Jay Shree Tea & Industries Net Debt / EBITDA surged on 22.7x from 6.9x to 29.6x in 2018 while EBITDA dropped on 74.0%
29-05-2018 • About Jay Shree Tea & Industries (
$JAYSHREETEA) • By InTwits
Jay Shree Tea & Industries reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.6% in FY2018, 6.4% in FY2017, 5.5% in FY2016, 2.9% in FY2015, 7.5% in FY2014
- Jay Shree Tea & Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 12.3%
- CAPEX is quite volatile: ₹30m in FY2018, ₹325m in FY2017, ₹128m in FY2016, ₹9m in FY2015, ₹3m in FY2014
- The company has unprofitable business model: ROIC is -0.8%
- It operates with high leverage: Net Debt/EBITDA is 29.6x while industry average is 1.7x
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 3.1%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.8 pp from 6.4% to 1.6% in FY2018.
Net Income margin increased on 2.2 pp from 2.3% to 4.5% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2015 at -3.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Jay Shree Tea & Industries's CAPEX/Revenue was 4.2% in FY2018. The company showed small growth in CAPEX/Revenue of 0.63 pp from 3.5% in FY2015 to 4.2% in FY2018. It's average CAPEX/Revenue for the last three years was 4.2%. Jay Shree Tea & Industries investments to CAPEX were large: 259% of EBITDA.
Return on investment
The company operates at negative ROIC (-0.8%) and low but positive ROE (10.9%). ROIC decreased on 4.9 pp from 4.1% to -0.81% in FY2018. ROE increased on 6.0 pp from 4.9% to 10.9% in FY2018. During the last 5 years ROE bottomed in FY2015 at -5.2% and was growing since that time.
Leverage (Debt)
Debt level is 29.6x Net Debt / EBITDA and 31.7x Debt / EBITDA. Net Debt / EBITDA surged on 22.7x from 6.9x to 29.6x in FY2018. Debt increased on 7.8% while cash dropped on 23.5%.
Jay Shree Tea & Industries has short term refinancing risk: cash is only 11.7% of short term debt.
Financial and operational results
FY ended 31-03-2018
Jay Shree Tea & Industries ($JAYSHREETEA) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 7,450 | 7,208 | 7,440 | 7,351 | 7,577 | 3.1% |
| EBITDA | 558 | 212 | 406 | 471 | 122 | -74.0% |
| Net Income | 48 | -229 | -81 | 170 | 342 | 101.4% |
Balance Sheet
|
|---|
| Cash | 1,146 | 840 | 152 | 344 | 263 | -23.5% |
| Short Term Debt | 4,033 | 3,574 | 2,875 | 2,167 | 2,249 | 3.8% |
| Long Term Debt | 1,681 | 1,400 | 1,416 | 1,437 | 1,636 | 13.8% |
Cash flow
|
|---|
| Capex | 477 | 256 | 227 | 389 | 317 | -18.5% |
Ratios
|
|---|
| Revenue growth | 5.0% | -3.3% | 3.2% | -1.2% | 3.1% | |
| EBITDA growth | -42.7% | -62.1% | 92.0% | 15.8% | -74.0% | |
|
|---|
| EBITDA Margin | 7.5% | 2.9% | 5.5% | 6.4% | 1.6% | -4.8% |
| Net Income Margin | 0.7% | -3.2% | -1.1% | 2.3% | 4.5% | 2.2% |
| CAPEX, % of revenue | 6.4% | 3.5% | 3.0% | 5.3% | 4.2% | -1.1% |
|
|---|
| ROIC | 2.3% | 0.5% | 2.4% | 4.1% | -0.8% | -4.9% |
| ROE | 1.1% | -5.2% | -2.0% | 4.9% | 10.9% | 6.0% |
| Net Debt/EBITDA | 8.2x | 19.5x | 10.2x | 6.9x | 29.6x | 22.7x |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | - | 4.9% | -18.3% | 2.3% | 0.4% |
| |
|---|
| Median (1 company) | 10.0% | 4.9% | 5.7% | 2.3% | 0.4% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | - | -1.2% | 3.1% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 9.9% | 9.7% | 10.0% | 11.8% | 12.5% |
| |
|---|
| Median (1 company) | 17.1% | 10.1% | 11.7% | 11.8% | 12.5% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | 5.5% | 6.4% | 1.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 2.7% | 2.2% | 2.4% | 2.1% | 5.3% |
| |
|---|
| Median (1 company) | 2.7% | 2.9% | 3.6% | 2.1% | 5.3% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | 3.0% | 5.3% | 4.2% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 8.1% | 8.0% | 6.5% | 8.0% | 8.4% |
| |
|---|
| Median (1 company) | 14.0% | 8.0% | 6.5% | 8.0% | 8.4% |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | 2.4% | 4.1% | -0.8% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 1.0x | 1.0x | 1.3x | 0.3x | -0.2x |
| |
|---|
| Median (1 company) | 0.7x | 1.1x | 2.0x | 0.3x | -0.2x |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | 10.2x | 6.9x | 29.6x |
