EMAMI PAPER MILLS 2023-24 Annual Report Analysis

Mon, 5 Aug

EMAMI PAPER MILLS 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.

EMAMI PAPER MILLS Income Statement Analysis

• Operating income during the year fell 16.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY24 as against 9.3% in FY23.
• Depreciation charges decreased by 10.8% and finance costs increased by 6.0% YoY, respectively.
• Other income grew by 35.0% YoY.
• Net profit for the year grew by 21.9% YoY.
• Net profit margins during the year grew from 2.9% in FY23 to 4.2% in FY24.

EMAMI PAPER MILLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,809	19,938	-16.3%
Other income	Rs m	25	33	35.0%
Total Revenues	Rs m	23,833	19,972	-16.2%
Gross profit	Rs m	2,217	2,363	6.6%
Depreciation	Rs m	676	603	-10.8%
Interest	Rs m	634	672	6.0%
Profit before tax	Rs m	931	1,122	20.5%
Tax	Rs m	239	279	16.4%
Profit after tax	Rs m	692	843	21.9%
Gross profit margin	%	9.3	11.9
Effective tax rate	%	25.7	24.8
Net profit margin	%	2.9	4.2

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EMAMI PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -35.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY23, a fall of 16.4%.
• Current assets fell 29% and stood at Rs 6 billion, while fixed assets fell 4% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 20 billion during FY23, thereby witnessing a fall of 13%.

EMAMI PAPER MILLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,987	7,741	10.8
Current Liabilities	Rs m	8,428	5,436	-35.5
Long-term Debt	Rs m	2,753	2,300	-16.4
Total Liabilities	Rs m	19,761	17,144	-13.2
Current assets	Rs m	7,759	5,544	-28.5
Fixed Assets	Rs m	12,002	11,496	-4.2
Total Assets	Rs m	19,761	17,144	-13.2

EMAMI PAPER MILLS Cash Flow Statement Analysis

• EMAMI PAPER MILLS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 982.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -102 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 50 million from the Rs 0 million net cash flows seen during FY23.

EMAMI PAPER MILLS 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	325	3,513	982.4%
Cash Flow from Investing Activities	Rs m	-235	-102	-
Cash Flow from Financing Activities	Rs m	-90	-3,362	-
Net Cash Flow	Rs m	0	50	-

Current Valuations for EMAMI PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.9, an improvement from the EPS of Rs 11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 133.1, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	393.5	329.6
TTM Earnings per share	Rs	11.4	13.9
Diluted earnings per share	Rs	11.4	13.9
Price to Cash Flow	x	5.0	5.4
TTM P/E ratio	x	9.8	9.6
Price / Book Value ratio	x	1.3	1.0
Market Cap	Rs m	9,025	7,871
Dividends per share (Unadj.)	Rs	1.6	1.6

Ratio Analysis for EMAMI PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 0.9x 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 2.7x during FY24, from 2.5x 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 10.9% during FY24, from 9.9% 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 improved and stood at 17.9% during FY24, from 16.1% 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 improved and stood at 8.8% during FY24, from 6.7% 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	0.9	1.0
Debtors’ Days	Days	4	5
Interest coverage	x	2.5	2.7
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.7	8.8
Return on equity	%	9.9	10.9
Return on capital employed	%	16.1	17.9

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

EMAMI PAPER MILLS Share Price Performance

Over the last one year, EMAMI PAPER MILLS share price has moved up from Rs 123.1 to Rs 133.1, registering a gain of Rs 10.0 or around 8.1%.

Overall, the S&P BSE SENSEX is up 18.6% over the year.

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