Axis Bank reports 18.0% Net Income growth and 15.6% Revenue growth
29 Apr 2015 • About Axis Bank (
$AXB) • By InTwits
Axis Bank reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Axis Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 5,386 in FY2015, 6,078 in FY2014, 4,838 in FY2013, 3,966 in FY2012, 13,711 in FY2011
- The company has business model with low profitability: ROIC is at 8.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Axis Bank ($AXB) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 197,270 | 274,240 | 341,330 | 386,025 | 446,166 | 15.6% |
| Net Income | 33,399 | 42,198 | 52,348 | 63,101 | 74,479 | 18.0% |
Balance Sheet
|
|---|
| Cash | 138,862 | 107,029 | 147,921 | 170,414 | 198,188 | 16.3% |
| Short Term Debt | 126,899 | 152,778 | 215,763 | 187,333 | 162,944 | -13.0% |
| Long Term Debt | 262,679 | 340,717 | 441,051 | 527,392 | 843,935 | 60.0% |
Cash flow
|
|---|
| Capex | 13,711 | 3,966 | 4,838 | 6,078 | 5,386 | -11.4% |
Ratios
|
|---|
| Revenue growth | 26.2% | 39.0% | 24.5% | 13.1% | 15.6% | |
| Net Income Margin | 16.9% | 15.4% | 15.3% | 16.3% | 16.7% | 0.3% |
| CAPEX, % of revenue | 7.0% | 1.4% | 1.4% | 1.6% | 1.2% | -0.4% |
| ROIC | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% | -0.3% |
| ROE | 19.1% | 20.3% | 18.7% | 17.6% | 17.9% | 0.2% |
Revenue and profitability
The company's Revenue jumped on 15.6% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Axis Bank's CAPEX/Revenue was 1.2% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROE (17.87%) while ROIC is low (8.79%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt jumped on 40.9% in FY2015 while cash surged on 16.3% in FY2015.
Appendix 1: Peers in Banks
Below we provide Axis Bank benchmarking against other companies in Banks 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | 7.1% | 9.1% | 11.7% | 23.9% | |
| Sberbank Of Russia ($SBER) | 6.7% | 37.2% | 25.1% | 23.4% | |
| Turk Ekonomi Bankasi As ($TURA) | 67.5% | 34.8% | 6.3% | 23.0% | |
| |
|---|
| Median (41 companies) | 8.9% | 10.2% | 4.2% | 11.3% | 2.8% |
|---|
| Axis Bank ($AXB) | | 39.0% | 24.5% | 13.1% | 15.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| |
|---|
| Median (38 companies) | 2.3% | 2.4% | 2.7% | 2.1% | 3.5% |
|---|
| Axis Bank ($AXB) | 7.0% | 1.4% | 1.4% | 1.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (41 companies) | 7.0% | 6.0% | 5.2% | 4.4% | 1.0% |
|---|
| Axis Bank ($AXB) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
