TAMIL NADU NEWSPRINT 2023-24 Annual Report Analysis

Thu, 12 Sep

TAMIL NADU NEWSPRINT 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.

TAMIL NADU NEWSPRINT Income Statement Analysis

• Operating income during the year fell 9.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY24 as against 18.4% in FY23.
• Depreciation charges increased by 10.2% and finance costs increased by 23.0% YoY, respectively.
• Other income grew by 12.8% YoY.
• Net profit for the year declined by 46.3% YoY.
• Net profit margins during the year declined from 7.5% in FY23 to 4.4% in FY24.

TAMIL NADU NEWSPRINT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	51,799	46,928	-9.4%
Other income	Rs m	934	1,053	12.8%
Total Revenues	Rs m	52,733	47,982	-9.0%
Gross profit	Rs m	9,547	7,334	-23.2%
Depreciation	Rs m	2,636	2,905	10.2%
Interest	Rs m	1,817	2,235	23.0%
Profit before tax	Rs m	6,028	3,248	-46.1%
Tax	Rs m	2,149	1,166	-45.7%
Profit after tax	Rs m	3,879	2,082	-46.3%
Gross profit margin	%	18.4	15.6
Effective tax rate	%	35.7	35.9
Net profit margin	%	7.5	4.4

Don't Miss: Key Information for Long-term Investors

TAMIL NADU NEWSPRINT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 25 billion as compared to Rs 26 billion in FY23, thereby witnessing an decrease of -5.1%.
• Long-term debt down at Rs 9 billion as compared to Rs 11 billion during FY23, a fall of 17.3%.
• Current assets rose 5% and stood at Rs 16 billion, while fixed assets fell 3% and stood at Rs 44 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 60 billion as against Rs 61 billion during FY23, thereby witnessing a fall of 1%.

TAMIL NADU NEWSPRINT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,441	20,897	7.5
Current Liabilities	Rs m	26,020	24,688	-5.1
Long-term Debt	Rs m	10,646	8,804	-17.3
Total Liabilities	Rs m	61,231	60,449	-1.3
Current assets	Rs m	15,643	16,432	5.0
Fixed Assets	Rs m	45,588	43,999	-3.5
Total Assets	Rs m	61,231	60,449	-1.3

TAMIL NADU NEWSPRINT Cash Flow Statement Analysis

• TAMIL NADU NEWSPRINT's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 34.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 59% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 137 million from the Rs 533 million net cash flows seen during FY23.

TAMIL NADU NEWSPRINT 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	8,061	4,193	-48.0%
Cash Flow from Investing Activities	Rs m	-1,011	-1,360	-
Cash Flow from Financing Activities	Rs m	-6,517	-2,696	-
Net Cash Flow	Rs m	533	137	-74.2%

Current Valuations for TAMIL NADU NEWSPRINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.1, an decline from the EPS of Rs 56.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 221.8, stands at 15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	748.4	678.1
TTM Earnings per share	Rs	56.0	30.1
Diluted earnings per share	Rs	56.0	30.1
Price to Cash Flow	x	2.3	3.7
TTM P/E ratio	x	3.9	15.1
Price / Book Value ratio	x	0.8	0.9
Market Cap	Rs m	15,296	18,443
Dividends per share (Unadj.)	Rs	5.0	4.0

Ratio Analysis for TAMIL NADU NEWSPRINT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY24, from 0.6x 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 2.5x during FY24, from 4.3x 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 10.0% during FY24, from 20.0% 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 18.5% during FY24, from 26.1% 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 7.1% during FY24, from 9.3% 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	0.6	0.7
Debtors’ Days	Days	233	350
Interest coverage	x	4.3	2.5
Debt to equity ratio	x	0.5	0.4
Return on assets	%	9.3	7.1
Return on equity	%	20.0	10.0
Return on capital employed	%	26.1	18.5

To see how TAMIL NADU NEWSPRINT has performed over the last 5 years, please visit here.

TAMIL NADU NEWSPRINT Share Price Performance

Over the last one year, TAMIL NADU NEWSPRINT share price has moved down from Rs 256.0 to Rs 221.8, registering a loss of Rs 34.3 or around 13.4%.

Overall, the S&P BSE SENSEX is up 21.6% over the year.

(To know more, check out historical annual results for TAMIL NADU NEWSPRINT and quarterly results for TAMIL NADU NEWSPRINT)