Axis Bank revenue jumped on 14.9% in 2016
26 Apr 2016 • About Axis Bank (
$AXB) • By InTwits
Axis Bank reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Axis Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 20.4%.
- CAPEX is quite volatile: 14,944 in FY2016, 5,386 in FY2015, 6,078 in FY2014, 4,838 in FY2013, 3,966 in FY2012
- The company has business model with low profitability: ROIC is at 7.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Axis Bank ($AXB) key annual financial indicators
| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 274,240 | 341,330 | 386,025 | 446,166 | 512,801 | 14.9% |
| Net Income | 42,198 | 52,348 | 63,101 | 74,479 | 83,497 | 12.1% |
Balance Sheet
|
|---|
| Cash | 107,029 | 147,921 | 170,414 | 198,188 | 223,612 | 12.8% |
| Short Term Debt | 152,778 | 215,763 | 187,333 | 162,944 | 157,172 | -3.5% |
| Long Term Debt | 340,717 | 441,051 | 527,392 | 843,935 | 1,044,937 | 23.8% |
Cash flow
|
|---|
| Capex | 3,966 | 4,838 | 6,078 | 5,386 | 14,944 | 177.5% |
Ratios
|
|---|
| Revenue growth | 39.0% | 24.5% | 13.1% | 15.6% | 14.9% | |
| Net Income Margin | 15.4% | 15.3% | 16.3% | 16.7% | 16.3% | -0.4% |
| CAPEX, % of revenue | 1.4% | 1.4% | 1.6% | 1.2% | 2.9% | 1.7% |
| ROIC | 9.6% | 8.9% | 9.1% | 8.8% | 7.8% | -1.0% |
| ROE | 20.3% | 18.7% | 17.6% | 17.9% | 17.0% | -0.9% |
Revenue and profitability
The company's Revenue jumped on 14.9% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.9%. The company showed small growth in CAPEX/Revenue of 1.5 pp from 1.4% in FY2013 to 2.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at good ROE (16.95%) while ROIC is low (7.83%). ROIC decreased slightly on 0.96 pp from 8.8% to 7.8% in FY2016. ROE decreased slightly on 0.92 pp from 17.9% to 17.0% in FY2016.
Leverage (Debt)
Debt jumped on 19.4% in FY2016 while cash jumped on 12.8% in FY2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (41 companies) | 9.3% | 4.2% | 11.5% | 4.2% | -4.2% |
|---|
| Axis Bank ($AXB) | | 24.5% | 13.1% | 15.6% | 14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (39 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 5.6% |
|---|
| Axis Bank ($AXB) | 1.4% | 1.4% | 1.6% | 1.2% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (41 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 2.6% |
|---|
| Axis Bank ($AXB) | 9.6% | 8.9% | 9.1% | 8.8% | 7.8% |
