ORIENT PAPER 2023-24 Annual Report Analysis

Tue, 9 Jul

ORIENT 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.

ORIENT PAPER Income Statement Analysis

• Operating income during the year fell 11.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 62.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY24 as against 17.2% in FY23.
• Depreciation charges increased by 32.0% and finance costs increased by 177.9% YoY, respectively.
• Other income declined by 13.6% YoY.
• Net profit for the year declined by 93.7% YoY.
• Net profit margins during the year declined from 10.5% in FY23 to 0.7% in FY24.

ORIENT PAPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,430	8,319	-11.8%
Other income	Rs m	291	252	-13.6%
Total Revenues	Rs m	9,721	8,571	-11.8%
Gross profit	Rs m	1,620	611	-62.3%
Depreciation	Rs m	330	436	32.0%
Interest	Rs m	104	289	177.9%
Profit before tax	Rs m	1,477	138	-90.7%
Tax	Rs m	484	75	-84.4%
Profit after tax	Rs m	992	62	-93.7%
Gross profit margin	%	17.2	7.3
Effective tax rate	%	32.8	54.8
Net profit margin	%	10.5	0.7

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ORIENT PAPER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 51.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 27.1%.
• Current assets fell 4% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 22 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 10%.

ORIENT PAPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,155	16,187	6.8
Current Liabilities	Rs m	2,720	4,127	51.8
Long-term Debt	Rs m	1,468	1,070	-27.1
Total Liabilities	Rs m	22,042	24,258	10.1
Current assets	Rs m	2,085	2,007	-3.8
Fixed Assets	Rs m	19,955	22,218	11.3
Total Assets	Rs m	22,042	24,258	10.1

ORIENT PAPER Cash Flow Statement Analysis

• ORIENT PAPER's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 63.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -979 million, an improvement of 0.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -42 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -10 million from the Rs -11 million net cash flows seen during FY23.

ORIENT 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	618	1,010	63.6%
Cash Flow from Investing Activities	Rs m	-976	-979	-
Cash Flow from Financing Activities	Rs m	347	-42	-
Net Cash Flow	Rs m	-11	-10	-

Current Valuations for ORIENT PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.5, stands at 196.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 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	44.4	39.2
TTM Earnings per share	Rs	4.7	0.3
Diluted earnings per share	Rs	4.7	0.3
Price to Cash Flow	x	6.0	20.7
TTM P/E ratio	x	8.0	196.1
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	7,013	10,306
Dividends per share (Unadj.)	Rs	1.0	0.3

Ratio Analysis for ORIENT PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.8x 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 deteriorated and stood at 1.5x during FY24, from 15.2x 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 declined and down at 0.4% during FY24, from 6.5% 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 declined and down at 2.5% during FY24, from 9.5% 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 declined and down at 1.4% during FY24, from 5.0% 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	0.8	0.5
Debtors’ Days	Days	70	55
Interest coverage	x	15.2	1.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.0	1.4
Return on equity	%	6.5	0.4
Return on capital employed	%	9.5	2.5

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

ORIENT PAPER Share Price Performance

Over the last one year, ORIENT PAPER share price has moved up from Rs 42.0 to Rs 57.5, registering a gain of Rs 15.6 or around 37.1%.

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

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