Geojit Bnp Paribas Financial Services reports 51.4% Net Income decline in 2016 and 12.1 pp EBITDA Margin decline from 39.9% to 27.7%
26-05-2016 • About Geojit Bnp Paribas Financial Services (
$GEOJITBNPP) • By InTwits
Geojit Bnp Paribas Financial Services reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Geojit Bnp Paribas Financial Services has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: ₹496,620m in FY2016, ₹633,640m in FY2015, ₹600,870m in FY2014, ₹307,260m in FY2013, ₹163,810m in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Geojit Bnp Paribas Financial Services's Revenue dropped on 16.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 12.1 pp from 39.9% to 27.7% in FY2016. During the last 5 years EBITDA Margin topped in FY2015 at 39.9%.
Net Income margin decreased on 9.9 pp from 23.7% to 13.8% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Geojit Bnp Paribas Financial Services had CAPEX/Revenue of 8.3%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 5.6%.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash surged on 84.6%.
Valuation and dividends
The company's trades at EV/EBITDA 9.0x and P/E 23.6x while industy averages are 17.8x and 21.9x. Geojit Bnp Paribas Financial Services's EV/(EBITDA-CAPEX) is 12.8x with the industry average at 22.8x.
Financial and operational results
Geojit Bnp Paribas Financial Services ($GEOJITBNPP) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,571 | 2,622 | 2,290 | 3,260 | 2,720 | -16.6% |
| EBITDA | 660 | 837 | 763 | 1,300 | 755 | -42.0% |
| Net Income | 194 | 818 | -732 | 774 | 376 | -51.4% |
Balance Sheet
|
|---|
| Cash | 1,145 | 821 | 640 | 1,132 | 2,090 | 84.6% |
| Short Term Debt | 158 | 765 | 150 | 45 | 0 | -100.0% |
| Long Term Debt | 250 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 148 | 204 | 85 | 156 | 225 | 44.1% |
Ratios
|
|---|
| Revenue growth | -8.6% | 2.0% | -12.6% | 42.3% | -16.6% | |
| EBITDA growth | -4.6% | 26.9% | -8.9% | 70.5% | -42.0% | |
|
|---|
| EBITDA Margin | 25.7% | 31.9% | 33.3% | 39.9% | 27.7% | -12.1% |
| Net Income Margin | 7.6% | 31.2% | -32.0% | 23.7% | 13.8% | -9.9% |
| CAPEX, % of revenue | 5.7% | 7.8% | 3.7% | 4.8% | 8.3% | 3.5% |
|
|---|
| ROE | 4.7% | 18.6% | -16.2% | 17.1% | 7.8% | -9.3% |
| Net Debt/EBITDA | -1.1x | -0.1x | -0.6x | -0.8x | -2.8x | -1.9x |
Peers in Other Financial Services
Below you can find Geojit Bnp Paribas Financial Services benchmarking vs. other companies in Other Financial Services 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 |
|---|
| Capital First ($CAPF) | - | 9.9% | 31.5% | 35.8% | 31.0% |
| Jm Financial ($JMFINANCIL) | - | 19.3% | -3.4% | 39.4% | 17.6% |
| Credit Analysis And Research ($CARERATING) | - | 13.1% | 16.0% | 10.6% | 7.2% |
| Aditya Birla Money ($BIRLAMONEY) | - | -13.3% | -10.6% | 49.0% | 6.8% |
| Icra ($ICRA) | - | 21.2% | 12.2% | 13.7% | 5.9% |
| |
|---|
| Median (10 companies) | 17.1% | 13.1% | 12.2% | 21.3% | 5.9% |
|---|
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | - | 2.0% | -12.6% | 42.3% | -16.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Twentyfirst Century Management Services ($21STCENMGM) | - | - | - | 91.9% | - |
| Tcfc Finance ($TCFCFINQ) | - | - | - | 88.4% | - |
| Frontline Securities ($FRONTSEC) | - | - | - | 87.0% | - |
| Shardul Securities ($SHARDUL) | - | - | - | 84.6% | - |
| Axis Capital Markets (India) ($AXISCAP) | - | - | - | 84.2% | - |
| |
|---|
| Median (33 companies) | 43.2% | 57.6% | 53.8% | 33.7% | 61.4% |
|---|
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | 25.7% | 31.9% | 33.3% | 39.9% | 27.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jm Financial ($JMFINANCIL) | 0.9% | 0.9% | 11.2% | 16.9% | 1.2% |
| Credit Analysis And Research ($CARERATING) | 4.6% | 2.8% | 1.4% | 4.4% | 1.0% |
| Multi Commodity Exchange Of India ($MCX) | 3.8% | 8.8% | 1.7% | 3.8% | 8.8% |
| Crisil ($CRISIL) | 4.4% | 1.6% | 1.7% | 1.9% | - |
| Icra ($ICRA) | 2.0% | 2.1% | 13.2% | 1.5% | 3.1% |
| |
|---|
| Median (10 companies) | 3.8% | 1.6% | 1.7% | 1.3% | 2.3% |
|---|
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | 5.7% | 7.8% | 3.7% | 4.8% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crisil ($CRISIL) | 62.5% | 53.7% | 46.4% | 43.1% | - |
| Credit Analysis And Research ($CARERATING) | - | 32.4% | 31.4% | 36.1% | 44.1% |
| Icra ($ICRA) | 20.7% | 17.0% | 20.9% | 21.1% | 20.5% |
| Multi Commodity Exchange Of India ($MCX) | 35.4% | 27.2% | 9.9% | 4.8% | 9.7% |
| Religare Enterprises ($RELIGARE) | 2.0% | 3.4% | 2.7% | 4.1% | - |
| |
|---|
| Median (35 companies) | 5.4% | 17.0% | 15.4% | 21.1% | 15.1% |
|---|
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital First ($CAPF) | 7.5x | 9.2x | 9.1x | 7.7x | 9.4x |
| Religare Enterprises ($RELIGARE) | 9.2x | 6.1x | 7.0x | 7.2x | - |
| Jm Financial ($JMFINANCIL) | 6.4x | 6.4x | 4.8x | 4.8x | 5.8x |
| Intec Capital ($INTECCAP) | 5.1x | 4.9x | 4.6x | 4.5x | 0.0x |
| Indiabulls Securities ($IBSEC) | 1.6x | 2.5x | 1.9x | 4.0x | 4.0x |
| |
|---|
| Median (31 companies) | -0.1x | 0.3x | 0.0x | 0.0x | 0.0x |
|---|
| Geojit Bnp Paribas Financial Services ($GEOJITBNPP) | -1.1x | -0.1x | -0.6x | -0.8x | -2.8x |
