GENUS PAPER 2023-24 Annual Report Analysis

Wed, 11 Sep

GENUS 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.

GENUS PAPER Income Statement Analysis

• Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 82.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 4.5% in FY23.
• Depreciation charges decreased by 4.5% and finance costs increased by 60.5% YoY, respectively.
• Other income declined by 27.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.6% in FY23 to 0.5% in FY24.

GENUS PAPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,217	7,118	-1.4%
Other income	Rs m	40	29	-27.6%
Total Revenues	Rs m	7,257	7,148	-1.5%
Gross profit	Rs m	323	588	82.1%
Depreciation	Rs m	273	260	-4.5%
Interest	Rs m	204	327	60.5%
Profit before tax	Rs m	-113	29	NA
Tax	Rs m	4	-5	NA
Profit after tax	Rs m	-118	35	NA
Gross profit margin	%	4.5	8.3
Effective tax rate	%	-3.7	-18.5
Net profit margin	%	-1.6	0.5

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GENUS PAPER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 5.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 24.2%.
• Current assets fell 1% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 8%.

GENUS PAPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,815	4,880	1.4
Current Liabilities	Rs m	2,584	2,725	5.5
Long-term Debt	Rs m	1,836	2,280	24.2
Total Liabilities	Rs m	9,034	9,793	8.4
Current assets	Rs m	3,022	2,994	-0.9
Fixed Assets	Rs m	6,012	6,799	13.1
Total Assets	Rs m	9,034	9,793	8.4

GENUS PAPER Cash Flow Statement Analysis

• GENUS PAPER's cash flow from operating activities (CFO) during FY24 stood at Rs 735 million, an improvement of 460.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -995 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 273 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 12 million from the Rs -480 million net cash flows seen during FY23.

GENUS 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	131	735	460.6%
Cash Flow from Investing Activities	Rs m	-1,104	-995	-
Cash Flow from Financing Activities	Rs m	492	273	-44.5%
Net Cash Flow	Rs m	-480	12	-

Current Valuations for GENUS PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.9, stands at 90.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.9 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	28.1	27.7
TTM Earnings per share	Rs	-0.5	0.1
Diluted earnings per share	Rs	-0.5	0.1
Price to Cash Flow	x	21.6	17.9
TTM P/E ratio	x	-28.4	90.5
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	5,033	5,289
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENUS PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 1.1x during FY24, from 0.4x 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 0.7% during FY24, from -2.4% 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 5.0% during FY24, from 1.4% 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 3.7% during FY24, from 1.0% 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	1.2	1.1
Debtors’ Days	Days	413	290
Interest coverage	x	0.4	1.1
Debt to equity ratio	x	0.4	0.5
Return on assets	%	1.0	3.7
Return on equity	%	-2.4	0.7
Return on capital employed	%	1.4	5.0

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

GENUS PAPER Share Price Performance

Over the last one year, GENUS PAPER share price has moved up from Rs 19.8 to Rs 25.9, registering a gain of Rs 6.0 or around 30.5%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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