Softsol India revenue dropped on 11.0%
30-05-2016 • About Softsol India (
$SOFTSOL) • By InTwits
Softsol India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Softsol India is a company in decline: FY2016 revenue growth was -11.0%, 5 years revenue CAGR was -4.6%
- EBITDA Margin is relatively stable: in FY2016 vs. -4.4% in FY2015 vs. -8.9% in FY2012
- Softsol India motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0% while average EBITDA Margin was -4.3% for the sames years
- It operates with medium-size leverage: Net Debt/EBITDA is 3.9x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 11.0%.
Net Income margin decreased slightly on 0.78 pp from 2.7% to 1.9% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 5.0% and was declining since that time.
Financial and operational results
Softsol India ($SOFTSOL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 663.2 | 724.7 | 576.7 | 657.7 | 585.5 | -11.0% |
| EBITDA | -58.8 | -48.7 | | -29.2 | | |
| Net Income | 11.2 | 33.1 | 29.0 | 17.6 | 11.1 | -36.9% |
Balance Sheet
|
|---|
| Cash | 64.9 | 69.3 | | | | |
| Short Term Debt | 0.0 | 0.0 | | | | |
| Long Term Debt | 0.0 | 0.0 | | | | |
Cash flow
|
|---|
| Capex | 16.8 | 60.4 | | | | |
Ratios
|
|---|
| Revenue growth | -10.4% | 9.3% | -20.4% | 14.1% | -11.0% | |
| EBITDA growth | -543.2% | -17.2% | | | | |
|
|---|
| EBITDA Margin | -8.9% | -6.7% | | -4.4% | |
| Net Income Margin | 1.7% | 4.6% | 5.0% | 2.7% | 1.9% | -0.8% |
| CAPEX, % of revenue | 2.5% | 8.3% | | | | |
|
|---|
| ROIC | -5.1% | -4.4% | | | | |
| ROE | 0.6% | 1.8% | | | | |
Peers in IT Software Products
Below we provide Softsol India benchmarking against other companies in IT Software Products 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 |
|---|
| Trigyn Technologies ($TRIGYN) | - | 27.1% | 29.8% | 9.1% | 26.9% |
| Tata Elxsi ($TATAELXSI) | - | 15.4% | 24.6% | 9.6% | 26.6% |
| Polaris Financial Technology ($POLARIS) | - | 10.2% | 7.3% | -21.9% | 7.6% |
| Cranes Software International ($CRANESSOFT) | - | 14.8% | 9.4% | 8.4% | 5.6% |
| Saksoft ($SAKSOFT) | - | 29.5% | 41.1% | 3.1% | 5.3% |
| |
|---|
| Median (13 companies) | 13.9% | 17.7% | 21.8% | 9.4% | -1.4% |
|---|
| Softsol India ($SOFTSOL) | - | 9.3% | -20.4% | 14.1% | -11.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Atishay Infotech ($ATISHAY) | 35.7% | 28.1% | 25.8% | 24.5% | 21.9% |
| Subex ($SUBEX) | 27.3% | 17.0% | 24.9% | 23.6% | 20.8% |
| Tata Elxsi ($TATAELXSI) | 13.8% | 11.9% | 17.6% | 20.9% | 23.0% |
| Cambridge Technology Enterprises ($CTE) | - | - | - | 20.9% | - |
| Virinchi Technologies ($VIRNICHIQ) | - | - | - | 17.4% | - |
| |
|---|
| Median (23 companies) | 9.6% | 9.4% | 10.1% | 9.4% | 10.0% |
|---|
| Softsol India ($SOFTSOL) | -8.9% | -6.7% | - | -4.4% | - |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aurionpro Solutions ($AURIONPRO) | 17.5% | 12.3% | 12.6% | 13.4% | - |
| Mastek ($MASTKBBPH) | 2.2% | - | 0.0% | 4.9% | 2.4% |
| Dion Global Solutions ($DION) | 39.9% | 11.9% | 29.6% | 4.0% | 18.4% |
| Tata Elxsi ($TATAELXSI) | 5.3% | 5.4% | 3.1% | 3.9% | 3.6% |
| Polaris Financial Technology ($POLARIS) | 7.2% | 2.5% | 1.5% | 3.9% | 1.6% |
| |
|---|
| Median (10 companies) | 4.5% | 4.3% | 2.3% | 3.0% | 2.4% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Elxsi ($TATAELXSI) | 22.5% | 19.1% | 38.3% | 55.4% | 65.9% |
| Mindteck (India) ($MINDTECK) | -2.6% | 1.2% | 20.0% | 17.5% | 10.6% |
| Blue Star Infotech ($BLUESTINFO) | - | 7.1% | 16.3% | 17.4% | - |
| Polaris Financial Technology ($POLARIS) | 19.5% | 15.1% | 12.6% | 16.2% | 24.8% |
| Aurionpro Solutions ($AURIONPRO) | 8.6% | 8.6% | 5.9% | 12.1% | - |
| |
|---|
| Median (31 companies) | 4.6% | 5.8% | 16.3% | 12.1% | 10.6% |
|---|
| Softsol India ($SOFTSOL) | -5.1% | -4.4% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Subex ($SUBEX) | 4.6x | 13.1x | 8.5x | 8.0x | 0.9x |
| Dion Global Solutions ($DION) | 11.8x | 11.3x | - | 7.4x | - |
| Aurionpro Solutions ($AURIONPRO) | 1.7x | 1.7x | 1.9x | 1.2x | - |
| Saksoft ($SAKSOFT) | 2.8x | 2.3x | 0.0x | 1.2x | 0.3x |
| Datamatics Global Services ($DATAMATICS) | 0.5x | 0.3x | 0.5x | 0.3x | 0.4x |
| |
|---|
| Median (20 companies) | 0.5x | 0.0x | 0.0x | 0.0x | 0.0x |
|---|
