Jay Shree Tea & Industries Net Debt / EBITDA dropped on 9.3x from 19.5x to 10.2x in 2016 and Debt dropped on 13.7%
03-05-2016 • About Jay Shree Tea & Industries (
$JAYSHREETEA) • By InTwits
Jay Shree Tea & Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 5.5% in FY2016, 2.9% in FY2015, 7.5% in FY2014, 13.7% in FY2013, 8.4% in FY2012
- Jay Shree Tea & Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: ₹868m in FY2016, ₹4,419m in FY2015, ₹189m in FY2014, ₹533m in FY2013, ₹89m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.4%
- It operates with high leverage: Net Debt/EBITDA is 10.2x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Jay Shree Tea & Industries's Revenue increased on 3.2%. During the last 5 years Revenue growth bottomed in FY2015 at -3.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.7 pp from -17.6% to 1.2% in FY2016.
Net Income margin increased on 2.1 pp from -3.2% to -1.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 3.0%. The company showed small CAPEX/Revenue decline of 0.64 pp from 3.7% in FY2013 to 3.0% in FY2016. Average CAPEX/Revenue for the last three years was 4.3%. The company invested a large share of EBITDA (55.8%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (2.4%) and negative ROE (-2.0%). ROIC increased slightly on 1.9 pp from 0.52% to 2.4% in FY2016. ROE increased on 3.2 pp from -5.2% to -2.0% in FY2016.
Leverage (Debt)
Debt level is 10.2x Net Debt / EBITDA and 10.6x Debt / EBITDA. Net Debt / EBITDA dropped on 9.3x from 19.5x to 10.2x in FY2016. Debt dropped on 13.7% while cash dropped on 81.9%.
Jay Shree Tea & Industries has short term refinancing risk: cash is only 5.3% of short term debt.
Financial and operational results
Jay Shree Tea & Industries ($JAYSHREETEA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,630 | 7,097 | 7,450 | 7,208 | 7,440 | 3.2% |
| EBITDA | 555 | 974 | 558 | 212 | 406 | 92.0% |
| Net Income | 204 | 444 | 48 | -229 | -81 | |
Balance Sheet
|
|---|
| Cash | 142 | 600 | 1,146 | 840 | 152 | -81.9% |
| Short Term Debt | 3,529 | 3,945 | 4,033 | 3,574 | 2,875 | -19.6% |
| Long Term Debt | 1,394 | 1,022 | 1,681 | 1,400 | 1,416 | 1.1% |
Cash flow
|
|---|
| Capex | 301 | 262 | 477 | 256 | 227 | -11.3% |
Ratios
|
|---|
| Revenue growth | 29.3% | 7.0% | 5.0% | -3.3% | 3.2% | |
| EBITDA growth | -31.0% | 75.6% | -42.7% | -62.1% | 92.0% | |
|
|---|
| EBITDA Margin | 8.4% | 13.7% | 7.5% | 2.9% | 5.5% | 2.5% |
| Net Income Margin | 3.1% | 6.3% | 0.7% | -3.2% | -1.1% | 2.1% |
| CAPEX, % of revenue | 4.5% | 3.7% | 6.4% | 3.5% | 3.0% | -0.5% |
|
|---|
| ROIC | 4.3% | 7.9% | 2.3% | 0.5% | 2.4% | 1.9% |
| ROE | 5.0% | 10.4% | 1.1% | -5.2% | -2.0% | 3.2% |
| Net Debt/EBITDA | 8.6x | 4.5x | 8.2x | 19.5x | 10.2x | -9.3x |
Peers in Tea & Coffee
Below you can find Jay Shree Tea & Industries 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ccl Products (India) ($CCL) | - | 29.6% | 10.2% | 22.8% | 5.9% |
| Bombay Burmah Trading Corp ($BBTC) | 15.7% | 10.0% | 11.5% | 12.7% | - |
| Diana Tea Co ($DIANATEA) | -12.6% | -11.1% | 9.9% | 11.6% | - |
| Goodricke Group ($GOODRICKE) | 17.5% | 7.4% | 4.3% | 9.9% | - |
| Tata Coffee ($TATACOFFEE) | 19.1% | 7.3% | -3.0% | 5.1% | - |
| |
|---|
| Median (11 companies) | 14.8% | 10.0% | 9.9% | 4.9% | -6.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ccl Products (India) ($CCL) | 20.3% | 20.1% | 21.5% | 20.6% | 22.0% |
| Tata Coffee ($TATACOFFEE) | 12.8% | 19.2% | 19.9% | 20.2% | - |
| B & A ($BNALTD) | 18.4% | 17.1% | 17.1% | 14.8% | - |
| Rossell India ($ROSSELLIND) | 31.0% | 27.5% | 26.5% | 14.7% | - |
| Bombay Burmah Trading Corp ($BBTC) | 6.0% | 6.8% | 8.6% | 10.5% | - |
| |
|---|
| Median (10 companies) | 9.5% | 17.1% | 17.1% | 10.1% | 16.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rossell India ($ROSSELLIND) | 11.0% | 6.7% | 14.8% | 11.1% | - |
| Mcleod Russel India ($MCLEODRUSS) | 10.0% | 6.0% | 9.4% | 9.8% | - |
| Tata Coffee ($TATACOFFEE) | 3.2% | 4.3% | 4.0% | 3.6% | - |
| Andrew Yule & Company ($ANDREWYU) | 2.8% | 1.8% | 2.4% | 2.9% | - |
| Ccl Products (India) ($CCL) | 11.1% | 5.8% | 8.3% | 2.4% | 9.4% |
| |
|---|
| Median (7 companies) | 4.7% | 3.6% | 2.7% | 2.9% | 5.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 10.7% | 13.9% | 20.6% | 23.7% | - |
| Ccl Products (India) ($CCL) | 16.1% | 18.0% | 19.7% | 23.0% | 25.7% |
| Tata Coffee ($TATACOFFEE) | 10.9% | 16.2% | 14.0% | 14.0% | - |
| Tata Global Beverages ($TATAGLOBAL) | 8.2% | 9.6% | 8.1% | 8.0% | 6.5% |
| Rossell India ($ROSSELLIND) | - | 12.1% | 12.7% | 4.1% | - |
| |
|---|
| Median (14 companies) | 10.8% | 13.9% | 14.0% | 8.0% | 16.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcleod Russel India ($MCLEODRUSS) | 0.4x | 0.5x | 0.7x | 4.2x | - |
| Rossell India ($ROSSELLIND) | 0.0x | 1.9x | 1.5x | 2.6x | - |
| Tata Coffee ($TATACOFFEE) | 3.6x | 2.6x | 2.7x | 2.5x | - |
| Andrew Yule & Company ($ANDREWYU) | 2.1x | 5.4x | 1.9x | 1.7x | - |
| Ccl Products (India) ($CCL) | 2.6x | 2.3x | 1.7x | 1.1x | 0.7x |
| |
|---|
| Median (10 companies) | 1.7x | 1.8x | 0.7x | 1.1x | 1.0x |
|---|
