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.
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
Jay Shree Tea & Industries ($JAYSHREETEA) key quoterly financial indicators
|Short Term Debt||2,875||2,167||2,249||3,034||3,156||4.0%|
|Long Term Debt||1,416||1,437||1,636||1,344||1,308||-2.6%|
|Net Income Margin||-1.1%||2.3%||4.5%||-0.5%||-14.2%||-13.8%|
|CAPEX, % of revenue||3.0%||5.3%||4.2%||16.7%||8.6%||-8.1%|
|mln. INR||FY20Q1||FY20Q2||FY20Q3||FY20Q4|| ||YoY change|
|Net Income||-147||34||-250||-658|| ||-||-||-||-|
|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.