Tata Global Beverages reports 7,155% Net Income growth in 2017 and 2.3% Revenue growth
31-05-2017 • About Tata Global Beverages (
$TATAGLOBAL) • By InTwits
Tata Global Beverages reported FY2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tata Global Beverages has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 1.6%
- CAPEX is quite volatile: ₹2,440m in FY2017, ₹953m in FY2016, ₹9,475m in FY2015, ₹12,853m in FY2014, ₹10,541m in FY2013
- The company has business model with low profitability: ROIC is 8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tata Global Beverages's Revenue increased on 2.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.9 pp from 8.5% to 13.4% in FY2017. During the last 5 years EBITDA Margin bottomed in FY2015 at 9.7% and was growing since that time.
Net Income margin increased on 5.9 pp from -0.084% to 5.8% in FY2017.
Investments (CAPEX, working capital and M&A)
In FY2017 Tata Global Beverages had CAPEX/Revenue of 2.1%. CAPEX/Revenue decreased slightly on 0.60 pp from 2.7% in FY2014 to 2.1% in FY2017. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low ROIC (8.0%) and ROE (6.2%). ROIC increased slightly on 1.4 pp from 6.5% to 8.0% in FY2017. ROE increased on 6.3 pp from -0.094% to 6.2% in FY2017. During FY2013-FY2017 ROIC bottomed in FY2016 at 6.5%.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 1.3x to 0.3x in FY2017. Debt dropped on 43.1% while cash surged on 14.8%.
Tata Global Beverages has no short term refinancing risk: cash is higher than short term debt (176.7%).
Financial and operational results
FY ended 31-03-2017
Tata Global Beverages ($TATAGLOBAL) key annual financial indicators| mln. INR | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 72,703 | 76,220 | 79,934 | 65,329 | 66,806 | 2.3% |
| SG&A | | | | 11,025 | | |
| EBITDA | 7,702 | 7,521 | 7,759 | 6,543 | 7,911 | 20.9% |
| Net Income | 3,728 | 4,805 | 2,478 | -55 | 3,894 | |
Balance Sheet
|
|---|
| Cash | 2,631 | 7,182 | 5,365 | 4,929 | 5,657 | 14.8% |
| Short Term Debt | 7,161 | 3,844 | 4,401 | 8,499 | 3,202 | -62.3% |
| Long Term Debt | 6,727 | 10,537 | 8,839 | 5,041 | 4,501 | -10.7% |
Cash flow
|
|---|
| Capex | 1,793 | 2,037 | 1,792 | 1,545 | 1,382 | -10.5% |
Ratios
|
|---|
| Revenue growth | 10.4% | 4.8% | 4.9% | -18.3% | 2.3% | |
| EBITDA growth | 23.6% | -2.4% | 3.2% | -15.7% | 20.9% | |
|
|---|
| EBITDA Margin | 10.6% | 9.9% | 9.7% | 10.0% | 11.8% | 1.8% |
| SG&A, % of revenue | | | | 16.9% | | |
| Net Income Margin | 5.1% | 6.3% | 3.1% | -0.1% | 5.8% | 5.9% |
| CAPEX, % of revenue | 2.5% | 2.7% | 2.2% | 2.4% | 2.1% | -0.3% |
|
|---|
| ROIC | 9.6% | 8.1% | 8.0% | 6.5% | 8.0% | 1.4% |
| ROE | 8.0% | 9.0% | 4.4% | -0.1% | 6.2% | 6.3% |
| Net Debt/EBITDA | 1.5x | 1.0x | 1.0x | 1.3x | 0.3x | -1.1x |
Peers in Tea & Coffee
Below we provide Tata Global Beverages 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Mcleod Russel India ($MCLEODRUSS) | 15.4% | 7.2% | -8.0% | 17.0% | - |
| Rossell India ($ROSSELLIND) | 27.9% | 33.6% | -0.3% | 14.2% | - |
| Bombay Burmah Trading Corp ($BBTC) | 10.0% | 11.5% | 12.7% | 10.3% | - |
| Ccl Products (India) ($CCL) | 29.6% | 10.2% | 22.8% | 5.9% | - |
| Warren Tea ($WARRENTEA) | -44.0% | 17.7% | -7.5% | 5.7% | - |
| |
|---|
| Median (9 companies) | 8.7% | 10.0% | 4.9% | 5.8% | -1.2% |
|---|
| Tata Global Beverages ($TATAGLOBAL) | - | 4.8% | 4.9% | -18.3% | 2.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Ccl Products (India) ($CCL) | 20.1% | 21.5% | 20.6% | 22.0% | - |
| Tata Coffee ($TATACOFFEE) | 19.2% | 19.9% | 20.2% | 17.7% | - |
| Rossell India ($ROSSELLIND) | 27.5% | 26.5% | 14.7% | 14.7% | - |
| Bombay Burmah Trading Corp ($BBTC) | 6.8% | 8.6% | 10.5% | 13.4% | - |
| Mcleod Russel India ($MCLEODRUSS) | 23.2% | 20.4% | 8.1% | 8.8% | - |
| |
|---|
| Median (8 companies) | 17.4% | 18.5% | 10.5% | 11.1% | 6.4% |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 10.6% | 9.9% | 9.7% | 10.0% | 11.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Rossell India ($ROSSELLIND) | 6.7% | 14.8% | 11.1% | 15.8% | - |
| Ccl Products (India) ($CCL) | 5.8% | 8.3% | 2.4% | 9.4% | - |
| Mcleod Russel India ($MCLEODRUSS) | 6.0% | 9.4% | 9.8% | 6.7% | - |
| Tata Coffee ($TATACOFFEE) | 4.3% | 4.0% | 3.6% | 3.6% | - |
| Bombay Burmah Trading Corp ($BBTC) | 3.6% | 2.3% | 1.6% | 3.1% | - |
| |
|---|
| Median (7 companies) | 4.0% | 3.2% | 3.3% | 3.6% | 5.3% |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 2.5% | 2.7% | 2.2% | 2.4% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 13.9% | 20.6% | 23.7% | 31.0% | - |
| Ccl Products (India) ($CCL) | 18.0% | 19.7% | 23.0% | 25.7% | - |
| Tata Coffee ($TATACOFFEE) | 16.2% | 14.0% | 14.0% | 11.5% | - |
| Rossell India ($ROSSELLIND) | 12.1% | 12.7% | 4.1% | 5.0% | - |
| Mcleod Russel India ($MCLEODRUSS) | 15.7% | 12.9% | 2.0% | 3.0% | - |
| |
|---|
| Median (13 companies) | 14.8% | 15.4% | 9.1% | 5.0% | 4.1% |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 9.6% | 8.1% | 8.0% | 6.5% | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | - | 10.2x | 6.9x |
| Andrew Yule & Company ($ANDREWYU) | 5.4x | 1.9x | 1.7x | 4.7x | - |
| Mcleod Russel India ($MCLEODRUSS) | 0.5x | 0.7x | 4.2x | 4.7x | - |
| Rossell India ($ROSSELLIND) | 1.9x | 1.5x | 2.6x | 2.9x | - |
| Tata Coffee ($TATACOFFEE) | 2.6x | 2.7x | 2.5x | 2.7x | - |
| |
|---|
| Median (8 companies) | 1.8x | 0.4x | 1.1x | 2.8x | 6.9x |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 1.5x | 1.0x | 1.0x | 1.3x | 0.3x |
