Intrasoft Technologies reports 596% Net Income growth in 2016 and 109% Revenue growth
27-05-2016 • About Intrasoft Technologies (
$ISFT) • By InTwits
Intrasoft Technologies reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Intrasoft Technologies is a fast growth stock: FY2016 revenue growth was 109%, 5 year revenue CAGR was 72.0% at FY2016 ROIC 6.4%
- EBITDA Margin is quite volatile: 1.3% in FY2016, 1.7% in FY2015, -1.3% in FY2014, 8.4% in FY2013, 22.0% in FY2012
- The company has potentially unprofitable business model: ROIC is 6.4%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 109%. Revenue growth was accelerating on average by 23.8 pp per annum in FY2012-FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.7 pp from 6.5% to 10.2% in FY2016.
Net Income margin increased on 4.1 pp from 1.7% to 5.8% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 1.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.50% in FY2016. The company showed big decline in CAPEX/Revenue of 23.4 pp from 23.9% in FY2013 to 0.50% in FY2016.
Return on investment
The company operates at good ROE (42.0%) while ROIC is low (6.4%).
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 3.9x. Net Debt / EBITDA surged on 3.6x from -1.4x to 2.1x in FY2016. Debt surged on 806% while cash jumped on 35.0%.
Intrasoft Technologies has no short term refinancing risk: cash is higher than short term debt (483.6%).
Valuation and dividends
Intrasoft Technologies's trades at EV/EBITDA 62.5x and P/E 13.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Intrasoft Technologies ($ISFT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 663 | 882 | 1,484 | 3,429 | 7,169 | 109.1% |
| EBITDA | 146 | 74 | -19 | 59 | 93 | 57.9% |
| Net Income | 110 | 31 | 21 | 60 | 415 | 596.3% |
Balance Sheet
|
|---|
| Cash | 53 | 36 | | 125 | 169 | 35.0% |
| Short Term Debt | 258 | 282 | | 19 | 35 | 82.2% |
| Long Term Debt | 1 | 0 | | 21 | 331 | 1,459.8% |
Cash flow
|
|---|
| Capex | 373 | 211 | | 10 | 36 | 248.2% |
Ratios
|
|---|
| Revenue growth | 39.1% | 33.1% | 68.2% | 131.1% | 109.1% | |
| EBITDA growth | -0.2% | -48.9% | -125.1% | -414.5% | 57.9% | |
|
|---|
| EBITDA Margin | 22.0% | 8.4% | -1.3% | 1.7% | 1.3% | -0.4% |
| Net Income Margin | 16.6% | 3.5% | 1.4% | 1.7% | 5.8% | 4.1% |
| CAPEX, % of revenue | 56.3% | 23.9% | | 0.3% | 0.5% | 0.2% |
|
|---|
| ROIC | 9.4% | 0.3% | | | 6.4% | |
| ROE | 10.6% | 3.0% | | | 42.0% | |
| Net Debt/EBITDA | 1.4x | 3.3x | | -1.4x | 2.1x | 3.6x |
Peers in Internet Software & Services
Below we provide Intrasoft Technologies benchmarking against other companies in Internet Software & Services 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 |
|---|
| Rolta India ($ROLTA) | - | 19.1% | - | - | 3.3% |
| |
|---|
| Median (1 company) | - | 19.1% | - | - | 3.3% |
|---|
| Intrasoft Technologies ($ISFT) | - | 33.1% | 68.2% | 131.1% | 109.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rolta India ($ROLTA) | 43.0% | 40.1% | - | 34.8% | 29.3% |
| United Interactive ($UNITEDINT) | - | - | - | 20.8% | - |
| Scanpoint Geomatics ($SCANPGEOM) | - | - | - | 4.2% | - |
| Aashee Infotech ($AASHEE) | - | - | - | 0.0% | - |
| Net 4 India ($NET4) | - | - | - | -99.7% | - |
| |
|---|
| Median (5 companies) | 43.0% | 40.1% | - | 4.2% | 29.3% |
|---|
| Intrasoft Technologies ($ISFT) | 22.0% | 8.4% | -1.3% | 1.7% | 1.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rolta India ($ROLTA) | 76.2% | 73.8% | - | 12.1% | 21.0% |
| |
|---|
| Median (1 company) | 76.2% | 73.8% | - | 12.1% | 21.0% |
|---|
| Intrasoft Technologies ($ISFT) | 56.3% | 23.9% | - | 0.3% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aashee Infotech ($AASHEE) | 0.7% | - | - | - | - |
| Scanpoint Geomatics ($SCANPGEOM) | 12.8% | - | - | - | - |
| United Interactive ($UNITEDINT) | 3.5% | - | - | - | - |
| Net 4 India ($NET4) | 24.3% | 16.4% | - | - | - |
| Rolta India ($ROLTA) | 9.0% | -12.4% | - | - | 7.5% |
| |
|---|
| Median (5 companies) | 9.0% | 2.0% | - | - | 7.5% |
|---|
| Intrasoft Technologies ($ISFT) | 9.4% | 0.3% | - | - | 6.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rolta India ($ROLTA) | 3.0x | 4.0x | - | 3.4x | 5.3x |
| Scanpoint Geomatics ($SCANPGEOM) | 0.4x | - | - | 0.0x | - |
| Aashee Infotech ($AASHEE) | -122.3x | 0.0x | 0.0x | 0.0x | 0.0x |
| United Interactive ($UNITEDINT) | -0.2x | - | - | 0.0x | - |
| |
|---|
| Median (4 companies) | 0.4x | 1.8x | 0.0x | 0.0x | 2.6x |
|---|
| Intrasoft Technologies ($ISFT) | 1.4x | 3.3x | - | -1.4x | 2.1x |
