Oscar Investments reports 214% Net Income decline in 2016 while 27.6% Revenue growth
27-05-2016 • About Oscar Investments (
$OSCAR) • By InTwits
Oscar Investments reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Oscar Investments is a growth stock: FY2016 revenue growth was 27.6%, 5 year revenue CAGR was 11.5% at FY2016 ROIC
- Oscar Investments has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Oscar Investments's Revenue jumped on 27.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 23.5% to 24.9% in FY2016.
Net Income margin dropped on 45.8 pp from 24.2% to -21.7% in FY2016. Net Income margin stuck to a declining trend at -20.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Oscar Investments had CAPEX/Revenue of 0.0025%. The company showed small CAPEX/Revenue decline of 1.2 pp from 1.2% in FY2013 to 0.0025% in FY2016. It's average CAPEX/Revenue for the last three years was 0.35%. During the last 5 years CAPEX as a % of Revenue topped in FY2013 at 1.2% and was declining since that time.
Leverage (Debt)
Debt level is 7.4x Net Debt / EBITDA and 8.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 7.7x to 7.4x in FY2016. Debt dropped on 14.2% while cash jumped on 4,798%.
Oscar Investments has short term refinancing risk: cash is only 11.5% of short term debt.
Financial and operational results
Oscar Investments ($OSCAR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,931 | 782 | 1,209 | 1,161 | 1,482 | 27.6% |
| EBITDA | 2,821 | 636 | 1,047 | 1,022 | 801 | -21.7% |
| Net Income | 1,965 | 423 | 287 | 281 | -321 | -214.2% |
Balance Sheet
|
|---|
| Cash | 8 | 213 | 24 | 16 | 773 | 4,798.3% |
| Short Term Debt | 361 | 3,403 | 2,972 | 2,848 | 6,733 | 136.4% |
| Long Term Debt | 600 | 0 | 0 | 5,000 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 1 | 9 | 12 | 1 | 0 | -95.8% |
Ratios
|
|---|
| Revenue growth | 240.9% | -73.3% | 54.7% | -4.0% | 27.6% | |
| EBITDA growth | 278.2% | -77.5% | 64.7% | -2.4% | -21.7% | |
|
|---|
| EBITDA Margin | 96.3% | 81.3% | 86.6% | 88.0% | 54.0% | -34.0% |
| Net Income Margin | 67.0% | 54.1% | 23.7% | 24.2% | -21.7% | -45.8% |
| CAPEX, % of revenue | 0.0% | 1.2% | 1.0% | 0.1% | 0.0% | -0.1% |
|
|---|
| ROE | 12.6% | 2.5% | 1.7% | 1.6% | -1.8% | -3.5% |
| Net Debt/EBITDA | 0.3x | 5.0x | 2.8x | 7.7x | 7.4x | -0.2x |
Peers in Investment Companies
Below you can find Oscar Investments benchmarking vs. other companies in Investment Companies 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Breweries (Holdings) ($UBHOLDINGS) | -13.5% | -87.2% | -27.1% | 1.2% | - |
| |
|---|
| Median (1 company) | -13.5% | -87.2% | -27.1% | 1.2% | - |
|---|
| Oscar Investments ($OSCAR) | - | -73.3% | 54.7% | -4.0% | 27.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Investment ($BFINVEST) | - | - | - | 95.0% | - |
| Summit Securities ($SUMMITSEC) | - | - | - | 94.1% | - |
| Industrial & Prudential Investments Co ($INDPRUD) | - | - | - | 90.4% | - |
| Tamboli Capital ($TAMBOLI) | - | - | - | 20.2% | - |
| United Breweries (Holdings) ($UBHOLDINGS) | -20.6% | 26.1% | -662.4% | -303.1% | - |
| |
|---|
| Median (5 companies) | -20.6% | 26.1% | -662.4% | 90.4% | - |
|---|
| Oscar Investments ($OSCAR) | 96.3% | 81.3% | 86.6% | 88.0% | 54.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Investment ($BFINVEST) | - | - | - | 5.3% | - |
| Summit Securities ($SUMMITSEC) | - | - | - | 0.1% | - |
| |
|---|
| Median (2 companies) | 0.4% | 2.8% | 4.0% | 2.7% | - |
|---|
| Oscar Investments ($OSCAR) | 0.0% | 1.2% | 1.0% | 0.1% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Investment ($BFINVEST) | - | - | - | - | - |
| Geefcee Finance ($GEEFC) | - | - | - | - | - |
| Industrial & Prudential Investments Co ($INDPRUD) | - | - | - | - | - |
| Oswal Agro Mills ($OSWALAGRO) | - | - | - | - | - |
| Summit Securities ($SUMMITSEC) | - | - | - | - | 10.2% |
| |
|---|
| Median (7 companies) | -20.6% | 2.8% | -68.6% | - | 10.2% |
|---|
| Oscar Investments ($OSCAR) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tamboli Capital ($TAMBOLI) | 1.3x | - | 0.0x | 0.0x | 0.0x |
| Bf Investment ($BFINVEST) | -0.0x | -0.0x | -0.0x | -0.0x | -0.5x |
| Summit Securities ($SUMMITSEC) | -0.7x | -0.4x | -0.2x | -0.2x | -0.7x |
| |
|---|
| Median (3 companies) | -0.1x | -0.4x | -0.0x | -0.0x | -0.5x |
|---|
| Oscar Investments ($OSCAR) | 0.3x | 5.0x | 2.8x | 7.7x | 7.4x |
