ANDHRA PAPER 2023-24 Annual Report Analysis

Tue, 23 Jul

ANDHRA PAPER 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.

ANDHRA PAPER Income Statement Analysis

• Operating income during the year fell 14.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 40.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.9% in FY24 as against 34.3% in FY23.
• Depreciation charges increased by 4.2% and finance costs decreased by 38.4% YoY, respectively.
• Other income grew by 82.5% YoY.
• Net profit for the year declined by 35.0% YoY.
• Net profit margins during the year declined from 24.9% in FY23 to 18.9% in FY24.

ANDHRA PAPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,977	18,006	-14.2%
Other income	Rs m	520	950	82.5%
Total Revenues	Rs m	21,497	18,955	-11.8%
Gross profit	Rs m	7,193	4,310	-40.1%
Depreciation	Rs m	632	659	4.2%
Interest	Rs m	72	44	-38.4%
Profit before tax	Rs m	7,010	4,556	-35.0%
Tax	Rs m	1,785	1,159	-35.1%
Profit after tax	Rs m	5,225	3,397	-35.0%
Gross profit margin	%	34.3	23.9
Effective tax rate	%	25.5	25.4
Net profit margin	%	24.9	18.9

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ANDHRA PAPER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -44.2%.
• Long-term debt stood at Rs 473 million as compared to Rs 46 million during FY23, a growth of 921.8%.
• Current assets fell 18% and stood at Rs 13 billion, while fixed assets rose 98% and stood at Rs 17 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 23%.

ANDHRA PAPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,822	18,932	19.7
Current Liabilities	Rs m	7,505	4,187	-44.2
Long-term Debt	Rs m	46	473	921.8
Total Liabilities	Rs m	24,174	29,788	23.2
Current assets	Rs m	15,614	12,803	-18.0
Fixed Assets	Rs m	8,560	16,985	98.4
Total Assets	Rs m	24,174	29,788	23.2

ANDHRA PAPER Cash Flow Statement Analysis

• ANDHRA PAPER'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 -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 50 million, an improvement of 112% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -103 million from the Rs -32 million net cash flows seen during FY23.

ANDHRA PAPER 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	5,358	3,187	-40.5%
Cash Flow from Investing Activities	Rs m	-4,986	-3,341	-
Cash Flow from Financing Activities	Rs m	-413	50	-
Net Cash Flow	Rs m	-32	-103	-

Current Valuations for ANDHRA PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.4, an decline from the EPS of Rs 131.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 575.7, stands at 6.7 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 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	527.4	452.7
TTM Earnings per share	Rs	131.4	85.4
Diluted earnings per share	Rs	131.4	85.4
Price to Cash Flow	x	2.8	5.2
TTM P/E ratio	x	3.1	6.7
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	15,708	21,226
Dividends per share (Unadj.)	Rs	12.5	10.0

Ratio Analysis for ANDHRA PAPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 2.1x 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 104.2x during FY24, from 98.8x 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 declined and down at 17.9% during FY24, from 33.0% 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 23.7% during FY24, from 44.6% 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 11.6% during FY24, from 21.9% 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	2.1	3.1
Debtors’ Days	Days	257	124
Interest coverage	x	98.8	104.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.9	11.6
Return on equity	%	33.0	17.9
Return on capital employed	%	44.6	23.7

To see how ANDHRA PAPER has performed over the last 5 years, please visit here.

ANDHRA PAPER Share Price Performance

Over the last one year, ANDHRA PAPER share price has moved up from Rs 425.0 to Rs 575.7, registering a gain of Rs 150.7 or around 35.5%.

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for ANDHRA PAPER and quarterly results for ANDHRA PAPER)