Tribhovandas Bhimji Zaveri reports 37.9% EBITDA decline and 3.1 pp EBITDA Margin decline from 7.4% to 4.3%
12-05-2015 • About Tribhovandas Bhimji Zaveri (
$TBZ) • By InTwits
Tribhovandas Bhimji Zaveri reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tribhovandas Bhimji Zaveri has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 1.5%.
- CAPEX is quite volatile: 128 in FY2015, 188 in FY2014, 459 in FY2013, 73.9 in FY2012, 102 in FY2011
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with high leverage: Net Debt/EBITDA is 6.6x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tribhovandas Bhimji Zaveri ($TBZ) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,939 | 13,804 | 16,494 | 18,177 | 19,337 | 6.4% |
| SG&A | | | | | 633 | |
| EBITDA | 865 | 1,240 | 1,489 | 1,346 | 836 | -37.9% |
| Net Income | 392 | 572 | 845 | 550 | 243 | -55.8% |
Balance Sheet
|
|---|
| Cash | 54 | 33 | 111 | 126 | 340 | 169.5% |
| Short Term Debt | 2,056 | 2,049 | 4,000 | 5,515 | 5,763 | 4.5% |
| Long Term Debt | 62 | 29 | 195 | 165 | 120 | -27.4% |
Cash flow
|
|---|
| Capex | 102 | 74 | 459 | 188 | 128 | -31.8% |
Ratios
|
|---|
| Revenue growth | -49.8% | 15.6% | 19.5% | 10.2% | 6.4% | |
| EBITDA growth | 83.6% | 43.4% | 20.1% | -9.6% | -37.9% | |
| EBITDA Margin | 7.2% | 9.0% | 9.0% | 7.4% | 4.3% | -3.1% |
| Net Income Margin | 3.3% | 4.1% | 5.1% | 3.0% | 1.3% | -1.8% |
| SG&A, % of revenue | | | | | 3.3% | 3.3% |
| CAPEX, % of revenue | 0.9% | 0.5% | 2.8% | 1.0% | 0.7% | -0.4% |
| ROIC | 29.3% | 33.1% | 22.9% | 13.4% | 7.3% | -6.1% |
| ROE | 55.4% | 42.9% | 29.6% | 12.8% | 5.3% | -7.5% |
| Net Debt/EBITDA | 2.4x | 1.6x | 2.7x | 4.1x | 6.6x | 2.5x |
Revenue and profitability
The company's Revenue increased on 6.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 10.3% to 12.2% in FY2015.
Net Income marign decreased slightly on 1.8 pp from 3.0% to 1.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.66% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (7.28%) and ROE (5.34%). ROIC decreased on 6.1 pp from 13.4% to 7.3% in FY2015. ROE decreased on 7.5 pp from 12.8% to 5.3% in FY2015.
Leverage (Debt)
Debt level is 6.6x Net Debt / EBITDA and 7.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.5x from 4.1x to 6.6x in FY2015. Debt increased on 3.6% in FY2015 while cash surged on 170% in FY2015.
Valuation
The company's trades at EV/EBITDA 18.5x and P/E 40.7x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 21.8x with the industry average at 4.7x.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Tribhovandas Bhimji Zaveri benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Page Industries ($PAGEIND) | -73.3% | 39.0% | 26.3% | 37.5% | |
| Bhartiya International ($BIL) | -71.6% | 28.4% | 20.9% | 36.7% | |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -26.9% | 10.1% | 19.1% | 15.3% | -21.7% |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | | 15.6% | 19.5% | 10.2% | 6.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 11.0% | 9.3% | 8.8% | 10.8% | |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | |
| Tara Jewels ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| |
|---|
| Median (18 companies) | 8.7% | 7.5% | 5.5% | 5.4% | 5.6% |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 7.2% | 9.0% | 9.0% | 7.4% | 4.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | |
| |
|---|
| Median (14 companies) | 1.9% | 1.8% | 1.3% | 1.2% | |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 0.9% | 0.5% | 2.8% | 1.0% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | |
| Oscar Global ($OSCARGLO) | | | 12.6% | 52.3% | |
| Virat Industries ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | |
| |
|---|
| Median (40 companies) | 8.8% | 9.3% | 7.2% | 10.9% | |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 29.3% | 33.1% | 22.9% | 13.4% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | |
| |
|---|
| Median (24 companies) | 2.7x | 2.3x | 2.8x | 0.0x | 0.0x |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 2.4x | 1.6x | 2.7x | 4.1x | 6.6x |
