Tribhovandas Bhimji Zaveri Net Debt / EBITDA jumped on 9.6x from 6.6x to 16.2x in 2016 while EBITDA dropped on 55.0%
02-05-2016 • About Tribhovandas Bhimji Zaveri (
$TBZ) • By InTwits
Tribhovandas Bhimji Zaveri reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: 2.3% in FY2016 vs. 4.3% in FY2015 vs. 9.0% in FY2012
- EBITDA Margin is quite volatile: 2.3% in FY2016, 4.3% in FY2015, 7.4% in FY2014, 9.0% in FY2013, 9.0% in FY2012
- Tribhovandas Bhimji Zaveri has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: ₹97m in FY2016, ₹128m in FY2015, ₹188m in FY2014, ₹459m in FY2013, ₹74m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.5%
- It operates with high leverage: Net Debt/EBITDA is 16.2x while industry average is 4.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tribhovandas Bhimji Zaveri's Revenue dropped on 14.4%. Revenue decline was accelerating on average at -7.3 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 10.2% to 11.1% in FY2016. EBITDA Margin followed a declining trend at -1.8 pp per annum in FY2012-FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin decreased on 2.9 pp from 1.3% to -1.7% in FY2016. Net Income margin declined at -1.5 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 0.59%. The company's CAPEX/Revenue decreased on 2.2 pp from 2.8% in FY2013 to 0.59% in FY2016. It's average CAPEX/Revenue for the last three years was 0.76%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2013 at 2.8% and was declining since that time.
Return on investment
The company operates at low but positive ROIC (2.5%) and negative ROE (-6.1%). ROIC decreased on 4.7 pp from 7.3% to 2.5% in FY2016. ROE dropped on 11.5 pp from 5.3% to -6.1% in FY2016. ROIC followed a declining trend at -7.7 pp per annum in FY2012-FY2016. ROE declined at -12.2 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 16.2x and Debt / EBITDA is 17.3x. Net Debt / EBITDA surged on 9.6x from 6.6x to 16.2x in FY2016. Debt surged on 10.6% while cash surged on 15.7%. Net Debt/EBITDA followed a growing trend at 3.3x per annum in FY2012-FY2016.
Tribhovandas Bhimji Zaveri has short term refinancing risk: cash is only 6.1% of short term debt.
Management team
Tribhovandas Bhimji Zaveri's CEO Shrikant Gopaldas Zaveri has spent 5 years with the company. The company's CFO Saurav Banerjee has spent 6 years with the company.
Financial and operational results
Tribhovandas Bhimji Zaveri ($TBZ) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,804 | 16,494 | 18,177 | 19,337 | 16,543 | -14.4% |
| SG&A | | | | 633 | 509 | -19.7% |
| EBITDA | 1,240 | 1,489 | 1,346 | 836 | 376 | -55.0% |
| Net Income | 572 | 845 | 550 | 243 | -275 | -213.3% |
Balance Sheet
|
|---|
| Cash | 33 | 111 | 126 | 340 | 393 | 15.7% |
| Short Term Debt | 2,049 | 4,000 | 5,515 | 5,763 | 6,429 | 11.6% |
| Long Term Debt | 29 | 195 | 165 | 120 | 75 | -37.1% |
Cash flow
|
|---|
| Capex | 74 | 459 | 188 | 128 | 97 | -24.1% |
Ratios
|
|---|
| Revenue growth | 15.6% | 19.5% | 10.2% | 6.4% | -14.4% | |
| EBITDA growth | 43.4% | 20.1% | -9.6% | -37.9% | -55.0% | |
|
|---|
| EBITDA Margin | 9.0% | 9.0% | 7.4% | 4.3% | 2.3% | -2.1% |
| SG&A, % of revenue | | | | 3.3% | 3.1% | -0.2% |
| Net Income Margin | 4.1% | 5.1% | 3.0% | 1.3% | -1.7% | -2.9% |
| CAPEX, % of revenue | 0.5% | 2.8% | 1.0% | 0.7% | 0.6% | -0.1% |
|
|---|
| ROIC | 33.1% | 22.9% | 13.4% | 7.3% | 2.5% | -4.7% |
| ROE | 42.9% | 29.6% | 12.8% | 5.3% | -6.1% | -11.5% |
| Net Debt/EBITDA | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x | 9.6x |
Peers in Other Apparels & Accessories
Below we provide Tribhovandas Bhimji Zaveri benchmarking against other companies in Other Apparels & Accessories 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 |
|---|
| Bhartiya International ($BIL) | 28.4% | 20.9% | 36.7% | 34.7% | - |
| Page Industries ($PAGEIND) | 39.0% | 26.3% | 37.5% | 30.0% | - |
| Mini Diamonds (India) ($MINID) | 35.0% | 59.6% | 117.1% | 26.9% | - |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | - |
| Thangamayil Jewellery ($THANGAMAYL) | 72.0% | 34.6% | -21.8% | 19.3% | - |
| |
|---|
| Median (23 companies) | 10.1% | 19.1% | 15.3% | -0.9% | - |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | - | 19.5% | 10.2% | 6.4% | -14.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ceenik Exports (India) ($CEENIK) | - | - | - | 27.2% | - |
| Arrow Textiles ($ARROWTEX) | - | - | - | 25.2% | - |
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | - |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.5% | 5.5% | 5.4% | 5.2% | - |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 9.0% | 9.0% | 7.4% | 4.3% | 2.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | - |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | - |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | - |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | - |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | - |
| |
|---|
| Median (10 companies) | 1.8% | 1.3% | 1.2% | 1.4% | - |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 0.5% | 2.8% | 1.0% | 0.7% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | - |
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | - |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | - |
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | - |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | - |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 10.9% | 8.2% | - |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 33.1% | 22.9% | 13.4% | 7.3% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | - |
| Shrenuj & Co ($SHRENUJ) | 9.3x | 11.2x | 11.7x | 13.5x | - |
| Gokaldas Exports ($GOKEX) | - | - | 3.6x | 10.4x | - |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | - |
| Bhartiya International ($BIL) | 2.3x | 3.2x | 3.5x | 3.1x | - |
| |
|---|
| Median (24 companies) | 2.3x | 2.8x | 0.0x | 0.2x | - |
|---|
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
