -34.8%
25-05-2016 • About Info Edge (India) (
$NAUKRI) • By InTwits
Info Edge (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Info Edge (India) is a fast growth stock: FY2016 revenue growth was 28.1%, 5 year revenue CAGR was 23.8% at FY2016 ROIC -21.7%
- EBITDA Margin is declining: -34.8% in FY2016 vs. 2.4% in FY2015 vs. 30.2% in FY2012
- EBITDA Margin is quite volatile: -34.8% in FY2016, 2.4% in FY2015, 17.0% in FY2014, 25.6% in FY2013, 30.2% in FY2012
- Info Edge (India) has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: ₹868m in FY2016, ₹4,419m in FY2015, ₹189m in FY2014, ₹533m in FY2013, ₹89m in FY2012
- The company has unprofitable business model: ROIC is -21.7%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 1.0x
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 jumped on 28.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.7 pp from -17.6% to 1.2% in FY2016. EBITDA Margin declined at -15.3 pp per annum in the last 5 years.
Net Income margin dropped on 30.1 pp from 3.3% to -26.8% in FY2016. Net Income margin followed a declining trend at -12.3 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Info Edge (India)'s CAPEX/Revenue was 9.3% in FY2016. CAPEX/Revenue decreased on 2.0 pp from 11.3% in FY2013 to 9.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 24.3%.
Return on investment
The company operates at negative ROIC (-21.7%) and ROE (-19.5%). ROIC dropped on 19.5 pp from -2.2% to -21.7% in FY2016. ROE dropped on 21.9 pp from 2.3% to -19.5% in FY2016. ROIC followed a declining trend at -11.0 pp per annum in FY2012-FY2016. ROE stuck to a declining trend at -9.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is . Debt jumped on 16.5% while cash jumped on 58.3%.
Info Edge (India) has no short term refinancing risk: cash is higher than short term debt (85,897.7%).
Management team
Info Edge (India)'s CEO Hitesh Oberoi has spent 10 years with the company. Info Edge (India)'s CFO Chintan Arvind Thakkar has spent 6 years with the company.
Financial and operational results
Info Edge (India) ($NAUKRI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,919 | 4,723 | 5,672 | 7,325 | 9,382 | 28.1% |
| EBITDA | 1,183 | 1,210 | 966 | 175 | -3,263 | -1,968.2% |
| Net Income | 1,033 | 916 | 897 | 241 | -2,518 | -1,146.5% |
Balance Sheet
|
|---|
| Cash | 353 | 515 | 705 | 2,355 | 3,728 | 58.3% |
| Short Term Debt | 4 | 5 | 6 | 4 | 4 | 4.3% |
| Long Term Debt | 3 | 5 | 4 | 3 | 4 | 34.4% |
Cash flow
|
|---|
| Capex | 89 | 533 | 189 | 4,419 | 868 | -80.4% |
Ratios
|
|---|
| Revenue growth | 21.6% | 20.5% | 20.1% | 29.1% | 28.1% | |
| EBITDA growth | 41.7% | 2.3% | -20.1% | -81.9% | -1,968.2% | |
|
|---|
| EBITDA Margin | 30.2% | 25.6% | 17.0% | 2.4% | -34.8% | -37.2% |
| Net Income Margin | 26.4% | 19.4% | 15.8% | 3.3% | -26.8% | -30.1% |
| CAPEX, % of revenue | 2.3% | 11.3% | 3.3% | 60.3% | 9.3% | -51.1% |
|
|---|
| ROIC | 22.8% | 19.0% | 10.5% | -2.2% | -21.7% | -19.5% |
| ROE | 21.5% | 16.1% | 14.0% | 2.3% | -19.5% | -21.9% |
| Net Debt/EBITDA | -0.3x | -0.4x | -0.7x | -13.4x | |
Peers in Internet & Catalogue Retail
Below we provide Info Edge (India) benchmarking against other companies in Internet & Catalogue Retail industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vaibhav Global ($VAIBHAVGBL) | - | 38.1% | 45.4% | 6.0% | -7.2% |
| |
|---|
| Median (1 company) | - | 38.1% | 45.4% | 6.0% | -7.2% |
|---|
| Info Edge (India) ($NAUKRI) | - | 20.5% | 20.1% | 29.1% | 28.1% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 11.7% | 7.2% | 11.0% | 9.7% | 4.5% |
| |
|---|
| Median (1 company) | 11.7% | 7.2% | 11.0% | 9.7% | 4.5% |
|---|
| Info Edge (India) ($NAUKRI) | 30.2% | 25.6% | 17.0% | 2.4% | -34.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 1.2% | 1.5% | 1.3% | 1.7% | 3.8% |
| |
|---|
| Median (1 company) | 1.2% | 1.5% | 1.3% | 1.7% | 3.8% |
|---|
| Info Edge (India) ($NAUKRI) | 2.3% | 11.3% | 3.3% | 60.3% | 9.3% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 15.7% | 14.9% | 41.7% | 32.7% | 7.6% |
| |
|---|
| Median (1 company) | 15.7% | 14.9% | 41.7% | 32.7% | 7.6% |
|---|
| Info Edge (India) ($NAUKRI) | 22.8% | 19.0% | 10.5% | -2.2% | -21.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 2.2x | 1.9x | 0.2x | 0.1x | 1.0x |
| |
|---|
| Median (1 company) | 2.2x | 1.9x | 0.2x | 0.1x | 1.0x |
|---|
| Info Edge (India) ($NAUKRI) | -0.3x | -0.4x | -0.7x | -13.4x | - |
