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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 15,673 18,040 15.1%
Other income Rs m 220 184 -16.3%
Total Revenues Rs m 15,894 18,224 14.7%
Gross profit Rs m 2,642 2,432 -8.0%
Depreciation Rs m 549 570 3.8%
Interest Rs m 346 458 32.4%
Profit before tax Rs m 1,968 1,588 -19.3%
Tax Rs m -11 632 -6,061.3%
Profit after tax Rs m 1,870 1,069 -42.8%
Gross profit margin % 16.9 13.5
Effective tax rate % -0.5 39.8
Net profit margin % 11.8 5.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 11,224 11,803 5.2
 
Current Liabilities Rs m 4,316 4,814 11.5
Long-term Debt Rs m 8,515 9,965 17.0
Total Liabilities Rs m 29,100 31,887 9.6
 
Current assets Rs m 7,651 7,935 3.7
Fixed Assets Rs m 19,125 23,063 20.6
Total Assets Rs m 29,100 31,887 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,243 1,449 16.5%
Cash Flow from Investing Activities Rs m -1,878 -1,703 -
Cash Flow from Financing Activities Rs m 1,020 -92 -
Net Cash Flow Rs m 384 -326 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 839.0 965.7
TTM Earnings per share Rs 100.1 57.2
Diluted earnings per share Rs 10.0 5.7
Price to Cash Flow x 0.7 9.7
TTM P/E ratio x 1.5 14.9
Price / Book Value ratio x 0.2 0.2
Market Cap Rs m 1,588 15,878
Dividends per share (Unadj.) Rs 1.5 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.8 1.6
Debtors’ Days Days 45 35
Interest coverage x 6.7 4.5
Debt to equity ratio x 0.8 0.8
Return on assets % 7.6 4.8
Return on equity % 16.7 9.1
Return on capital employed % 11.2 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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)