Bengal Tea & Fabrics EBITDA surged on 25.5% and EBITDA Margin increased slightly on 1.6 pp from 7.4% to 9.0%
20-05-2016 • About Bengal Tea & Fabrics (
$BENGALT) • By InTwits
Bengal Tea & Fabrics reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 9.0% in FY2016, 7.4% in FY2015, 13.7% in FY2014, 12.6% in FY2013, -0.3% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.9 pp from -3.8% to 2.1% in FY2016.
Net Income margin showed almost no change in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 5.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.7%. Bengal Tea & Fabrics's CAPEX/Revenue decreased on 9.3 pp from 11.0% in FY2013 to 1.7% in FY2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA surged2.3x from 0x to 2.3x in FY2016. Debt jumped while cash surged.
Bengal Tea & Fabrics has short term refinancing risk: cash is only 2.0% of short term debt.
Valuation and dividends
Bengal Tea & Fabrics's trades at EV/EBITDA 4.4x and P/E 22.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Bengal Tea & Fabrics ($BENGALT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,630 | 2,197 | 2,526 | 2,153 | 2,233 | 3.7% |
| EBITDA | -6 | 276 | 347 | 160 | 201 | 25.5% |
| Net Income | -122 | 115 | 125 | 19 | 19 | -3.6% |
Balance Sheet
|
|---|
| Cash | 39 | 50 | | | 4 | |
| Short Term Debt | 310 | 407 | | | 198 | |
| Long Term Debt | 468 | 526 | | | 269 | |
Cash flow
|
|---|
| Capex | 90 | 242 | | | 37 | |
Ratios
|
|---|
| Revenue growth | 1.2% | 34.8% | 15.0% | -14.8% | 3.7% | |
| EBITDA growth | -102.4% | -5,032.1% | 25.5% | -53.8% | 25.5% | |
|
|---|
| EBITDA Margin | -0.3% | 12.6% | 13.7% | 7.4% | 9.0% | 1.6% |
| Net Income Margin | -7.5% | 5.2% | 5.0% | 0.9% | 0.8% | -0.1% |
| CAPEX, % of revenue | 5.5% | 11.0% | | | 1.7% | |
|
|---|
| ROIC | -7.0% | 12.7% | | | | |
| ROE | -23.4% | 22.4% | | | | |
| Net Debt/EBITDA | | 3.2x | 0.0x | 0.0x | 2.3x |
Peers in Textiles
Below you can find Bengal Tea & Fabrics benchmarking vs. other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | -58.0% | -96.6% | 74,809.1% | 1,749.9% | - |
| Shri Dinesh Mills ($SHRIDINE) | 5.0% | 5.1% | -76.5% | 304.9% | - |
| Santaram Spinners ($SANTASPN) | 6.0% | 60.7% | -40.9% | 112.0% | - |
| Asahi Industries ($ASAHIIND) | 36.2% | 23.0% | 24.4% | 103.9% | - |
| Blue Chip Tex Industries ($BLUECHIPT) | - | 12.9% | 29.9% | 56.1% | 23.7% |
| |
|---|
| Median (74 companies) | 4.5% | 8.9% | 14.3% | 0.2% | 2.3% |
|---|
| Bengal Tea & Fabrics ($BENGALT) | - | 34.8% | 15.0% | -14.8% | 3.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sil Investments ($SILINV) | - | - | - | 93.8% | - |
| Swadeshi Polytex ($SWADPOL) | - | - | - | 64.4% | - |
| Binny ($BINNY) | - | - | - | 60.9% | - |
| Ruby Mills ($RUBYMILLS) | 28.3% | 25.1% | 28.6% | 29.3% | - |
| Premier Synthetics ($PREMSYN) | - | - | - | 25.9% | - |
| |
|---|
| Median (85 companies) | 6.5% | 9.3% | 9.5% | 7.0% | 12.7% |
|---|
| Bengal Tea & Fabrics ($BENGALT) | -0.3% | 12.6% | 13.7% | 7.4% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitin Spinners ($NITINSPIN) | 1.9% | 2.6% | 8.0% | 42.3% | 4.7% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 18.6% | 24.1% | 6.8% | 16.8% | - |
| Jindal Worldwide ($JINDWORLD) | 3.0% | 10.5% | 20.7% | 11.6% | - |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | 13.0% |
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| |
|---|
| Median (21 companies) | 3.2% | 5.3% | 6.8% | 6.7% | 6.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Maharaja Shree Umaid Mills ($MAHASHR) | -0.5% | 9.2% | 8.3% | 20.4% | - |
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | 14.4% |
| Arvind ($ARVIND) | 11.3% | 11.2% | 13.7% | 13.2% | 13.1% |
| |
|---|
| Median (127 companies) | 3.6% | 8.9% | 8.9% | 9.5% | 12.8% |
|---|
| Bengal Tea & Fabrics ($BENGALT) | -7.0% | 12.7% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | 7.3x |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | - |
| Dcm ($DCM) | 13.5x | 3.5x | 3.7x | 5.5x | - |
| Nahar Spinning Mills ($NAHARSPING) | 70.8x | 3.8x | 3.2x | 4.9x | - |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | - |
| |
|---|
| Median (70 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 1.6x |
|---|
| Bengal Tea & Fabrics ($BENGALT) | - | 3.2x | 0.0x | 0.0x | 2.3x |
