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Financial Technologies (India) revenue growth accelerated to 48.1% in FY2018 vs. 6.5% a year earliner

21-05-2018 • About Financial Technologies (India) ($FINANTECH) • By InTwits

Financial Technologies (India) reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
  • The company operates at negative EBITDA Margin: -22.7%
  • Financial Technologies (India) motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -43.6% for the sames years
  • The company has unprofitable business model: ROIC is -2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Financial Technologies (India)'s Revenue surged on 48.1%. During FY2014-FY2018 Revenue growth bottomed in FY2015 at -62.4% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 34.6 pp from -57.3% to -22.7% in FY2018.

Net Income margin decreased on 6.9 pp from 10.6% to 3.8% in FY2018.

Investments (CAPEX, working capital and M&A)


The company's CAPEX/Revenue was 4.7% in FY2018. The company's CAPEX/Revenue decreased slightly on 1.9 pp from 6.5% in FY2015 to 4.7% in FY2018. It's average CAPEX/Revenue for the last three years was 6.4%.

Return on investment


The company operates at negative ROIC (-2.9%) and low but positive ROE (0.4%). ROIC increased slightly on 1.4 pp from -4.3% to -2.9% in FY2018. ROE showed almost no change in FY2018.

Leverage (Debt)


Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Debt dropped on 79.7% while cash jumped on 79.7%.

Financial Technologies (India) has no short term refinancing risk: cash is higher than short term debt (790.9%).

Financial and operational results


FY ended 31-03-2018

Financial Technologies (India) ($FINANTECH) key annual financial indicators

mln. INR201420152016201720182018/2017
P&L
Revenue5,5732,0952,0402,1723,21748.1%
SG&A174
EBITDA-2,368-2,235-1,245-732
Net Income4,2673,275231121-47.8%
Balance Sheet
Cash4,8443,8924,4518,00079.7%
Short Term Debt10203,9681,011-74.5%
Long Term Debt4,8045,0911,0080-100.0%
Cash flow
Capex137110200151-24.6%
Ratios
Revenue growth-24.7%-62.4%-2.6%6.5%48.1%
EBITDA growth-5.6%-44.3%-41.2%
EBITDA Margin-113.0%-109.6%-57.3%-22.7%34.6%
SG&A, % of revenue8.5%
Net Income Margin203.7%160.6%10.6%3.8%-6.9%
CAPEX, % of revenue6.5%5.4%9.2%4.7%-4.5%
ROIC-7.4%-4.3%-2.9%1.4%
ROE10.8%0.7%0.4%-0.4%

Peers in IT Consulting & Software


Below you can find Financial Technologies (India) benchmarking vs. other companies in IT Consulting & Software 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  FY2014 FY2015 FY2016 FY2017 FY2018
Hexaware Technologies ($HEXAWARE)13.0%21.0%13.2%11.5%-
Ajel ($AJEL)----25.6%-55.4%
 
Median (2 companies)14.0%10.1%11.6%-7.0%-55.4%
Financial Technologies (India) ($FINANTECH)--62.4%-2.6%6.5%48.1%


Top companies by EBITDA margin, %

Top  FY2014 FY2015 FY2016 FY2017 FY2018
Hexaware Technologies ($HEXAWARE)18.5%17.2%16.3%16.6%-
 
Median (1 company)18.3%13.2%14.3%16.6%-
Financial Technologies (India) ($FINANTECH)--113.0%-109.6%-57.3%-22.7%


Top companies by CAPEX/Revenue, %

Top  FY2014 FY2015 FY2016 FY2017 FY2018
Hexaware Technologies ($HEXAWARE)2.3%4.4%6.3%2.4%-
 
Median (1 company)2.9%3.0%2.7%2.4%-
Financial Technologies (India) ($FINANTECH)-6.5%5.4%9.2%4.7%


Top companies by ROIC, %

Top  FY2014 FY2015 FY2016 FY2017 FY2018
Hexaware Technologies ($HEXAWARE)34.7%35.7%33.8%33.5%-
Ajel ($AJEL)-----
 
Median (2 companies)22.9%20.6%22.1%33.5%-
Financial Technologies (India) ($FINANTECH)---7.4%-4.3%-2.9%


Top companies by Net Debt / EBITDA

Top  FY2014 FY2015 FY2016 FY2017 FY2018
Hexaware Technologies ($HEXAWARE)-0.6x-0.7x-0.5x-0.8x-
 
Median (1 company)-0.3x-0.2x-0.2x-0.8x-


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