Bombay Burmah Trading Corp EBITDA jumped on 37.0% in 2015 and Revenue jumped on 12.7%
22-05-2015 • About Bombay Burmah Trading Corp (
$BBTC) • By InTwits
Bombay Burmah Trading Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 10.5% in FY2015 vs. 8.6% in FY2014 vs. 6.2% in FY2011
- Bombay Burmah Trading Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 1,271 in FY2015, 1,647 in FY2014, 2,346 in FY2013, 2,813 in FY2012, 988 in FY2011
- The company has highly profitable business model: ROIC is at 23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bombay Burmah Trading Corp ($BBTC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 51,225 | 59,276 | 65,188 | 72,712 | 81,967 | 12.7% |
| EBITDA | 3,200 | 3,528 | 4,415 | 6,287 | 8,613 | 37.0% |
| Net Income | 1,176 | 2,302 | 1,323 | 2,071 | 3,569 | 72.3% |
Balance Sheet
|
|---|
| Cash | 810 | 2,040 | 1,851 | 1,479 | 3,084 | 108.5% |
| Short Term Debt | 3,742 | 6,610 | 5,452 | 2,986 | 3,769 | 26.3% |
| Long Term Debt | 10,441 | 5,920 | 4,216 | 4,884 | 5,062 | 3.7% |
Cash flow
|
|---|
| Capex | 988 | 2,813 | 2,346 | 1,647 | 1,271 | -22.8% |
Ratios
|
|---|
| Revenue growth | -46.2% | 15.7% | 10.0% | 11.5% | 12.7% | |
| EBITDA growth | 76.0% | 10.2% | 25.2% | 42.4% | 37.0% | |
| EBITDA Margin | 6.2% | 6.0% | 6.8% | 8.6% | 10.5% | 1.9% |
| Net Income Margin | 2.3% | 3.9% | 2.0% | 2.8% | 4.4% | 1.5% |
| CAPEX, % of revenue | 1.9% | 4.7% | 3.6% | 2.3% | 1.6% | -0.7% |
| ROIC | 9.4% | 10.7% | 13.9% | 20.6% | 23.7% | 3.0% |
| ROE | 13.9% | 23.1% | 11.8% | 17.0% | 25.0% | 8.0% |
| Net Debt/EBITDA | 4.2x | 3.0x | 1.8x | 1.0x | 0.7x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 12.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from -1.3% to 6.1% in FY2015.
Net Income marign increased slightly on 1.5 pp from 2.8% to 4.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bombay Burmah Trading Corp's CAPEX/Revenue was 1.6% in FY2015. The company's CAPEX/Revenue decreased on 3.2 pp from 4.7% in FY2012 to 1.6% in FY2015. It's average CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at high and attractive ROIC (23.68%) and ROE (24.95%). ROIC increased on 3.0 pp from 20.6% to 23.7% in FY2015. ROE increased on 8.0 pp from 17.0% to 25.0% in FY2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 1.0x to 0.7x in FY2015. Debt surged on 12.2% in FY2015 while cash jumped on 109% in FY2015.
Valuation
Bombay Burmah Trading Corp's trades at EV/EBITDA 4.4x and P/E 9.0x while industy averages are 10.5x and 26.1x. Bombay Burmah Trading Corp's EV/(EBITDA-CAPEX) is 5.2x with the industry average at 4.7x.
Appendix 1: Peers in Tea & Coffee
Below you can find Bombay Burmah Trading Corp benchmarking vs. other companies in Tea & Coffee 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 |
|---|
| 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 ($WARRENTEA) | 40.0% | 0.9% | -44.0% | 17.7% | |
| Ccl Products (India) ($CCL) | -65.3% | 38.0% | 29.6% | 10.2% | |
| Diana Tea Co ($DIANATEA) | -17.9% | -12.6% | -11.1% | 9.9% | |
| |
|---|
| Median (11 companies) | -37.7% | 15.5% | 7.4% | 7.8% | 4.8% |
|---|
| Bombay Burmah Trading Corp ($BBTC) | | 15.7% | 10.0% | 11.5% | 12.7% |
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 ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
| |
|---|
| Median (11 companies) | 16.8% | 9.4% | 17.1% | 17.1% | 14.8% |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 6.2% | 6.0% | 6.8% | 8.6% | 10.5% |
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% | 3.5% |
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
| |
|---|
| Median (9 companies) | 5.1% | 4.5% | 3.7% | 4.0% | 3.6% |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 1.9% | 4.7% | 3.6% | 2.3% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Warren Tea ($WARRENTEA) | 19.3% | 4.3% | 12.7% | 25.7% | |
| Ccl Products (India) ($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% |
| Mcleod Russel India ($MCLEODRUSS) | 17.5% | 18.6% | 15.7% | 12.9% | |
| |
|---|
| Median (14 companies) | 9.7% | 9.6% | 12.7% | 12.9% | 7.3% |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 9.4% | 10.7% | 13.9% | 20.6% | 23.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 5.9x | 8.6x | 4.5x | 8.2x | 19.5x |
| Tata Coffee ($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 ($ROSSELLIND) | 0.4x | 0.0x | 1.9x | 1.5x | |
| |
|---|
| Median (13 companies) | 1.6x | 1.7x | 1.9x | 0.7x | 2.5x |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 4.2x | 3.0x | 1.8x | 1.0x | 0.7x |
