Master Trust reports 62.3% Net Income decline in 2016 and 9.5% Revenue decline

30-05-2016 • About Master Trust ($MASTERTR) • By InTwits

Master Trust reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Master Trust's Revenue decreased on 9.5%.

Net Income margin decreased on 4.8 pp from 8.2% to 3.4% in FY2016. Net Income margin followed a declining trend at -2.0 pp per annum in the last 5 years.

Financial and operational results

Master Trust ($MASTERTR) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	960	959	909	1,145	1,036	-9.5%
EBITDA	290	278	254	332
Net Income	117	100	85	94	36	-62.3%
Balance Sheet
Cash	1,184	825
Short Term Debt	664	322
Long Term Debt	322	381
Cash flow
Capex	34	10
Ratios
Revenue growth	10.2%	-0.0%	-5.3%	26.0%	-9.5%
EBITDA growth	13.0%	-4.3%	-8.6%	30.7%

EBITDA Margin	30.2%	28.9%	27.9%	29.0%
Net Income Margin	12.1%	10.4%	9.3%	8.2%	3.4%	-4.8%
CAPEX, % of revenue	3.6%	1.0%

ROIC	6.5%	4.4%
ROE	9.5%	6.8%
Net Debt/EBITDA	-0.7x	-0.4x	0.0x	0.0x

Peers in Finance (including NBFCs)

Below we provide Master Trust benchmarking against other companies in Finance (including NBFCs) 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 5	FY2012	FY2013	FY2014	FY2015	FY2016
Sks Microfinance ($SKSMICRO)	-	-25.6%	55.0%	47.3%	64.5%
Motilal Oswal Financial Services ($MOTILALOFS)	-	0.4%	-0.9%	64.7%	39.8%
K.Z.Leasing & Finance ($KZLFIN)	-	41.6%	-	-	26.5%
Bajaj Finserv ($BAJAJFINSV)	-	28.1%	18.8%	26.8%	23.9%
Muthoot Capital Services ($MUTHTFN)	-	59.3%	48.1%	20.5%	19.5%
Median (25 companies)	44.0%	27.4%	20.8%	13.3%	8.8%
Master Trust ($MASTERTR)	-	-0.0%	-5.3%	26.0%	-9.5%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Microse India ($MICROSE)	-	-	-	101.1%	-
Pnb Gilts ($PNBGILTS)	94.0%	96.4%	96.4%	96.1%	95.4%
Jsw Holdings ($JSWHL)	-	-	-	93.8%	-
Rural Electrification Corporation ($RECLTD)	97.2%	97.3%	96.7%	93.3%	92.0%
Bajaj Holdings & Investment ($BAJAJHLDNG)	96.1%	95.4%	92.3%	92.7%	91.4%
Median (51 companies)	70.0%	67.8%	66.4%	61.9%	60.5%
Master Trust ($MASTERTR)	30.2%	28.9%	27.9%	29.0%	-

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
IDFC Limited ($IDFC)	0.1%	0.1%	0.2%	0.5%	4.8%
Bengal & Assam Company ($BENGALASM)	15.9%	4.5%	1.2%	2.1%	4.1%
Motilal Oswal Financial Services ($MOTILALOFS)	15.5%	5.3%	1.7%	3.4%	2.5%
Cholamandalam Investment And Finance Company ($CHOLAFIN)	1.8%	1.4%	0.8%	0.8%	1.8%
Reliance Capital ($RELCAPITAL)	2.0%	0.7%	2.5%	1.0%	1.6%
Median (18 companies)	0.6%	0.7%	1.0%	0.7%	1.0%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Motilal Oswal Financial Services ($MOTILALOFS)	-	12.0%	9.7%	11.9%	7.8%
Sks Microfinance ($SKSMICRO)	-	-	4.1%	6.6%	7.6%
Nalwa Sons Investments ($NSIL)	-	-	-	-	6.4%
Shriram City Union Finance ($SHRIRAMCIT)	6.1%	5.8%	5.8%	5.7%	4.6%
Rural Electrification Corporation ($RECLTD)	-	4.7%	5.2%	4.7%	4.3%
Median (48 companies)	3.6%	4.7%	4.1%	4.1%	4.2%
Master Trust ($MASTERTR)	6.5%	4.4%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Fortune Financial Services (India) ($FORTUNEF)	9.0x	-	10.8x	8.9x	-0.5x
Pnb Gilts ($PNBGILTS)	14.2x	11.2x	11.3x	8.8x	15.0x
Srei Infrastructure Finance ($SREINFRA)	7.0x	6.2x	7.5x	8.0x	-
Rural Electrification Corporation ($RECLTD)	8.3x	8.0x	7.5x	8.0x	7.8x
Magma Fincorp ($MAGMA)	7.7x	8.5x	7.0x	7.7x	7.5x
Median (47 companies)	5.1x	3.6x	3.9x	0.0x	0.0x
Master Trust ($MASTERTR)	-0.7x	-0.4x	0.0x	0.0x	-

Master Trust stock price chart

Master Trust financials

mln.	FY2010	FY2011	FY2012

Revenue	1,277	871.0	959.6
EBITDA	223.2	256.9	290.2
Net income	133.1	125.5	116.6
CAPEX	47.610	28.431	34.250
Debt	263.5	872.8	986.0
Cash	1,012	1,381	1,184

About Master Trust

Master Trust Limited, a financial services company, provides investment and stock brokerage services in India. The company provides various retail products and services, including equity investments, insurance broking, commodity futures, depository services, and foreign exchange services. It also offers derivatives, IPOs, PMS, mutual funds, commodities, financial planning services, merchant banking services, loans against shares, NRI services, portfolio services, and house research services. In addition, the company provides corporate finance advisory services in the areas of mergers and acquisitions, private equity placements, IPOs, and high yield debt; institutional equity broking; and I-banking services. Master Trust Limited was founded in 1985 and is headquartered in Ludhiana, India.