Axis Bank reports 52.7% Net Income decline in 2017 while 12.3% Revenue growth
26-04-2017 • About Axis Bank (
$AXISBANK) • By InTwits
Axis Bank reported FY2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Axis Bank is a fast growth stock: FY2017 revenue growth was 12.3%, 5 year revenue CAGR was 16.0% at FY2017 ROIC 3.1%
- Axis Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 1.6%
- CAPEX is quite volatile: ₹7,737m in FY2017, ₹14,944m in FY2016, ₹5,386m in FY2015, ₹6,078m in FY2014, ₹4,838m in FY2013
- The company has potentially unprofitable business model: ROIC is 3.1%
- It operates with high leverage: Net Debt/EBITDA is 576.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Axis Bank's Revenue surged on 12.3%.
Net Income margin decreased on 9.4 pp from 16.3% to 6.9% in FY2017. During the last 5 years Net Income margin topped in FY2015 at 16.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Axis Bank's CAPEX/Revenue was 1.3% in FY2017. CAPEX/Revenue showed almost no change from FY2014 to FY2017. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at low ROIC (3.1%) and ROE (7.2%). ROIC decreased on 4.5 pp from 7.6% to 3.1% in FY2017. ROE decreased on 9.8 pp from 17.0% to 7.2% in FY2017. During FY2013-FY2017 ROIC topped in FY2014 at 9.1% and was declining since that time.
Leverage (Debt)
Debt increased on 2.2% while cash jumped on 38.0%.
Axis Bank has no short term refinancing risk: cash is higher than short term debt (154.5%).
Financial and operational results
FY ended 31-03-2017
Axis Bank ($AXISBANK) key annual financial indicators| mln. INR | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 341,330 | 386,025 | 446,166 | 512,801 | 575,967 | 12.3% |
| Net Income | 52,348 | 63,101 | 74,479 | 83,497 | 39,530 | -52.7% |
Balance Sheet
|
|---|
| Cash | 147,921 | 170,414 | 198,188 | 223,612 | 308,579 | 38.0% |
| Short Term Debt | 215,763 | 187,333 | 162,944 | 157,172 | 199,690 | 27.1% |
| Long Term Debt | 441,051 | 527,392 | 843,935 | 1,138,477 | 1,124,548 | -1.2% |
Cash flow
|
|---|
| Capex | 4,838 | 6,078 | 5,386 | 14,944 | 7,737 | -48.2% |
Ratios
|
|---|
| Revenue growth | 24.5% | 13.1% | 15.6% | 14.9% | 12.3% | |
|
|---|
| Net Income Margin | 15.3% | 16.3% | 16.7% | 16.3% | 6.9% | -9.4% |
| CAPEX, % of revenue | 1.4% | 1.6% | 1.2% | 2.9% | 1.3% | -1.6% |
|
|---|
| ROIC | 8.9% | 9.1% | 8.8% | 7.6% | 3.1% | -4.5% |
| ROE | 18.7% | 17.6% | 17.9% | 17.0% | 7.2% | -9.8% |
Peers in Banks
Below you can find Axis Bank benchmarking vs. other companies in Banks 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Kotak Mahindra Bank ($KOTAKBANK) | 22.9% | 7.1% | 26.1% | 29.2% | - |
| Dcb Bank ($DCBBANK) | 26.2% | 22.5% | 25.3% | 20.8% | - |
| Yes Bank ($YESBANK) | 33.7% | 21.6% | 17.7% | 18.9% | - |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 16.7% | 11.7% | 14.2% | 14.6% | - |
| Syndicate Bank ($SYNDIBANK) | 11.9% | 7.9% | 20.2% | 8.4% | - |
| |
|---|
| Median (28 companies) | 15.7% | 10.6% | 10.2% | 2.0% | 7.1% |
|---|
| Axis Bank ($AXISBANK) | - | 13.1% | 15.6% | 14.9% | 12.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Indian Overseas Bank ($IOB) | 1.0% | 0.9% | 0.6% | 4.8% | - |
| Union Bank Of India ($UNIONBANK) | 1.3% | 1.2% | 1.0% | 4.4% | - |
| Indian Bank ($INDIANB) | 1.3% | 1.0% | 1.4% | 4.3% | - |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 1.4% | 1.6% | 2.4% | 2.4% | - |
| Idbi Bank ($IDBIBANK) | 0.4% | 0.7% | 0.8% | 2.3% | - |
| |
|---|
| Median (28 companies) | 1.2% | 1.2% | 1.3% | 1.2% | 0.8% |
|---|
| Axis Bank ($AXISBANK) | 1.4% | 1.6% | 1.2% | 2.9% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Karur Vysya Bank ($KARURVYSYA) | 11.0% | 5.3% | 5.7% | 12.4% | - |
| Karnataka Bank ($KTKBANK) | 10.2% | 7.7% | 10.4% | 10.1% | - |
| Yes Bank ($YESBANK) | 8.4% | 8.4% | 8.7% | 9.0% | - |
| Kotak Mahindra Bank ($KOTAKBANK) | 6.5% | 7.1% | 8.5% | 7.3% | - |
| Lakshmi Vilas Bank ($LAKSHVILAS) | 7.5% | 0.7% | 6.1% | 5.8% | - |
| |
|---|
| Median (28 companies) | 6.1% | 3.2% | 4.2% | 3.6% | 1.5% |
|---|
| Axis Bank ($AXISBANK) | 8.9% | 9.1% | 8.8% | 7.6% | 3.1% |
