Tata Global Beverages CAPEX jumped on 160% and Revenue showed almost no change
11 May 2018 • About Tata Global Beverages (
$TGBL) • By InTwits
Tata Global Beverages reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tata Global Beverages has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: ₹3,588m in FY2018, ₹1,382m in FY2017, ₹1,545m in FY2016, ₹1,792m in FY2015, ₹2,037m in FY2014
- The company has business model with low profitability: ROIC is 8.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tata Global Beverages's Revenue showed almost no change in FY2018. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.66 pp from 11.8% to 12.5% in FY2018. EBITDA Margin grew at 0.74 pp per annum in FY2014-FY2018.
Net Income margin increased slightly on 1.6 pp from 5.8% to 7.4% in FY2018. During the last 5 years Net Income margin bottomed in FY2016 at -0.084% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.3% in FY2018. The company's CAPEX/Revenue increased on 3.1 pp from 2.2% in FY2015 to 5.3% in FY2018. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at low ROIC (8.4%) and ROE (7.5%). ROIC showed almost no change in FY2018. ROE increased slightly on 1.2 pp from 6.2% to 7.5% in FY2018. During the last 5 years ROIC bottomed in FY2016 at 6.5% and was growing since that time. During the last 5 years ROE bottomed in FY2016 at -0.094% and was growing since that time.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 1.3x Debt / EBITDA. Debt surged on 37.1% while cash jumped on 117%.
Tata Global Beverages has no short term refinancing risk: cash is higher than short term debt (307.0%).
Financial and operational results
FY ended 31 Mar 2018
Tata Global Beverages ($TGBL) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 76,220 | 79,934 | 65,329 | 66,806 | 67,085 | 0.4% |
| SG&A | | | 11,025 | | | |
| EBITDA | 7,521 | 7,759 | 6,543 | 7,911 | 8,389 | 6.0% |
| Net Income | 4,805 | 2,478 | -55 | 3,894 | 4,956 | 27.2% |
Balance Sheet
|
|---|
| Cash | 7,182 | 5,365 | 4,929 | 5,657 | 12,285 | 117.2% |
| Short Term Debt | 3,844 | 4,401 | 8,499 | 3,202 | 4,002 | 25.0% |
| Long Term Debt | 10,537 | 8,839 | 5,041 | 4,501 | 6,560 | 45.7% |
Cash flow
|
|---|
| Capex | 2,037 | 1,792 | 1,545 | 1,382 | 3,588 | 159.7% |
Ratios
|
|---|
| Revenue growth | 4.8% | 4.9% | -18.3% | 2.3% | 0.4% | |
| EBITDA growth | -2.4% | 3.2% | -15.7% | 20.9% | 6.0% | |
|
|---|
| EBITDA Margin | 9.9% | 9.7% | 10.0% | 11.8% | 12.5% | 0.7% |
| SG&A, % of revenue | | | 16.9% | | | |
| Net Income Margin | 6.3% | 3.1% | -0.1% | 5.8% | 7.4% | 1.6% |
| CAPEX, % of revenue | 2.7% | 2.2% | 2.4% | 2.1% | 5.3% | 3.3% |
|
|---|
| ROIC | 8.1% | 8.0% | 6.5% | 8.0% | 8.4% | 0.4% |
| ROE | 9.0% | 4.4% | -0.1% | 6.2% | 7.5% | 1.2% |
| Net Debt/EBITDA | 1.0x | 1.0x | 1.3x | 0.3x | -0.2x | -0.5x |
Peers in Tea & Coffee
Below we provide Tata Global Beverages 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.
