Jay Shree Tea & Industries CAPEX surged on 298% and Revenue showed almost no change
28-05-2019 • About Jay Shree Tea & Industries (
$JAYSHREETEA) • By InTwits
Jay Shree Tea & Industries reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 2.9% in FY2019, 1.6% in FY2018, 6.4% in FY2017, 5.5% in FY2016, 2.9% in FY2015
- Jay Shree Tea & Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's in pair with industry average of 6.8%
- CAPEX is quite volatile: ₹1,262m in FY2019, ₹317m in FY2018, ₹389m in FY2017, ₹227m in FY2016, ₹256m in FY2015
- The company has potentially unprofitable business model: ROIC is 0.4%
- It operates with high leverage: Net Debt/EBITDA is 19.4x 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 showed almost no change in FY2019. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 1.6% to 2.9% in FY2019.
Net Income margin decreased on 5.0 pp from 4.5% to -0.47% in FY2019. During the last 5 years Net Income margin topped in FY2018 at 4.5%.
Investments (CAPEX, working capital and M&A)
Jay Shree Tea & Industries's CAPEX/Revenue was 16.7% in FY2019. The company's CAPEX/Revenue surged on 13.6 pp from 3.0% in FY2016 to 16.7% in FY2019. It's average level of CAPEX/Revenue for the last three years was 8.7%. Battling declining revenue the company made large investments to CAPEX (568% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (0.4%) and negative ROE (-1.1%). ROIC increased slightly on 1.2 pp from -0.81% to 0.40% in FY2019. ROE dropped on 11.9 pp from 10.9% to -1.1% in FY2019. During FY2015-FY2019 ROE topped in FY2018 at 10.9%.
Leverage (Debt)
Debt level is 19.4x Net Debt / EBITDA and 19.7x Debt / EBITDA. Net Debt / EBITDA dropped on 10.2x from 29.6x to 19.4x in FY2019. Debt jumped on 12.7% while cash dropped on 72.0%.
Jay Shree Tea & Industries has short term refinancing risk: cash is only 2.4% of short term debt.
Financial and operational results
FY ended 31-03-2019
Jay Shree Tea & Industries ($JAYSHREETEA) key annual financial indicators| mln. INR | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 7,208 | 7,440 | 7,351 | 7,577 | 7,569 | -0.1% |
| EBITDA | 212 | 406 | 471 | 122 | 222 | 81.3% |
| Net Income | -229 | -81 | 170 | 342 | -35 | -110.3% |
Balance Sheet
|
|---|
| Cash | 840 | 152 | 344 | 263 | 74 | -72.0% |
| Short Term Debt | 3,574 | 2,875 | 2,167 | 2,249 | 3,034 | 34.9% |
| Long Term Debt | 1,400 | 1,416 | 1,437 | 1,636 | 1,344 | -17.8% |
Cash flow
|
|---|
| Capex | 256 | 227 | 389 | 317 | 1,262 | 298.3% |
Ratios
|
|---|
| Revenue growth | -3.3% | 3.2% | -1.2% | 3.1% | -0.1% | |
| EBITDA growth | -62.1% | 92.0% | 15.8% | -74.0% | 81.3% | |
|
|---|
| EBITDA Margin | 2.9% | 5.5% | 6.4% | 1.6% | 2.9% | 1.3% |
| Net Income Margin | -3.2% | -1.1% | 2.3% | 4.5% | -0.5% | -5.0% |
| CAPEX, % of revenue | 3.5% | 3.0% | 5.3% | 4.2% | 16.7% | 12.5% |
|
|---|
| ROIC | 0.5% | 2.4% | 4.1% | -0.8% | 0.4% | 1.2% |
| ROE | -5.2% | -2.0% | 4.9% | 10.9% | -1.1% | -11.9% |
| Net Debt/EBITDA | 19.5x | 10.2x | 6.9x | 29.6x | 19.4x | -10.2x |
Peers in Tea & Coffee
Below we provide Jay Shree Tea & Industries 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 4.9% | -18.3% | 2.3% | 0.4% | - |
| |
|---|
| Median (1 company) | 4.9% | 5.7% | 2.3% | 0.4% | - |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | - | -1.2% | 3.1% | -0.1% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 9.7% | 10.0% | 11.8% | 12.5% | - |
| |
|---|
| Median (1 company) | 10.1% | 11.7% | 11.8% | 12.5% | - |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | 5.5% | 6.4% | 1.6% | 2.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 2.2% | 2.4% | 2.1% | 5.3% | - |
| |
|---|
| Median (1 company) | 2.9% | 3.6% | 2.1% | 5.3% | - |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | 3.0% | 5.3% | 4.2% | 16.7% |
Top companies by ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 8.0% | 6.5% | 8.0% | 8.4% | - |
| |
|---|
| Median (1 company) | 8.0% | 6.5% | 8.0% | 8.4% | - |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | 2.4% | 4.1% | -0.8% | 0.4% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tata Global Beverages ($TATAGLOBAL) | 1.0x | 1.3x | 0.3x | -0.2x | - |
| |
|---|
| Median (1 company) | 1.1x | 2.0x | 0.3x | -0.2x | - |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | - | 10.2x | 6.9x | 29.6x | 19.4x |
