Empower India reports 4.4% revenue decline in FY2016 and almost no change in EBITDA Margin of 0.28%
29-05-2016 • About Empower India (
$EMPOWER) • By InTwits
Empower India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Empower India is a company in decline: FY2016 revenue growth was -4.4%, 5 years revenue CAGR was -7.8%
- EBITDA Margin is relatively stable: 0.3% in FY2016 vs. 0.3% in FY2015 vs. 0.5% in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 4.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.6 pp from 8.6% to 14.1% in FY2016.
Net Income margin showed almost no change in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at -57.0% and was growing since that time.
Financial and operational results
Empower India ($EMPOWER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,479 | 1,285 | 866 | 1,072 | 1,025 | -4.4% |
| EBITDA | 8 | -13 | | 3 | 3 | 4.0% |
| Net Income | 2 | -69 | -494 | 2 | 2 | 24.5% |
Balance Sheet
|
|---|
| Cash | | 9 | | | | |
| Short Term Debt | | 0 | | | | |
| Long Term Debt | | 0 | | | | |
Cash flow
|
|---|
| Capex | | 0 | | | | |
Ratios
|
|---|
| Revenue growth | -3.7% | -13.2% | -32.6% | 23.9% | -4.4% | |
| EBITDA growth | -41.0% | -256.4% | | | 4.0% | |
|
|---|
| EBITDA Margin | 0.5% | -1.0% | | 0.3% | 0.3% | 0.0% |
| Net Income Margin | 0.1% | -5.3% | -57.0% | 0.1% | 0.2% | 0.0% |
|
|---|
Peers in IT Consulting & Software
Below you can find Empower India benchmarking vs. other companies in IT Consulting & Software 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 |
|---|
| Mindtree ($MINDTREE) | - | 23.2% | 28.8% | 17.0% | 31.8% |
| Ramco Systems ($RAMCOSYS) | - | 7.3% | 9.9% | 37.0% | 24.2% |
| Sqs India Bfsi ($SQSBFSI) | - | 32.9% | 20.4% | 10.1% | 23.4% |
| Infinite Computer Solutions (India) ($INFINITE) | - | 31.7% | 24.6% | 0.3% | 21.3% |
| Tech Mahindra ($TECHM) | - | 25.2% | 174.0% | 20.1% | 17.1% |
| |
|---|
| Median (20 companies) | 13.6% | 20.5% | 14.0% | 8.1% | 12.9% |
|---|
| Empower India ($EMPOWER) | - | -13.2% | -32.6% | 23.9% | -4.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Consultancy Services ($TCS) | - | - | 47.4% | 42.4% | 43.9% |
| Infosys ($INFY) | 41.3% | 98.1% | 35.9% | 38.3% | 37.4% |
| Mindtree ($MINDTREE) | 31.5% | 36.2% | - | 34.8% | 32.4% |
| Wipro ($WIPRO) | 29.2% | 30.4% | 32.0% | 31.6% | 30.4% |
| |
|---|
| Median (4 companies) | 32.7% | 36.2% | 35.9% | 36.6% | 34.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oracle Financial Services Software ($OFSS) | 35.3% | 35.2% | 37.4% | 39.7% | 41.1% |
| Infosys ($INFY) | 31.6% | 27.9% | 26.3% | 27.1% | 27.1% |
| Tata Consultancy Services ($TCS) | 29.5% | 28.6% | 30.7% | 26.1% | 28.2% |
| Wipro ($WIPRO) | 19.1% | 20.9% | 22.4% | 22.3% | 21.1% |
| Mindtree ($MINDTREE) | 15.1% | 19.8% | 20.6% | 20.3% | 17.7% |
| |
|---|
| Median (26 companies) | 15.1% | 17.2% | 18.3% | 13.2% | 14.5% |
|---|
| Empower India ($EMPOWER) | 0.5% | -1.0% | - | 0.3% | 0.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ramco Systems ($RAMCOSYS) | - | 22.1% | 15.3% | 12.4% | 10.3% |
| Niit Technologies ($NIITTECH) | 5.9% | 4.6% | 6.1% | 7.9% | 6.0% |
| Financial Technologies (India) ($FINANTECH) | 8.9% | 11.4% | - | 6.5% | 5.4% |
| Infosys ($INFY) | 4.9% | 5.2% | 5.5% | 4.2% | 4.4% |
| Cyient ($CYIENT) | 5.2% | 3.9% | 3.5% | 3.0% | 4.2% |
| |
|---|
| Median (18 companies) | 3.7% | 3.2% | 2.9% | 3.1% | 2.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Consultancy Services ($TCS) | 48.6% | 48.4% | 50.2% | 40.5% | 44.4% |
| Hexaware Technologies ($HEXAWARE) | 33.5% | 39.2% | 34.7% | 35.7% | - |
| Mindtree ($MINDTREE) | 24.9% | 34.6% | 36.2% | 32.0% | 28.9% |
| Sqs India Bfsi ($SQSBFSI) | 12.1% | 27.0% | 29.4% | 30.6% | 39.9% |
| Tech Mahindra ($TECHM) | 15.4% | 20.1% | 43.0% | 29.7% | 23.6% |
| |
|---|
| Median (31 companies) | 19.4% | 20.4% | 22.9% | 20.6% | 18.9% |
|---|
| Empower India ($EMPOWER) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Agc Networks ($AGCNET) | 0.9x | 10.1x | - | 4.6x | 22.8x |
| Onward Technologies ($ONWARDTEC) | 2.4x | 2.2x | 4.1x | 1.9x | 1.2x |
| Wipro ($WIPRO) | -0.3x | -0.3x | -0.6x | -0.8x | 0.2x |
| Asm Technologies ($ASMTEC) | 1.7x | 2.1x | - | 0.0x | 0.0x |
| Tera Software ($TERASOFT) | 1.7x | 1.5x | 0.0x | - | 0.0x |
| |
|---|
| Median (20 companies) | -0.0x | -0.2x | -0.3x | -0.3x | -0.3x |
|---|
| Empower India ($EMPOWER) | 0.0x | - | - | 0.0x | 0.0x |
