VOITH PAPER 2023-24 Annual Report Analysis

Tue, 16 Jul

VOITH 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.

VOITH PAPER Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.1% in FY24 as against 25.0% in FY23.
• Depreciation charges increased by 15.3% increased by 0.0% YoY, respectively.
• Other income grew by 31.2% YoY.
• Net profit for the year grew by 14.3% YoY.
• Net profit margins during the year grew from 19.3% in FY23 to 20.2% in FY24.

VOITH PAPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,644	1,796	9.3%
Other income	Rs m	112	147	31.2%
Total Revenues	Rs m	1,756	1,943	10.7%
Gross profit	Rs m	411	451	9.6%
Depreciation	Rs m	95	110	15.3%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	428	488	14.0%
Tax	Rs m	110	125	13.2%
Profit after tax	Rs m	318	363	14.3%
Gross profit margin	%	25.0	25.1
Effective tax rate	%	25.8	25.6
Net profit margin	%	19.3	20.2

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VOITH PAPER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 468 million as compared to Rs 297 million in FY23, thereby witnessing an increase of 57.7%.
• Current assets rose 12% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 12%.

VOITH PAPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,153	3,484	10.5
Current Liabilities	Rs m	297	468	57.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,179	4,692	12.3
Current assets	Rs m	2,528	2,829	11.9
Fixed Assets	Rs m	1,651	1,863	12.8
Total Assets	Rs m	4,179	4,692	12.3

VOITH PAPER Cash Flow Statement Analysis

• VOITH PAPER's cash flow from operating activities (CFO) during FY24 stood at Rs 263 million, an improvement of 0.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -205 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -32 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 26 million from the Rs 18 million net cash flows seen during FY23.

VOITH 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	262	263	0.3%
Cash Flow from Investing Activities	Rs m	-217	-205	-
Cash Flow from Financing Activities	Rs m	-27	-32	-
Net Cash Flow	Rs m	18	26	43.1%

Current Valuations for VOITH PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.7, an improvement from the EPS of Rs 72.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,573.0, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 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	374.4	409.2
TTM Earnings per share	Rs	72.3	82.7
Diluted earnings per share	Rs	72.3	82.6
Price to Cash Flow	x	11.1	15.2
TTM P/E ratio	x	14.4	31.1
Price / Book Value ratio	x	1.6	2.1
Market Cap	Rs m	5,156	7,206
Dividends per share (Unadj.)	Rs	7.0	8.0

Ratio Analysis for VOITH PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.0x during FY24, from 8.5x 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 2,122.5x during FY24, from 0.0x 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 10.4% during FY24, from 10.1% 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 14.0% during FY24, from 13.6% 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 7.7% during FY24, from 7.6% 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	8.5	6.0
Debtors’ Days	Days	54	51
Interest coverage	x	0.0	2,122.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	7.7
Return on equity	%	10.1	10.4
Return on capital employed	%	13.6	14.0

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

VOITH PAPER Share Price Performance

Over the last one year, VOITH PAPER share price has moved up from Rs 1,590.0 to Rs 2,573.0, registering a gain of Rs 983.0 or around 61.8%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

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