Aksh Optifibre EBITDA surged on 43.9% and Revenue jumped on 25.3%
28-05-2016 • About Aksh Optifibre (
$AKSHOPTFBR) • By InTwits
Aksh Optifibre reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aksh Optifibre is a fast growth stock: FY2016 revenue growth was 25.3%, 5 year revenue CAGR was 27.4% at FY2016 ROIC 8.4%
- Aksh Optifibre has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: ₹97m in FY2016, ₹278m in FY2015, ₹187m in FY2014, ₹36m in FY2013, ₹17m in FY2012
- The company has business model with low profitability: ROIC is 8.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.2x 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
Aksh Optifibre's Revenue jumped on 25.3%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 13.1% to 15.0% in FY2016.
Net Income margin decreased slightly on 1.4 pp from 7.2% to 5.8% in FY2016. During the last 5 years Net Income margin topped in FY2013 at 10.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Aksh Optifibre's CAPEX/Revenue was 2.2% in FY2016. CAPEX/Revenue increased slightly on 0.83 pp from 1.4% in FY2013 to 2.2% in FY2016. It's average CAPEX/Revenue for the last three years was 6.0%. During the last 5 years CAPEX as a % of Revenue topped in FY2015 at 7.9%.
Return on investment
The company operates at low ROIC (8.4%) and ROE (5.9%). ROIC increased on 2.9 pp from 5.5% to 8.4% in FY2016. ROE decreased slightly on 0.57 pp from 6.5% to 5.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped on 1.3x from 2.5x to 1.2x in FY2016. Debt dropped on 31.8% while cash dropped on 24.5%.
Aksh Optifibre has short term refinancing risk: cash is only 7.2% of short term debt.
Financial and operational results
Aksh Optifibre ($AKSHOPTFBR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,735 | 2,568 | 2,387 | 3,502 | 4,389 | 25.3% |
| EBITDA | 303 | 377 | 345 | 458 | 659 | 43.9% |
| Net Income | 196 | 258 | 217 | 253 | 256 | 1.1% |
Balance Sheet
|
|---|
| Cash | 8 | 20 | 8 | 43 | 33 | -24.5% |
| Short Term Debt | 325 | 172 | 478 | 470 | 457 | -2.8% |
| Long Term Debt | 0 | 0 | 876 | 737 | 367 | -50.2% |
Cash flow
|
|---|
| Capex | 17 | 36 | 187 | 278 | 97 | -65.1% |
Ratios
|
|---|
| Revenue growth | 108.8% | -6.1% | -7.0% | 46.7% | 25.3% | |
| EBITDA growth | -436.6% | 24.3% | -8.4% | 32.7% | 43.9% | |
|
|---|
| EBITDA Margin | 11.1% | 14.7% | 14.5% | 13.1% | 15.0% | 1.9% |
| Net Income Margin | 7.2% | 10.0% | 9.1% | 7.2% | 5.8% | -1.4% |
| CAPEX, % of revenue | 0.6% | 1.4% | 7.8% | 7.9% | 2.2% | -5.7% |
|
|---|
| ROIC | 4.2% | 5.4% | 4.3% | 5.5% | 8.4% | 2.9% |
| ROE | 5.8% | 7.1% | 5.7% | 6.5% | 5.9% | -0.6% |
| Net Debt/EBITDA | 1.0x | 0.4x | 3.9x | 2.5x | 1.2x | -1.3x |
Peers in Telecom Cables
Below we provide Aksh Optifibre benchmarking against other companies in Telecom Cables 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 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 35.9% | 29.8% | 49.3% | 48.4% |
| Cmi ($CMI) | 23.5% | 21.6% | 18.7% | 29.1% | - |
| Himachal Futuristic Communications ($HFCL) | - | 132.4% | 233.0% | 26.4% | 2.3% |
| |
|---|
| Median (3 companies) | 23.5% | 35.9% | 29.8% | 29.1% | 25.3% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | - | -6.1% | -7.0% | 46.7% | 25.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | -0.4% | 6.8% | 11.3% | 15.0% | 17.0% |
| Himachal Futuristic Communications ($HFCL) | 8.7% | 11.4% | 12.9% | 11.1% | 12.9% |
| Cmi ($CMI) | 9.0% | 8.6% | 8.4% | 10.6% | - |
| Tamilnadu Telecommunications ($TNTELE) | - | - | - | -48.2% | - |
| |
|---|
| Median (4 companies) | 8.7% | 8.6% | 11.3% | 10.8% | 14.9% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 11.1% | 14.7% | 14.5% | 13.1% | 15.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cmi ($CMI) | 1.1% | 1.8% | 0.6% | 3.5% | - |
| Vindhya Telelinks ($VINDHYATEL) | 0.6% | 1.1% | 5.0% | 3.1% | 2.7% |
| Himachal Futuristic Communications ($HFCL) | 7.9% | 5.9% | 2.3% | 0.7% | 2.3% |
| |
|---|
| Median (3 companies) | 1.1% | 1.8% | 2.3% | 3.1% | 2.5% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 0.6% | 1.4% | 7.8% | 7.9% | 2.2% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Himachal Futuristic Communications ($HFCL) | - | 9.0% | 30.9% | 22.2% | 22.6% |
| Cmi ($CMI) | 16.7% | 16.1% | 16.6% | 22.2% | - |
| Vindhya Telelinks ($VINDHYATEL) | -1.8% | 4.7% | 9.9% | 15.0% | 20.8% |
| Tamilnadu Telecommunications ($TNTELE) | - | - | - | - | - |
| |
|---|
| Median (4 companies) | 7.5% | 9.0% | 16.6% | 22.2% | 21.7% |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 4.2% | 5.4% | 4.3% | 5.5% | 8.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 4.5x | 2.6x | 2.7x | 1.6x |
| Cmi ($CMI) | 4.1x | 4.1x | 4.3x | 2.3x | - |
| Himachal Futuristic Communications ($HFCL) | 17.8x | 5.3x | 1.1x | 1.0x | 0.9x |
| |
|---|
| Median (3 companies) | 11.0x | 4.5x | 2.6x | 2.3x | 1.2x |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 1.0x | 0.4x | 3.9x | 2.5x | 1.2x |
