KUANTUM PAPERS 2023-24 Annual Report Analysis

Wed, 7 Aug

KUANTUM PAPERS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

KUANTUM PAPERS Income Statement Analysis

• Operating income during the year fell 7.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY24 as against 24.2% in FY23.
• Depreciation charges increased by 6.2% and finance costs decreased by 39.1% YoY, respectively.
• Other income grew by 56.5% YoY.
• Net profit for the year grew by 35.0% YoY.
• Net profit margins during the year grew from 10.4% in FY23 to 15.2% in FY24.

KUANTUM PAPERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,096	12,113	-7.5%
Other income	Rs m	36	56	56.5%
Total Revenues	Rs m	13,132	12,169	-7.3%
Gross profit	Rs m	3,163	3,337	5.5%
Depreciation	Rs m	454	482	6.2%
Interest	Rs m	715	435	-39.1%
Profit before tax	Rs m	2,030	2,476	22.0%
Tax	Rs m	668	638	-4.5%
Profit after tax	Rs m	1,362	1,838	35.0%
Gross profit margin	%	24.2	27.6
Effective tax rate	%	32.9	25.8
Net profit margin	%	10.4	15.2

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KUANTUM PAPERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 44.6%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 16.5%.
• Current assets rose 44% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 12%.

KUANTUM PAPERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,668	11,238	16.2
Current Liabilities	Rs m	2,087	3,018	44.6
Long-term Debt	Rs m	3,678	3,070	-16.5
Total Liabilities	Rs m	16,895	18,878	11.7
Current assets	Rs m	2,132	3,066	43.8
Fixed Assets	Rs m	14,763	15,811	7.1
Total Assets	Rs m	16,895	18,878	11.7

KUANTUM PAPERS Cash Flow Statement Analysis

• KUANTUM PAPERS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 161.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -726 million, an improvement of 77% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 690 million from the Rs -20 million net cash flows seen during FY23.

KUANTUM PAPERS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	3,754	2,978	-20.7%
Cash Flow from Investing Activities	Rs m	-597	-1,561	-
Cash Flow from Financing Activities	Rs m	-3,178	-726	-
Net Cash Flow	Rs m	-20	690	-

Current Valuations for KUANTUM PAPERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an improvement from the EPS of Rs 15.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 149.0, stands at 8.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	150.1	138.8
TTM Earnings per share	Rs	15.6	21.1
Diluted earnings per share	Rs	15.6	21.1
Price to Cash Flow	x	5.8	6.5
TTM P/E ratio	x	7.8	8.3
Price / Book Value ratio	x	1.1	1.3
Market Cap	Rs m	10,598	15,101
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KUANTUM PAPERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.0x during FY23. 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 improved and stood at 6.7x during FY24, from 3.8x during FY23. 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 improved and stood at 16.4% during FY24, from 14.1% during FY24. 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 20.3% during FY24, from 20.6% during FY23. 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 12.0% during FY24, from 12.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	80	103
Interest coverage	x	3.8	6.7
Debt to equity ratio	x	0.4	0.3
Return on assets	%	12.3	12.0
Return on equity	%	14.1	16.4
Return on capital employed	%	20.6	20.3

To see how KUANTUM PAPERS has performed over the last 5 years, please visit here.

KUANTUM PAPERS Share Price Performance

Over the last one year, KUANTUM PAPERS share price has moved down from Rs 188.0 to Rs 149.0, registering a loss of Rs 39.1 or around 20.8%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for KUANTUM PAPERS and quarterly results for KUANTUM PAPERS)