Siti Cable Network CAPEX jumped on 221% and Revenue jumped on 31.2%
25-05-2016 • About Siti Cable Network (
$SITICABLE) • By InTwits
Siti Cable Network reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Siti Cable Network is a fast growth stock: FY2016 revenue growth was 31.2%, 5 year revenue CAGR was 31.2% at FY2016 ROIC 8.9%
- EBITDA Margin is quite volatile: 27.1% in FY2016, 15.9% in FY2015, 19.9% in FY2014, 17.5% in FY2013, 1.6% in FY2012
- Siti Cable Network has high CAPEX intensity: 5 year average CAPEX/Revenue was 55.3%. At the same time it's a lot of higher than industry average of 23.8%.
- CAPEX is quite volatile: ₹9,452m in FY2016, ₹2,947m in FY2015, ₹4,853m in FY2014, ₹3,797m in FY2013, ₹364m in FY2012
- The company has business model with low profitability: ROIC is 8.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Siti Cable Network's Revenue jumped on 31.2%. During FY2012-FY2016 Revenue growth topped in FY2014 at 41.6% and was decelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.3 pp from 15.9% to 27.1% in FY2016.
Net Income margin jumped on 11.9 pp from -12.0% to -0.14% in FY2016. Net Income margin grew at 5.5 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 79.5%. The company's CAPEX/Revenue decreased slightly on 1.3 pp from 80.9% in FY2013 to 79.5% in FY2016. For the last three years the average CAPEX/Revenue was 61.7%. To fuel its fast growth Siti Cable Network made large investments to CAPEX (293% of EBITDA).
Return on investment
The company operates at low but positive ROIC (8.9%) and negative ROE (-0.4%). ROIC increased on 8.4 pp from 0.50% to 8.9% in FY2016. ROE surged on 73.2 pp from -73.6% to -0.41% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 3.1x. Net Debt / EBITDA dropped on 4.8x from 6.7x to 1.9x in FY2016. Debt dropped on 29.2% while cash dropped on 14.4%.
Siti Cable Network has no short term refinancing risk: cash is higher than short term debt (183.7%).
Management team
The company's CEO V D Wadhwa has spent 7 years with the company.
Financial and operational results
Siti Cable Network ($SITICABLE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,428 | 4,696 | 6,652 | 9,059 | 11,889 | 31.2% |
| EBITDA | 54 | 821 | 1,324 | 1,436 | 3,228 | 124.7% |
| Net Income | -913 | -641 | -941 | -1,091 | -17 | |
Balance Sheet
|
|---|
| Cash | 1,476 | 1,264 | 3,516 | 4,298 | 3,678 | -14.4% |
| Short Term Debt | 1,449 | 1,309 | 474 | 4,574 | 2,003 | -56.2% |
| Long Term Debt | 3,031 | 7,786 | 10,484 | 9,375 | 7,872 | -16.0% |
Cash flow
|
|---|
| Capex | 364 | 3,797 | 4,853 | 2,947 | 9,452 | 220.7% |
Ratios
|
|---|
| Revenue growth | 12.0% | 37.0% | 41.6% | 36.2% | 31.2% | |
| EBITDA growth | -52.3% | 1,430.9% | 61.2% | 8.5% | 124.7% | |
|
|---|
| EBITDA Margin | 1.6% | 17.5% | 19.9% | 15.9% | 27.1% | 11.3% |
| Net Income Margin | -26.6% | -13.6% | -14.1% | -12.0% | -0.1% | 11.9% |
| CAPEX, % of revenue | 10.6% | 80.9% | 73.0% | 32.5% | 79.5% | 47.0% |
|
|---|
| ROIC | -6.0% | 2.9% | 3.8% | 0.5% | 8.9% | 8.4% |
| ROE | | | | -73.6% | -0.4% | 73.2% |
| Net Debt/EBITDA | 56.0x | 9.5x | 5.6x | 6.7x | 1.9x | -4.8x |
Peers in Broadcasting & Cable TV
Below you can find Siti Cable Network 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 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | - | 21.7% | 18.6% | 11.5% | 19.9% |
| Dish Tv India ($DISHTV) | - | 10.7% | 15.8% | 7.1% | 13.8% |
| Entertainment Network (India) ($ENIL) | - | 9.2% | 13.2% | 14.0% | 12.2% |
| Tv18 Broadcast ($TV18BRDCST) | - | 21.4% | 16.4% | 17.8% | 10.8% |
| Zee Media Corporation ($ZEEMEDIA) | - | -1.7% | 11.3% | 62.6% | -0.3% |
| |
|---|
| Median (7 companies) | 32.7% | 9.2% | 18.6% | 11.5% | 10.8% |
|---|
| Siti Cable Network ($SITICABLE) | - | 37.0% | 41.6% | 36.2% | 31.2% |
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 ($RAJTV) | - | - | - | 29.6% | - |
| Dish Tv India ($DISHTV) | 25.5% | 27.3% | 26.4% | 28.1% | 34.5% |
| Zee Entertainment Enterprises ($ZEEL) | 24.4% | 25.9% | 27.6% | 25.7% | 25.8% |
| |
|---|
| Median (11 companies) | 18.6% | 21.0% | 18.2% | 24.1% | 17.4% |
|---|
| Siti Cable Network ($SITICABLE) | 1.6% | 17.5% | 19.9% | 15.9% | 27.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 11.6% | 65.8% | 14.2% | 7.1% | 65.0% |
| Dish Tv India ($DISHTV) | 33.5% | 32.2% | 11.9% | 26.3% | 29.7% |
| Zee Media Corporation ($ZEEMEDIA) | 3.4% | 5.9% | 31.6% | 0.0% | 11.4% |
| Balaji Telefilms ($BALAJITELE) | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% |
| Entertainment Network (India) ($ENIL) | 0.9% | 0.4% | 0.8% | 0.9% | 5.6% |
| |
|---|
| Median (7 companies) | 3.5% | 4.1% | 7.7% | 4.1% | 6.0% |
|---|
| Siti Cable Network ($SITICABLE) | 10.6% | 80.9% | 73.0% | 32.5% | 79.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.3% | 4.0% | 1.0% | 39.5% | 1.3% |
| Dish Tv India ($DISHTV) | -2.5% | -4.6% | 8.7% | 24.0% | 50.0% |
| 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 ($RAJTV) | 10.1% | 10.3% | 11.5% | 9.1% | - |
| |
|---|
| Median (12 companies) | 3.0% | 3.8% | 5.4% | 9.1% | 5.3% |
|---|
| Siti Cable Network ($SITICABLE) | -6.0% | 2.9% | 3.8% | 0.5% | 8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 0.2x | 0.3x | 3.0x | 10.1x | 2.8x |
| Den Networks ($DEN) | -0.5x | 2.4x | 1.7x | 6.0x | - |
| Dish Tv India ($DISHTV) | 2.1x | 2.6x | 2.0x | 1.4x | 0.8x |
| Tv18 Broadcast ($TV18BRDCST) | - | 2.4x | 0.9x | 1.3x | 1.4x |
| Hinduja Ventures ($HINDUJAVEN) | 0.7x | 5.9x | 5.6x | 1.1x | 11.0x |
| |
|---|
| Median (10 companies) | -0.4x | 1.5x | 1.6x | 1.0x | 1.4x |
|---|
| Siti Cable Network ($SITICABLE) | 56.0x | 9.5x | 5.6x | 6.7x | 1.9x |
