MALU PAPER MILLS 2022-23 Annual Report Analysis

Tue, 17 Oct

MALU PAPER MILLS 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.

MALU PAPER MILLS Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.4% in FY23 as against 1.7% in FY22.
• Depreciation charges decreased by 0.8% and finance costs increased by 9.6% YoY, respectively.
• Other income declined by 39.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.0% in FY22 to 4.5% in FY23.

MALU PAPER MILLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,119	2,339	10.4%
Other income	Rs m	11	7	-39.0%
Total Revenues	Rs m	2,130	2,345	10.1%
Gross profit	Rs m	36	-10	NA
Depreciation	Rs m	51	50	-0.8%
Interest	Rs m	79	87	9.6%
Profit before tax	Rs m	-83	-140	NA
Tax	Rs m	-20	-35	NA
Profit after tax	Rs m	-63	-105	NA
Gross profit margin	%	1.7	-0.4
Effective tax rate	%	24.4	25.3
Net profit margin	%	-3.0	-4.5

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MALU PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -0.9%.
• Long-term debt stood at Rs 131 million as compared to Rs 56 million during FY22, a growth of 131.6%.
• Current assets fell 6% and stood at Rs 715 million, while fixed assets fell 5% and stood at Rs 681 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1 billion during FY22, thereby witnessing a fall of 5%.

MALU PAPER MILLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	172	64	-63.1
Current Liabilities	Rs m	1,316	1,304	-0.9
Long-term Debt	Rs m	56	131	131.6
Total Liabilities	Rs m	1,477	1,397	-5.4
Current assets	Rs m	760	715	-5.9
Fixed Assets	Rs m	717	681	-5.0
Total Assets	Rs m	1,477	1,397	-5.4

MALU PAPER MILLS Cash Flow Statement Analysis

• MALU PAPER MILLS's cash flow from operating activities (CFO) during FY23 stood at Rs -92 million, an improvement of 308.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -13 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 106 million, an improvement of 331% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs 2 million net cash flows seen during FY22.

MALU PAPER MILLS 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	-22	-92	-
Cash Flow from Investing Activities	Rs m	0	-13	-
Cash Flow from Financing Activities	Rs m	25	106	330.5%
Net Cash Flow	Rs m	2	1	-46.5%

Current Valuations for MALU PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.1, an decline from the EPS of Rs -3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.3, stands at -6.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -11.3 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	124.2	137.1
TTM Earnings per share	Rs	-3.7	-6.1
Diluted earnings per share	Rs	-3.7	-6.1
Price to Cash Flow	x	-49.6	-11.3
TTM P/E ratio	x	-9.5	-6.5
Price / Book Value ratio	x	3.4	9.7
Market Cap	Rs m	581	615
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MALU PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY23, from 0.6x 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 -0.6x during FY23, from 0.0x 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 -164.3% during FY23, from -36.3% 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 -27.4% during FY23, from -1.7% 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 -1.3% during FY23, from 1.1% 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	0.6	0.5
Debtors’ Days	Days	508	353
Interest coverage	x	0.0	-0.6
Debt to equity ratio	x	0.3	2.1
Return on assets	%	1.1	-1.3
Return on equity	%	-36.3	-164.3
Return on capital employed	%	-1.7	-27.4

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

MALU PAPER MILLS Share Price Performance

Over the last one year, MALU PAPER MILLS share price has moved up from Rs 34.0 to Rs 39.3, registering a gain of Rs 5.3 or around 15.6%.

Overall, the S&P BSE SENSEX is up 16.1% over the year.

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