Tata Coffee Net Income jumped on 47.8% in 2015 and Revenue increased on 5.1%
15-05-2015 • About Tata Coffee (
$TATACOFFEE) • By InTwits
Tata Coffee reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tata Coffee has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 266 in FY2015, 246 in FY2014, 521 in FY2013, 1,349 in FY2012, 975 in FY2011
- The company has highly profitable business model: ROIC is at 14.0%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tata Coffee ($TATACOFFEE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,988 | 15,475 | 16,611 | 16,110 | 16,929 | 5.1% |
| EBITDA | 2,566 | 1,986 | 3,191 | 3,208 | 3,416 | 6.5% |
| Net Income | 726 | 812 | 1,162 | 815 | 1,204 | 47.8% |
Balance Sheet
|
|---|
| Cash | 182 | 179 | 534 | 841 | 408 | -51.5% |
| Short Term Debt | 567 | 477 | 1,550 | 1,603 | 1,789 | 11.6% |
| Long Term Debt | 6,553 | 6,904 | 7,365 | 7,826 | 7,230 | -7.6% |
Cash flow
|
|---|
| Capex | 250 | 493 | 722 | 641 | 611 | -4.7% |
Ratios
|
|---|
| Revenue growth | -36.3% | 19.1% | 7.3% | -3.0% | 5.1% | |
| EBITDA growth | -4.4% | -22.6% | 60.6% | 0.5% | 6.5% | |
| EBITDA Margin | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% | 0.3% |
| Net Income Margin | 5.6% | 5.2% | 7.0% | 5.1% | 7.1% | 2.1% |
| CAPEX, % of revenue | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% | -0.4% |
| ROIC | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% | 0.1% |
| ROE | 18.1% | 17.2% | 20.5% | 12.4% | 16.2% | 3.8% |
| Net Debt/EBITDA | 2.7x | 3.6x | 2.6x | 2.7x | 2.5x | -0.2x |
Revenue and profitability
Tata Coffee's Revenue increased on 5.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 12.7% to 8.2% in FY2015.
Net Income marign increased on 2.1 pp from 5.1% to 7.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.6%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 4.0%.
Return on investment
The company operates at good ROIC (14.01%) and ROE (16.17%). ROIC showed almost no change in FY2015. ROE increased on 3.8 pp from 12.4% to 16.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.6x. Net Debt / EBITDA dropped on 0.2x from 2.7x to 2.5x in FY2015. Debt decreased on 4.4% in FY2015 while cash dropped on 51.5% in FY2015.
Management team
The company's CEO is Sanjiv Sarin. Sanjiv Sarin has 3 years tenure at the company. K P Venkataramanan is a The company's CFO. K P Venkataramanan has spent 4 years at the company.
Appendix 1: Peers in Tea & Coffee
Below we provide Tata Coffee benchmarking against other companies in Tea & Coffee 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 |
|---|
| Rossell India ($ROSSELLIND) | -51.1% | 5.4% | 27.9% | 33.6% | |
| Andrew Yule & Company ($ANDREWYU) | -40.5% | 17.1% | 4.7% | 19.3% | |
| Warren Tea ($WARRENTEA) | 40.0% | 0.9% | -44.0% | 17.7% | |
| Bombay Burmah Trading Corp ($BBTC) | -46.2% | 15.7% | 10.0% | 11.5% | |
| Ccl Products (India) ($CCL) | -65.3% | 38.0% | 29.6% | 10.2% | |
| |
|---|
| Median (11 companies) | -39.6% | 14.8% | 10.0% | 9.9% | 4.8% |
|---|
| Tata Coffee ($TATACOFFEE) | | 19.1% | 7.3% | -3.0% | 5.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 32.2% | 31.0% | 27.5% | 26.5% | |
| Warren Tea ($WARRENTEA) | 19.0% | 7.9% | 17.7% | 21.8% | |
| Ccl Products (India) ($CCL) | 18.0% | 20.3% | 20.1% | 21.5% | |
| Mcleod Russel India ($MCLEODRUSS) | 28.5% | 27.5% | 23.2% | 20.4% | |
| B & A ($BNALTD) | | 18.4% | 17.1% | 17.1% | 14.8% |
| |
|---|
| Median (11 companies) | 14.1% | 8.4% | 13.7% | 9.7% | 14.8% |
|---|
| Tata Coffee ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 3.3% | 11.0% | 6.7% | 14.8% | |
| Mcleod Russel India ($MCLEODRUSS) | 4.9% | 10.0% | 6.0% | 9.4% | |
| Ccl Products (India) ($CCL) | 12.0% | 11.1% | 5.8% | 8.3% | |
| Jay Shree Tea & Industries ($JAYSHREETEA) | 10.7% | 4.5% | 3.7% | 6.4% | |
| Tata Global Beverages ($TATAGLOBAL) | 1.7% | 2.0% | 2.4% | 2.6% | |
| |
|---|
| Median (9 companies) | 5.1% | 4.7% | 3.6% | 2.6% | |
|---|
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Warren Tea ($WARRENTEA) | 19.3% | 4.3% | 12.7% | 25.7% | |
| Bombay Burmah Trading Corp ($BBTC) | 9.4% | 10.7% | 13.9% | 20.6% | |
| Ccl Products (India) ($CCL) | 9.7% | 16.1% | 18.0% | 19.7% | |
| Goodricke Group ($GOODRICKE) | 27.7% | 13.0% | 20.9% | 16.8% | |
| Mcleod Russel India ($MCLEODRUSS) | 17.5% | 18.6% | 15.7% | 12.9% | |
| |
|---|
| Median (14 companies) | 9.7% | 9.4% | 12.7% | 12.9% | |
|---|
| Tata Coffee ($TATACOFFEE) | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 5.9x | 8.6x | 4.5x | 8.2x | |
| Andrew Yule & Company ($ANDREWYU) | 4.3x | 2.1x | 5.4x | 1.9x | |
| Ccl Products (India) ($CCL) | 3.7x | 2.6x | 2.3x | 1.7x | |
| Rossell India ($ROSSELLIND) | 0.4x | 0.0x | 1.9x | 1.5x | |
| Bombay Burmah Trading Corp ($BBTC) | 4.2x | 3.0x | 1.8x | 1.0x | |
| |
|---|
| Median (13 companies) | 1.6x | 1.7x | 1.8x | 0.7x | 0.0x |
|---|
| Tata Coffee ($TATACOFFEE) | 2.7x | 3.6x | 2.6x | 2.7x | 2.5x |
