Tata Global Beverages Net Income dropped on 48.4% in 2015 while Revenue increased on 3.3%
28 May 2015 • About Tata Global Beverages (
$TGBL) • By InTwits
Tata Global Beverages reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 9.7% in FY2015 vs. 9.7% in FY2014 vs. 10.2% in FY2011
- Tata Global Beverages has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 2.2%.
- CAPEX is quite volatile: 2,509 in FY2015, 4,081 in FY2014, 6,492 in FY2013, 6,978 in FY2012, 3,526 in FY2011
- The company has business model with low profitability: ROIC is at 8.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tata Global Beverages ($TGBL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 59,824 | 66,400 | 73,510 | 77,376 | 79,934 | 3.3% |
| EBITDA | 6,094 | 6,231 | 7,702 | 7,521 | 7,759 | 3.2% |
| Net Income | 2,543 | 3,561 | 3,728 | 4,805 | 2,478 | -48.4% |
Balance Sheet
|
|---|
| Cash | 9,920 | 595 | 2,631 | 7,182 | 5,365 | -25.3% |
| Short Term Debt | 3,187 | 1,766 | 7,161 | 3,844 | 4,401 | 14.5% |
| Long Term Debt | 7,228 | 7,393 | 6,727 | 10,537 | 8,839 | -16.1% |
Cash flow
|
|---|
| Capex | 1,013 | 1,310 | 1,793 | 2,037 | 1,792 | -12.0% |
Ratios
|
|---|
| Revenue growth | 3.4% | 11.0% | 10.7% | 5.3% | 3.3% | |
| EBITDA growth | -11.2% | 2.2% | 23.6% | -2.4% | 3.2% | |
| EBITDA Margin | 10.2% | 9.4% | 10.5% | 9.7% | 9.7% | -0.0% |
| Net Income Margin | 4.3% | 5.4% | 5.1% | 6.2% | 3.1% | -3.1% |
| CAPEX, % of revenue | 1.7% | 2.0% | 2.4% | 2.6% | 2.2% | -0.4% |
| ROIC | 7.9% | 8.2% | 9.6% | 8.1% | 8.0% | -0.1% |
| ROE | 6.6% | 8.4% | 8.0% | 9.0% | 4.4% | -4.6% |
| Net Debt/EBITDA | 0.1x | 1.4x | 1.5x | 1.0x | 1.0x | 0.1x |
Revenue and profitability
Tata Global Beverages's Revenue increased on 3.3% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign decreased on 3.1 pp from 6.2% to 3.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tata Global Beverages's CAPEX/Revenue was 2.2% in FY2015. Tata Global Beverages's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at low ROIC (7.97%) and ROE (4.37%). ROIC showed almost no change in FY2015. ROE decreased on 4.6 pp from 9.0% to 4.4% in FY2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 1.0x to 1.0x in FY2015. Debt decreased on 7.9% in FY2015 while cash dropped on 25.3% in FY2015.
Management team
Tata Global Beverages's CEO Ajoy Kumar Misra is a founder and has spent 4 years at the company. L Krishnakumar is a The company's CFO. L Krishnakumar has spent 4 years at the company.
Appendix 1: Peers in Tea & Coffee
Below you can find Tata Global Beverages 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.
