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 indicatorsmln. INR | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
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Revenue | 7,440 | 7,351 | 7,577 | 7,569 | 7,173 | -5.2% |
EBITDA | 406 | 471 | 122 | 222 | -484 | -317.8% |
Net Income | -81 | 170 | 342 | -35 | -1,022 | |
Balance Sheet
|
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Cash | 152 | 344 | 263 | 74 | 289 | 293.3% |
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% |
Cash flow
|
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Capex | 227 | 389 | 317 | 1,262 | 617 | -51.1% |
Ratios
|
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Revenue growth | 3.2% | -1.2% | 3.1% | -0.1% | -5.2% | |
EBITDA growth | 92.0% | 15.8% | -74.0% | 81.3% | -317.8% | |
|
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EBITDA Margin | 5.5% | 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 revenue | 3.0% | 5.3% | 4.2% | 16.7% | 8.6% | -8.1% |
|
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ROIC | 2.4% | 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/EBITDA | 10.2x | 6.9x | 29.6x | 19.4x | |
Jay Shree Tea & Industries ($JAYSHREETEA) key quoterly financial indicators
mln. INR | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
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P&L
|
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Revenue | 1,636 | 1,925 | 2,022 | 1,590 | | - | - | - | - |
EBITDA | -0 | 148 | -97 | -535 | | - | - | - | - |
Net Income | -147 | 34 | -250 | -658 | | - | - | - | - |
Balance Sheet
|
---|
Ratios
|
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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.