Onmobile Global EBITDA jumped on 13.6% and EBITDA Margin increased on 2.8 pp from 15.9% to 18.7%
31-05-2016 • About Onmobile Global (
$ONMOBILE) • By InTwits
Onmobile Global reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Onmobile Global has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's in pair with industry average of 9.3%
- CAPEX is quite volatile: ₹117m in FY2016, ₹188m in FY2015, ₹2,099m in FY2014, ₹621m in FY2013, ₹1,004m in FY2012
- The company has potentially unprofitable business model: ROIC is 0.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Onmobile Global's Revenue decreased on 3.7%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.8 pp from 15.9% to 18.7% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 15.4% and was growing since that time.
Net Income margin increased on 2.3 pp from -3.8% to -1.5% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at -15.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Onmobile Global had CAPEX/Revenue of 1.4%. The company showed decline in CAPEX/Revenue of 7.1 pp from 8.6% in FY2013 to 1.4% in FY2016. Average CAPEX/Revenue for the last three years was 9.3%.
Return on investment
The company operates at low but positive ROIC (0.5%) and negative ROE (-2.0%). ROIC increased slightly on 1.7 pp from -1.2% to 0.49% in FY2016. ROE increased on 2.5 pp from -4.5% to -2.0% in FY2016. During FY2012-FY2016 ROE bottomed in FY2014 at -15.7% and was growing since that time.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt dropped on 57.6% while cash jumped on 13.9%.
Onmobile Global has no short term refinancing risk: cash is higher than short term debt (1,054.8%).
Management team
The company's CFO Praveen Kumar K J has spent 6 years with the company.
Financial and operational results
Onmobile Global ($ONMOBILE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,380 | 7,253 | 8,653 | 8,471 | 8,157 | -3.7% |
| EBITDA | 1,423 | 1,610 | 1,337 | 1,344 | 1,527 | 13.6% |
| Net Income | 831 | 472 | -1,320 | -323 | -126 | |
Balance Sheet
|
|---|
| Cash | 1,637 | 1,550 | 815 | 1,812 | 2,063 | 13.9% |
| Short Term Debt | 817 | 488 | 440 | 277 | 196 | -29.4% |
| Long Term Debt | 5 | 3 | 443 | 185 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 1,004 | 621 | 2,099 | 188 | 117 | -38.1% |
Ratios
|
|---|
| Revenue growth | 18.8% | 13.7% | 19.3% | -2.1% | -3.7% | |
| EBITDA growth | 14.1% | 13.2% | -17.0% | 0.6% | 13.6% | |
|
|---|
| EBITDA Margin | 22.3% | 22.2% | 15.4% | 15.9% | 18.7% | 2.8% |
| Net Income Margin | 13.0% | 6.5% | -15.2% | -3.8% | -1.5% | 2.3% |
| CAPEX, % of revenue | 15.7% | 8.6% | 24.3% | 2.2% | 1.4% | -0.8% |
|
|---|
| ROIC | 6.3% | 6.4% | -0.3% | -1.2% | 0.5% | 1.7% |
| ROE | 9.7% | 5.3% | -15.7% | -4.5% | -2.0% | 2.5% |
| Net Debt/EBITDA | -0.6x | -0.7x | 0.1x | -1.0x | -1.2x | -0.2x |
Peers in Other Telecom Services
Below we provide Onmobile Global benchmarking against other companies in Other Telecom Services 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 |
|---|
| Bharti Infratel ($INFRATEL) | - | 8.7% | 5.4% | 7.8% | 5.5% |
| Gtl ($GTL) | - | 39.5% | -37.8% | 10.8% | -4.8% |
| |
|---|
| Median (2 companies) | - | 24.1% | -16.2% | 9.3% | 0.3% |
|---|
| Onmobile Global ($ONMOBILE) | - | 13.7% | 19.3% | -2.1% | -3.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bharti Infratel ($INFRATEL) | 37.4% | 37.3% | 40.6% | 42.9% | 43.6% |
| Gtl ($GTL) | 6.2% | 5.8% | 12.3% | -12.5% | - |
| |
|---|
| Median (2 companies) | 21.8% | 21.5% | 26.5% | 15.2% | 43.6% |
|---|
| Onmobile Global ($ONMOBILE) | 22.3% | 22.2% | 15.4% | 15.9% | 18.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bharti Infratel ($INFRATEL) | 16.6% | 16.3% | 14.5% | 17.8% | 17.3% |
| Gtl ($GTL) | 3.8% | 2.6% | 2.3% | 1.4% | - |
| |
|---|
| Median (2 companies) | 10.2% | 9.5% | 8.4% | 9.6% | 17.3% |
|---|
| Onmobile Global ($ONMOBILE) | 15.7% | 8.6% | 24.3% | 2.2% | 1.4% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bharti Infratel ($INFRATEL) | 7.3% | 7.9% | 10.3% | 12.9% | 14.6% |
| Gtl ($GTL) | - | -0.5% | 1.4% | -10.1% | - |
| |
|---|
| Median (2 companies) | 7.3% | 3.7% | 5.8% | 1.4% | 14.6% |
|---|
| Onmobile Global ($ONMOBILE) | 6.3% | 6.4% | -0.3% | -1.2% | 0.5% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bharti Infratel ($INFRATEL) | 1.0x | 0.9x | 0.7x | 0.5x | -0.1x |
| |
|---|
| Median (1 company) | 18.6x | 13.9x | 8.4x | 0.5x | -0.1x |
|---|
| Onmobile Global ($ONMOBILE) | -0.6x | -0.7x | 0.1x | -1.0x | -1.2x |
