BALKRISHNA PAPER MILLS 2022-23 Annual Report Analysis

Mon, 17 Jul

BALKRISHNA 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.

BALKRISHNA PAPER MILLS Income Statement Analysis

• Operating income during the year fell 54.9% 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 32.1% in FY23 as against 3.3% in FY22.
• Depreciation charges decreased by 0.8% and finance costs increased by 29.4% YoY, respectively.
• Other income declined by 93.4% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 1.9% in FY22 to 47.5% in FY23.

BALKRISHNA PAPER MILLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,424	1,093	-54.9%
Other income	Rs m	22	1	-93.4%
Total Revenues	Rs m	2,446	1,094	-55.3%
Gross profit	Rs m	80	-351	NA
Depreciation	Rs m	62	61	-0.8%
Interest	Rs m	85	110	29.4%
Profit before tax	Rs m	-45	-520	NA
Tax	Rs m	2	-2	NA
Profit after tax	Rs m	-47	-519	NA
Gross profit margin	%	3.3	-32.1
Effective tax rate	%	-4.0	0.3
Net profit margin	%	-1.9	-47.5

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BALKRISHNA PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 859 million as compared to Rs 899 million in FY22, thereby witnessing an decrease of -4.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 1.1%.
• Current assets fell 76% and stood at Rs 136 million, while fixed assets fell 6% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 28%.

BALKRISHNA PAPER MILLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-985	-1,505	NA
Current Liabilities	Rs m	899	859	-4.5
Long-term Debt	Rs m	1,625	1,643	1.1
Total Liabilities	Rs m	1,870	1,348	-27.9
Current assets	Rs m	576	136	-76.4
Fixed Assets	Rs m	1,294	1,212	-6.3
Total Assets	Rs m	1,870	1,348	-27.9

BALKRISHNA PAPER MILLS Cash Flow Statement Analysis

• BALKRISHNA PAPER MILLS's cash flow from operating activities (CFO) during FY23 stood at Rs -196 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 21 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 178 million, an improvement of 273% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 million from the Rs -312 million net cash flows seen during FY22.

BALKRISHNA 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	-545	-196	-
Cash Flow from Investing Activities	Rs m	185	21	-88.5%
Cash Flow from Financing Activities	Rs m	48	178	272.6%
Net Cash Flow	Rs m	-312	4	-

Current Valuations for BALKRISHNA PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -48.3, an decline from the EPS of Rs -4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 26.5, stands at -0.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.2 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -1.0 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	225.7	101.8
TTM Earnings per share	Rs	-4.4	-48.3
Diluted earnings per share	Rs	-4.4	-48.3
Price to Cash Flow	x	35.0	-1.0
TTM P/E ratio	x	-11.1	-0.5
Price / Book Value ratio	x	-0.4	-0.3
Market Cap	Rs m	406	436
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BALKRISHNA PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x 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 -3.7x during FY23, from 0.5x 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 improved and stood at 34.5% during FY23, from 4.8% 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 -297.4% during FY23, from 6.2% 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 -30.3% during FY23, from 2.0% 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	0.2
Debtors’ Days	Days	91	30
Interest coverage	x	0.5	-3.7
Debt to equity ratio	x	-1.6	-1.1
Return on assets	%	2.0	-30.3
Return on equity	%	4.8	34.5
Return on capital employed	%	6.2	-297.4

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

BALKRISHNA PAPER MILLS Share Price Performance

Over the last one year, BALKRISHNA PAPER MILLS share price has moved down from Rs 43.1 to Rs 26.5, registering a loss of Rs 16.7 or around 38.6%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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