Jay Shree Tea & Industries Net Debt / EBITDA jumped on 11.3x from 8.2x to 19.5x in 2015 while Debt dropped on 12.9%
18-05-2015 • About Jay Shree Tea & Industries (
$JAYSHREETEA) • By InTwits
Jay Shree Tea & Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jay Shree Tea & Industries is a company in decline: FY2015 revenue growth was -3.3%, 5 years revenue CAGR was -2.9%
- EBITDA Margin is quite volatile: 2.9% in FY2015, 7.5% in FY2014, 13.7% in FY2013, 8.4% in FY2012, 15.7% in FY2011
- Jay Shree Tea & Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 256 in FY2015, 477 in FY2014, 262 in FY2013, 301 in FY2012, 549 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.5%
- It operates with high leverage: Net Debt/EBITDA is 19.5x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jay Shree Tea & Industries ($JAYSHREETEA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,129 | 6,630 | 7,097 | 7,450 | 7,208 | -3.3% |
| EBITDA | 804 | 555 | 974 | 558 | 212 | -62.1% |
| Net Income | 481 | 204 | 444 | 48 | -229 | -571.7% |
Balance Sheet
|
|---|
| Cash | 120 | 142 | 600 | 1,146 | 840 | -26.7% |
| Short Term Debt | 3,154 | 3,529 | 3,945 | 4,033 | 3,574 | -11.4% |
| Long Term Debt | 1,689 | 1,394 | 1,022 | 1,681 | 1,400 | -16.7% |
Cash flow
|
|---|
| Capex | 549 | 301 | 262 | 477 | 256 | -46.4% |
Ratios
|
|---|
| Revenue growth | -38.6% | 29.3% | 7.0% | 5.0% | -3.3% | |
| EBITDA growth | 16.8% | -31.0% | 75.6% | -42.7% | -62.1% | |
| EBITDA Margin | 15.7% | 8.4% | 13.7% | 7.5% | 2.9% | -4.6% |
| Net Income Margin | 9.4% | 3.1% | 6.3% | 0.7% | -3.2% | -3.8% |
| CAPEX, % of revenue | 10.7% | 4.5% | 3.7% | 6.4% | 3.5% | -2.9% |
| ROIC | 9.7% | 4.3% | 7.9% | 2.3% | 0.5% | -1.8% |
| ROE | 15.6% | 5.0% | 10.4% | 1.1% | -5.2% | -6.3% |
| Net Debt/EBITDA | 5.9x | 8.6x | 4.5x | 8.2x | 19.5x | 11.3x |
Revenue and profitability
Jay Shree Tea & Industries's Revenue decreased on 3.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 10.4% to 11.8% in FY2015.
Net Income marign decreased on 3.8 pp from 0.65% to -3.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.5%. CAPEX/Revenue decreased slightly on 0.99 pp from 4.5% in FY2012 to 3.5% in FY2015. It's average CAPEX/Revenue for the last three years was 4.5%.Battling declining revenue the company made large investments to CAPEX (121% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (0.52%) and negative ROE (-5.20%). ROIC decreased slightly on 1.8 pp from 2.3% to 0.52% in FY2015. ROE decreased on 6.3 pp from 1.1% to -5.2% in FY2015.
Leverage (Debt)
Debt level is 19.5x Net Debt / EBITDA and 23.5x Debt / EBITDA. Net Debt / EBITDA surged on 11.3x from 8.2x to 19.5x in FY2015. Debt dropped on 12.9% in FY2015 while cash dropped on 26.7% in FY2015.
Appendix 1: Peers in Tea & Coffee
Below we provide Jay Shree Tea & Industries 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) ($CCL) | -65.3% | 38.0% | 29.6% | 10.2% | |
| |
|---|
| Median (11 companies) | -40.5% | 14.8% | 10.0% | 9.9% | 4.9% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | | 29.3% | 7.0% | 5.0% | -3.3% |
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% | |
| Tata Coffee ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
| |
|---|
| Median (11 companies) | 15.3% | 9.4% | 17.1% | 17.1% | 17.5% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 15.7% | 8.4% | 13.7% | 7.5% | 2.9% |
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) ($CCL) | 12.0% | 11.1% | 5.8% | 8.3% | |
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
| Tata Global Beverages ($TATAGLOBAL) | 1.7% | 2.0% | 2.4% | 2.6% | |
| |
|---|
| Median (9 companies) | 4.1% | 4.7% | 3.6% | 2.6% | 3.6% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 10.7% | 4.5% | 3.7% | 6.4% | 3.5% |
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% | |
| Tata Coffee ($TATACOFFEE) | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% |
| |
|---|
| Median (14 companies) | 9.7% | 10.8% | 13.9% | 14.0% | 14.0% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 9.7% | 4.3% | 7.9% | 2.3% | 0.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Coffee ($TATACOFFEE) | 2.7x | 3.6x | 2.6x | 2.7x | 2.5x |
| Andrew Yule & Company ($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 ($BBTC) | 4.2x | 3.0x | 1.8x | 1.0x | |
| |
|---|
| Median (13 companies) | 1.6x | 1.7x | 1.8x | 0.7x | 1.3x |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 5.9x | 8.6x | 4.5x | 8.2x | 19.5x |
