TCS Group Holding reports 45.6% Net Income decline
02 Mar 2016 • About TCS Group Holding (
$TCS) • By InTwits
TCS Group Holding reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TCS Group Holding has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 5.3%.
- CAPEX is quite volatile: 1,726 in 2015, 126 in 2014, 341 in 2013, 558 in 2012, 253 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TCS Group Holding ($TCS) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,978 | 20,187 | 35,120 | 39,176 | 43,342 | 10.6% |
| Net Income | 2,011 | 3,787 | 5,758 | 3,401 | 1,850 | -45.6% |
Balance Sheet
|
|---|
| Cash | 5,467 | 14,666 | 19,857 | 11,385 | 14,364 | 26.2% |
| Short Term Debt | 0 | 517 | 0 | 10,331 | 6,392 | -38.1% |
| Long Term Debt | 13,264 | 27,083 | 32,885 | 30,665 | 16,514 | -46.1% |
Cash flow
|
|---|
| Capex | 253 | 558 | 341 | 126 | 1,726 | 1,267.1% |
Ratios
|
|---|
| Revenue growth | 120.8% | 102.3% | 74.0% | 11.5% | 10.6% | |
| Net Income Margin | 20.2% | 18.8% | 16.4% | 8.7% | 4.3% | -4.4% |
| CAPEX, % of revenue | 2.5% | 2.8% | 1.0% | 0.3% | 4.0% | 3.7% |
| ROIC | 21.7% | 16.6% | 14.2% | 6.7% | 3.4% | -3.3% |
| ROE | 85.0% | 58.7% | 39.0% | 16.3% | 8.4% | -7.9% |
Revenue and profitability
The company's Revenue surged on 10.6% in 2015.
Net Income marign decreased on 4.4 pp from 8.7% to 4.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.0% in 2015. CAPEX/Revenue increased slightly on 1.2 pp from 2.8% in 2012 to 4.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at low ROIC (3.44%) and ROE (8.43%). ROIC decreased on 3.3 pp from 6.7% to 3.4% in 2015. ROE decreased on 7.9 pp from 16.3% to 8.4% in 2015.
Leverage (Debt)
Debt dropped on 44.1% in 2015 while cash jumped on 26.2% in 2015.
Appendix 1: Peers in Banks
Below you can find TCS Group Holding 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 6.4% | 9.3% | 4.2% | 12.1% | 3.7% |
|---|
| TCS Group Holding ($TCS) | | 102.3% | 74.0% | 11.5% | 10.6% |
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% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | 2.7% |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.2% | 2.8% | 2.2% | 2.4% |
|---|
| TCS Group Holding ($TCS) | 2.5% | 2.8% | 1.0% | 0.3% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| |
|---|
| Median (43 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 3.3% |
|---|
| TCS Group Holding ($TCS) | 21.7% | 16.6% | 14.2% | 6.7% | 3.4% |
