GANGA PAPERS INDIA. 2022-23 Annual Report Analysis

Tue, 31 Oct

GANGA PAPERS INDIA. has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GANGA PAPERS INDIA. Income Statement Analysis

• Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.1% in FY23 as against 4.1% in FY22.
• Depreciation charges increased by 2.1% and finance costs increased by 5.7% YoY, respectively.
• Other income declined by 55.7% YoY.
• Net profit for the year declined by 39.2% YoY.
• Net profit margins during the year declined from 1.9% in FY22 to 1.1% in FY23.

GANGA PAPERS INDIA. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,823	2,979	5.6%
Other income	Rs m	4	2	-55.7%
Total Revenues	Rs m	2,827	2,981	5.5%
Gross profit	Rs m	116	92	-20.3%
Depreciation	Rs m	21	22	2.1%
Interest	Rs m	26	28	5.7%
Profit before tax	Rs m	72	44	-38.4%
Tax	Rs m	19	12	-35.9%
Profit after tax	Rs m	54	33	-39.2%
Gross profit margin	%	4.1	3.1
Effective tax rate	%	25.7	26.7
Net profit margin	%	1.9	1.1

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GANGA PAPERS INDIA. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 622 million as compared to Rs 556 million in FY22, thereby witnessing an increase of 11.8%.
• Long-term debt down at Rs 24 million as compared to Rs 131 million during FY22, a fall of 81.8%.
• Current assets rose 0% and stood at Rs 712 million, while fixed assets fell 4% and stood at Rs 228 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 940 million as against Rs 948 million during FY22, thereby witnessing a fall of 1%.

GANGA PAPERS INDIA. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	244	276	13.3
Current Liabilities	Rs m	556	622	11.8
Long-term Debt	Rs m	131	24	-81.8
Total Liabilities	Rs m	948	940	-0.9
Current assets	Rs m	711	712	0.1
Fixed Assets	Rs m	237	228	-3.9
Total Assets	Rs m	948	940	-0.9

GANGA PAPERS INDIA. Cash Flow Statement Analysis

• GANGA PAPERS INDIA.'s cash flow from operating activities (CFO) during FY23 stood at Rs -67 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 million, an improvement of 96% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -60 million from the Rs 20 million net cash flows seen during FY22.

GANGA PAPERS INDIA. Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	20	-67	-
Cash Flow from Investing Activities	Rs m	-3	-1	-
Cash Flow from Financing Activities	Rs m	4	8	96.1%
Net Cash Flow	Rs m	20	-60	-

Current Valuations for GANGA PAPERS INDIA.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.4, stands at 37.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	261.6	276.1
TTM Earnings per share	Rs	5.0	3.0
Diluted earnings per share	Rs	5.0	3.0
Price to Cash Flow	x	9.5	14.9
TTM P/E ratio	x	13.2	37.7
Price / Book Value ratio	x	3.2	2.9
Market Cap	Rs m	790	808
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GANGA PAPERS INDIA.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.3x during FY22. 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 2.6x during FY23, from 3.7x during FY22. 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 11.8% during FY23, from 22.0% during FY23. 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 24.1% during FY23, from 26.3% during FY22. 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 6.4% during FY23, from 8.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.1
Debtors’ Days	Days	422	464
Interest coverage	x	3.7	2.6
Debt to equity ratio	x	0.5	0.1
Return on assets	%	8.4	6.4
Return on equity	%	22.0	11.8
Return on capital employed	%	26.3	24.1

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

GANGA PAPERS INDIA. Share Price Performance

Over the last one year, GANGA PAPERS INDIA. share price has moved down from Rs 86.3 to Rs 78.4, registering a loss of Rs 7.9 or around 9.1%.

Overall, the S&P BSE SENSEX is up 7.0% over the year.

(To know more, check out historical annual results for GANGA PAPERS INDIA. and quarterly results for GANGA PAPERS INDIA.)