TATA COFFEE 2018-19 Annual Report Analysis

Thu, 9 May

TATA COFFEE has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

TATA COFFEE Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY19 as against 16.9% in FY18.
• Depreciation charges increased by 3.8% and finance costs increased by 32.4% YoY, respectively.
• Other income declined by 16.3% YoY.
• Net profit for the year declined by 42.8% YoY.
• Net profit margins during the year declined from 11.8% in FY18 to 5.9% in FY19.

TATA COFFEE Income Statement 2018-19

TATA COFFEE Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 11.5%.
• Long-term debt stood at Rs 10 billion as compared to Rs 9 billion during FY18, a growth of 17.0%.
• Current assets rose 4% and stood at Rs 8 billion, while fixed assets rose 21% and stood at Rs 23 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 32 billion as against Rs 29 billion during FY18, thereby witnessing a growth of 10%.

TATA COFFEE Balance Sheet as on March 2019

TATA COFFEE Cash Flow Statement Analysis

• TATA COFFEE's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 16.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -92 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -326 million from the Rs 384 million net cash flows seen during FY18.

TATA COFFEE Cash Flow Statement 2018-19

Current Valuations for TATA COFFEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.2, an decline from the EPS of Rs 100.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.0, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for TATA COFFEE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY19, from 1.8x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 4.5x during FY19, from 6.7x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 9.1% during FY19, from 16.7% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 9.9% during FY19, from 11.2% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.8% during FY19, from 7.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

To see how TATA COFFEE has performed over the last 5 years, please visit here.

TATA COFFEE Share Price Performance

Over the last one year, TATA COFFEE share price has moved up from Rs 123.7 to Rs 85.0, registering a loss of Rs 38.7 or around 31.3%.

Overall, the S&P BSE SENSEX is up 7.0% over the year.

(To know more, check out historical annual results for TATA COFFEE and quarterly results for TATA COFFEE)