Andrew Yule & Co Ltd Sector Industry

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1 Page 1 of 5 Company Profile ndrew Yule & Co Ltd was originally founded by ndrew Yule in It was incorporated as a private company on May 26, 1919; and is based in Kolkata. It became a central public sector enterprise in 1979 with the acquisition of 49% equity share in 1974 and 2% in 1979 by Government of India. The company is engaged in tea, electrical, and engineering businesses. The company s plants are located in Kalyani in West Bengal, Kolkata, and Perungudi in Chennai. Stock Price Last Close Price (01/02/2016) Market Cap (Cr.) (31/12/2015) Price in Rs. 52 Wk High/Low 33.85/0.01 vg. Volume (1 Mo) (Rescaled to 100 for ease of comparison) bout 88% of the shareholding is held by the promoters, 5.5% is held by institutions, and the remaining 6.5% is held by non-institutions. Mr. Kallol Datta is the Chairman and Managing Director of the company. He received his undergraduate degree from the University of Calcutta and a graduate degree from Indian Institute of Technology Kharagpur. Business Overview ndrew Yule is a manufacturing and industrial conglomerate, which operates in four segments namely, engineering, electrical, tea and printing. The engineering segment is engaged in the manufacturing of industrial fans, air & water pollution control equipment and turn-key projects. The electrical segment is engaged in the manufacture of power and distribution transformers, HT switchgears and LT control gears, flame proof switchgears, voltage regulators and rectifiers, plant communication, fire alarm and detection system. The tea segment is engaged in tea growing and manufacturing. The printing segment is engaged in printing of books, periodicals, and publicity materials. Company s tea segment is the major contributor to its overall turnover followed by its electrical segment. In FY 2015, the tea segment contributed 53.67% to the company s overall turnover whereas its electrical segment contributed 33.70%. Considering the various actions initiated in FY 2015, the overall outlook for FY 2016 is expected to be positive in spite of continuing adverse climatic conditions for the tea division. With regard to the engineering and electrical divisions, FY 2016 will be one more challenging year as the manufacturing sector is still to pick up. Financials Revenue Gross Margin % Operating Income Operating Margin % Diluted EPS Book Value Per Share Operating Cash Flow Capital Expenditure Free Cash Flow Profitability verage Values unless stated Return on ssets % Return on Equity % sset Turnover Net Margin % Financial Leverage Financial Health except Debt/Equity (Ratio) Long Term Debt Total Equity Debt/Equity Working Capital Report as of 02-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

2 Page 2 of 5 Income Statement Total Revenue Cost of Revenue Gross Profit Operating Expense Operating Income Pre-tax Income Tax Provision Minority Interests Balance Sheet Stock Holders Equity Long Term Debt Total Non-Current Liabilities Payables Total Liabilities Net PPE Goodwill and other Intangible ssets Total Investments Total Non-current ssets Trading and Other Receivables Inventory Cash and Cash Equivalents Total ssets Cash Flows Depreciation and mortization Change in Working Capital Operating Cash Flow Capital Expenditure Investing Cash Flow Net Common Stock Issuance Net Issuance Payments of Debt Cash Dividends Paid Financing Cash Flow Changes in Cash Report as of 02-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

3 Page 3 of 5 Financial Performance ndrew Yule s total revenue grew by 2.9% to INR crores in FY It registered an operating loss of INR 0.22 crores, a decline of 101%, due to which operating margin declined by 592 basis points to -0.06% versus last year. The company s net income stood at INR crores in FY 2015, registering an increase of 31.2% year-over-year. Revenue Growth Key Risks The tea business is price sensitive to domestic and global demand. The scope of growth is very limited in tea plantation due to concerns involved in land availability. With the current economic scenario, many customers opt for the low cost, low technology equipment. This leads to an increase in demand for Chinese machineries, which could impact ndrew Yule s sales, volume and profitability. dditionally, poor management practice and infrastructural issues hamper growth of tea industry in India. Besides, lack of standardisation and quality with respect to packing and pesticide problems affect export of Indian teas. Gross Margin Competitors Tata Global Beverages Limited and Forbes & Company Ltd are the two competitors of the company. Tata Global Beverages Limited along with its subsidiaries is engaged in the trading, production and distribution of tea, coffee, and water. The company operates in three segments, which comprises of tea, which involves cultivation and manufacture of black tea and instant tea, tea buying/blending and sale in bulk or value-added form; coffee and other produce, which involves in growing of coffee, pepper and other plantation crops and conversion of coffee into value-added products. The company reported revenue of INR 7, crores for FY 2015, an increase of 3.3% year-over-year. Forbes & Company Ltd operates with a diversified portfolio comprising of shipping, automation, precision tools, energy systems, and consumer durables. The company operates in four segments, which comprises of Engineering, Shipping and Logistics Services, Real estate and Energy Solution. The company reported revenue of INR 3, crores for FY 2015, an increase of 15.6% year-over-year. Operating Margin Report as of 02-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

4 Page 4 of 5 Industry Overview India is the second largest tea producer, and accounts for approximately 31% of global production. Total tea production in India is around million kg. The global tea production is concentrated in India, China, Kenya, Indonesia, and Sri Lanka. Indian tea industry is highly fragmented with a large number of small companies. ssam, West Bengal, Tamil Nadu, and Kerala are the largest tea producing states, accounting for 75% of domestic tea production. Domestic tea supply is likely to remain stagnant in next few years due to negligible addition of land under tea cultivation. Tea drinking population and per capita consumption are factors affecting the domestic tea consumption. It is expected that the demand would increase by 2% to 3% per annum. Tea industry in India is highly labour intensive. It provides employment to more than one million workers (50% of the workforce comprises women). The market size of tea is estimated to be approximately 10,000 crores with a penetration of more than 90% in the domestic market. With an export of approximately 210 million kg of tea, India stands as the fourth largest exporter of tea in the world with China ranking at the first position. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Revenue Other Income Total Income Expenditure Interest PBDT Depreciation PBT Tax Net Profit Equity EPS CEPS OPM (%) NPM (%) *Standalone figures Return on Invested Capital (ROIC) Report as of 02-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

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