Warren Tea Net Income dropped on 63.4% while Revenue increased on 5.7%
26-05-2016 • About Warren Tea (
$WARRENTEA) • By InTwits
Warren Tea reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Warren Tea's Revenue increased on 5.7%.
Net Income margin decreased on 6.3 pp from 9.6% to 3.3% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 14.4% and was declining since that time.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 1.7x Debt / EBITDA. Debt jumped while cash surged.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
The company's trades at EV/EBITDA 25.3x and P/E 31.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Warren Tea ($WARRENTEA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,127 | 1,191 | 1,401 | 1,297 | 1,371 | 5.7% |
| EBITDA | 167 | 211 | 306 | | 55 | |
| Net Income | 60 | 137 | 202 | 125 | 46 | -63.4% |
Balance Sheet
|
|---|
| Cash | 185 | 88 | 75 | | 142 | |
| Short Term Debt | 1 | 0 | 0 | | 0 | |
| Long Term Debt | 0 | 0 | 0 | | 92 | |
Cash flow
|
|---|
| Capex | 119 | 23 | 31 | | | |
Ratios
|
|---|
| Revenue growth | 0.9% | -44.0% | 17.7% | -7.5% | 5.7% | |
| EBITDA growth | -58.2% | 26.2% | 44.8% | | | |
|
|---|
| EBITDA Margin | 7.9% | 17.7% | 21.8% | | 4.0% |
| Net Income Margin | 2.8% | 11.5% | 14.4% | 9.6% | 3.3% | -6.3% |
| CAPEX, % of revenue | 5.6% | 1.9% | 2.2% | | | |
|
|---|
| ROIC | 4.3% | 12.7% | 25.7% | | | |
| ROE | 3.7% | 10.8% | 20.5% | | | |
| Net Debt/EBITDA | -1.1x | -0.4x | -0.2x | | -0.9x |
Peers in Tea & Coffee
Below we provide Warren Tea 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 | 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 ($TATACOFFEE) | - | 7.3% | -3.0% | 5.1% | 4.2% |
| |
|---|
| Median (10 companies) | 14.8% | 10.2% | 8.9% | 5.0% | 4.2% |
|---|
| Warren Tea ($WARRENTEA) | - | -44.0% | 17.7% | -7.5% | 5.7% |
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% | 17.7% |
| 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 ($BBTC) | 6.0% | 6.8% | 8.6% | 10.5% | - |
| |
|---|
| Median (10 companies) | 11.1% | 13.8% | 13.5% | 10.1% | 13.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rossell India ($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% | 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) | 4.1% | 4.0% | 3.3% | 2.9% | 3.3% |
|---|
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 ($TATACOFFEE) | 10.9% | 16.2% | 14.0% | 14.0% | 11.5% |
| Tata Global Beverages ($TATAGLOBAL) | 8.2% | 9.6% | 8.1% | 8.0% | 6.5% |
| Rossell India ($ROSSELLIND) | - | 12.1% | 12.7% | 4.1% | - |
| |
|---|
| Median (13 companies) | 10.9% | 14.8% | 13.4% | 8.0% | 9.0% |
|---|
| Warren Tea ($WARRENTEA) | 4.3% | 12.7% | 25.7% | - | - |
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 ($TATACOFFEE) | 3.6x | 2.6x | 2.7x | 2.5x | 2.7x |
| Andrew Yule & Company ($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) | 2.1x | 1.8x | 0.8x | 1.1x | 2.0x |
|---|
