Sri Adhikari Brothers Television Network reports 57.9% CAPEX decline in 2016 while 27.3% Revenue growth
31-05-2016 • About Sri Adhikari Brothers Television Network (
$SABTN) • By InTwits
Sri Adhikari Brothers Television Network reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sri Adhikari Brothers Television Network is a fast growth stock: FY2016 revenue growth was 27.3%, 5 year revenue CAGR was 21.7% at FY2016 ROIC 9.5%
- EBITDA Margin is expanding: 48.4% in FY2016 vs. 43.7% in FY2015 vs. 7.5% in FY2012
- EBITDA Margin is quite volatile: 48.4% in FY2016, 43.7% in FY2015, 27.5% in FY2014, 24.7% in FY2013, 7.5% in FY2012
- Sri Adhikari Brothers Television Network has high CAPEX intensity: 5 year average CAPEX/Revenue was 42.4%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: ₹552m in FY2016, ₹1,311m in FY2015, ₹170m in FY2014, ₹82m in FY2013, ₹382m in FY2012
- The company has business model with low profitability: ROIC is 9.5%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sri Adhikari Brothers Television Network's Revenue surged on 27.3%. During the last 5 years Revenue growth bottomed in FY2015 at -42.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.6 pp from 8.6% to 14.1% in FY2016. EBITDA Margin stuck to a growing trend at 10.1 pp per annum in FY2012-FY2016.
Net Income margin increased slightly on 1.6 pp from 8.3% to 9.9% in FY2016. Net Income margin stuck to a growing trend at 6.2 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Sri Adhikari Brothers Television Network had CAPEX/Revenue of 41.9%. Sri Adhikari Brothers Television Network showed fast CAPEX/Revenue growth of 36.8 pp from 5.1% in FY2013 to 41.9% in FY2016. It's average CAPEX/Revenue for the last three years was 59.3%. The company invested a big chunk of EBITDA (86.5%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (9.5%) and ROE (8.7%). ROIC increased on 4.6 pp from 4.8% to 9.5% in FY2016. ROE increased on 4.1 pp from 4.7% to 8.7% in FY2016. ROE followed a growing trend at 5.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 1.6x from 3.0x to 1.4x in FY2016. Debt dropped on 36.6% while cash dropped on 74.7%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
Sri Adhikari Brothers Television Network's trades at EV/EBITDA 1.9x and P/E 2.4x while industy averages are 17.8x and 21.9x. Sri Adhikari Brothers Television Network's EV/(EBITDA-CAPEX) is 14.0x with the industry average at 22.8x.
Financial and operational results
Sri Adhikari Brothers Television Network ($SABTN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,320 | 1,612 | 1,804 | 1,035 | 1,317 | 27.3% |
| EBITDA | 99 | 399 | 495 | 452 | 638 | 41.0% |
| Net Income | -227 | 9 | 48 | 86 | 131 | 52.3% |
Balance Sheet
|
|---|
| Cash | 8 | 16 | 24 | 89 | 22 | -74.7% |
| Short Term Debt | 376 | 594 | 609 | 100 | 0 | -100.0% |
| Long Term Debt | 1,223 | 832 | 629 | 1,342 | 915 | -31.9% |
Cash flow
|
|---|
| Capex | 382 | 82 | 170 | 1,311 | 552 | -57.9% |
Ratios
|
|---|
| Revenue growth | 167.5% | 22.2% | 11.9% | -42.6% | 27.3% | |
| EBITDA growth | 875.1% | 302.9% | 24.2% | -8.6% | 41.0% | |
|
|---|
| EBITDA Margin | 7.5% | 24.7% | 27.5% | 43.7% | 48.4% | 4.7% |
| Net Income Margin | -17.2% | 0.5% | 2.7% | 8.3% | 9.9% | 1.6% |
| CAPEX, % of revenue | 28.9% | 5.1% | 9.4% | 126.7% | 41.9% | -84.8% |
|
|---|
| ROIC | -4.4% | 7.1% | 10.6% | 4.8% | 9.5% | 4.6% |
| ROE | -17.1% | 0.7% | 3.4% | 4.7% | 8.7% | 4.1% |
| Net Debt/EBITDA | 16.1x | 3.5x | 2.5x | 3.0x | 1.4x | -1.6x |
Peers in Movies & Entertainment
Below we provide Sri Adhikari Brothers Television Network benchmarking against other companies in Movies & Entertainment 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 |
|---|
| Saregama India ($SAREGAMA) | - | 16.1% | -4.6% | 5.1% | 18.7% |
| Shemaroo Entertainment ($SHEMAROO) | - | 18.0% | 23.2% | 21.7% | 16.2% |
| Dq Entertainment (International) ($DQE) | - | 1.0% | 4.5% | -40.6% | 15.4% |
| Eros International Media ($EROSMEDIA) | - | 13.1% | 6.2% | 25.3% | 11.4% |
| Media Matrix Worldwide ($MMWL) | - | - | - | - | - |
| |
|---|
| Median (8 companies) | -85.8% | 14.6% | 7.2% | 13.4% | 11.4% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | - | 22.2% | 11.9% | -42.6% | 27.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dq Entertainment (International) ($DQE) | 41.8% | 48.8% | 40.2% | 50.5% | 67.3% |
| Eros International Media ($EROSMEDIA) | 61.2% | 65.7% | 67.6% | 61.2% | 60.8% |
| Shemaroo Entertainment ($SHEMAROO) | 28.4% | 27.3% | 24.8% | 27.1% | 29.4% |
| Tips Industries ($TIPSINDLTD) | 17.8% | - | - | 14.8% | 21.9% |
| Mukta Arts ($MUKTAARTS) | 6.4% | 4.0% | 1.0% | 29.8% | 17.3% |
| |
|---|
| Median (8 companies) | 23.1% | 26.2% | 24.8% | 22.6% | 19.6% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 7.5% | 24.7% | 27.5% | 43.7% | 48.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prime Focus ($PFOCUS) | 24.3% | 19.8% | - | 20.8% | 16.8% |
| Dq Entertainment (International) ($DQE) | 5.5% | 2.0% | 0.0% | 0.6% | 4.0% |
| Saregama India ($SAREGAMA) | 2.7% | 3.4% | 4.3% | 1.8% | 3.3% |
| Media Matrix Worldwide ($MMWL) | - | - | - | - | 3.2% |
| Shemaroo Entertainment ($SHEMAROO) | 2.3% | 0.9% | 0.7% | 0.7% | 1.3% |
| |
|---|
| Median (6 companies) | 5.5% | 2.0% | 0.4% | 0.6% | 3.3% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 28.9% | 5.1% | 9.4% | 126.7% | 41.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shemaroo Entertainment ($SHEMAROO) | 23.5% | 22.9% | 21.0% | 21.8% | 21.3% |
| Eros International Media ($EROSMEDIA) | 18.4% | 15.2% | 17.6% | 17.7% | 14.1% |
| Dq Entertainment (International) ($DQE) | 9.4% | 9.3% | 6.2% | 3.4% | 6.9% |
| Saregama India ($SAREGAMA) | 4.1% | 1.7% | 8.2% | 3.4% | 5.1% |
| Prime Focus ($PFOCUS) | 19.3% | 7.5% | 6.0% | 2.9% | 0.1% |
| |
|---|
| Median (12 companies) | 6.7% | 8.4% | 8.2% | 7.7% | 6.0% |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | -4.4% | 7.1% | 10.6% | 4.8% | 9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prime Focus ($PFOCUS) | 1.9x | 3.5x | - | 3.6x | 4.9x |
| Dq Entertainment (International) ($DQE) | 1.8x | 1.9x | 2.8x | 5.0x | 3.9x |
| Shemaroo Entertainment ($SHEMAROO) | 1.7x | 1.9x | 2.3x | 1.2x | 1.8x |
| Eros International Media ($EROSMEDIA) | 0.5x | 0.5x | 0.4x | 0.4x | 0.4x |
| Bgil Films & Technologies ($BGIL) | 0.0x | -0.0x | - | - | 0.0x |
| |
|---|
| Median (9 companies) | 1.9x | 2.1x | 0.4x | 0.4x | 0.0x |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 16.1x | 3.5x | 2.5x | 3.0x | 1.4x |
