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Jay Shree Tea & Industries reports 318% EBITDA decline in 2020 and 5.2% Revenue decline

01-09-2020 • About Jay Shree Tea & Industries ($JAYSHREETEA) • By InTwits

Jay Shree Tea & Industries reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
  • EBITDA Margin is quite volatile: -6.7% in FY2020, 2.9% in FY2019, 1.6% in FY2018, 6.4% in FY2017, 5.5% in FY2016
  • Jay Shree Tea & Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's in pair with industry average of 6.8%
  • CAPEX is quite volatile: ₹617m in FY2020, ₹1,262m in FY2019, ₹317m in FY2018, ₹389m in FY2017, ₹227m in FY2016
  • The company has unprofitable business model: ROIC is -10.4%
  • It operates with high leverage: Net Debt/EBITDA is 5.1x 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 decreased on 5.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 6.4% to 7.5% in FY2020.

Net Income margin dropped on 13.8 pp from -0.47% to -14.2% in FY2020. During the last 5 years Net Income margin topped in FY2018 at 4.5% and was declining since that time.

Investments (CAPEX, working capital and M&A)


In FY2020 Jay Shree Tea & Industries had CAPEX/Revenue of 8.6%. Jay Shree Tea & Industries showed CAPEX/Revenue growth of 3.3 pp from 5.3% in FY2017 to 8.6% in FY2020. Average CAPEX/Revenue for the last three years was 9.8%.

Return on investment


The company operates at negative ROIC (-10.4%) and ROE (-38.1%). ROIC dropped on 10.8 pp from 0.40% to -10.4% in FY2020. ROE dropped on 37.0 pp from -1.1% to -38.1% in FY2020. During FY2016-FY2020 ROE topped in FY2018 at 10.9% and was declining since that time.

Leverage (Debt)


Company's Net Debt / EBITDA is 5.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 19.4x from 19.4x to in FY2020. Debt increased slightly on 2.0% while cash surged on 293%.

Jay Shree Tea & Industries has short term refinancing risk: cash is only 9.2% of short term debt.

Financial and operational results


FY ended 31-03-2020

Jay Shree Tea & Industries ($JAYSHREETEA) key annual financial indicators

mln. INR201620172018201920202020/2019
P&L
Revenue7,4407,3517,5777,5697,173-5.2%
EBITDA406471122222-484-317.8%
Net Income-81170342-35-1,022
Balance Sheet
Cash15234426374289293.3%
Short Term Debt2,8752,1672,2493,0343,1564.0%
Long Term Debt1,4161,4371,6361,3441,308-2.6%
Cash flow
Capex2273893171,262617-51.1%
Ratios
Revenue growth3.2%-1.2%3.1%-0.1%-5.2%
EBITDA growth92.0%15.8%-74.0%81.3%-317.8%

EBITDA Margin5.5%6.4%1.6%2.9%-6.7%-9.7%
Net Income Margin-1.1%2.3%4.5%-0.5%-14.2%-13.8%
CAPEX, % of revenue3.0%5.3%4.2%16.7%8.6%-8.1%

ROIC2.4%4.1%-0.8%0.4%-10.4%-10.8%
ROE-2.0%4.9%10.9%-1.1%-38.1%-37.0%
Net Debt/EBITDA10.2x6.9x29.6x19.4x

Jay Shree Tea & Industries ($JAYSHREETEA) key quoterly financial indicators

mln. INRFY20Q1FY20Q2FY20Q3FY20Q4 YoY change
P&L
Revenue1,6361,9252,0221,590 ----
EBITDA-0148-97-535 ----
Net Income-14734-250-658 ----
Balance Sheet
Ratios
EBITDA Margin -0.0% 7.7% -4.8% -33.6% ----
Net Income Margin -9.0% 1.7% -12.4% -41.4% ----

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.