WEST COAST PAPER MILLS 2023-24 Annual Report Analysis

Fri, 19 Jul

WEST COAST PAPER MILLS 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.

WEST COAST PAPER MILLS Income Statement Analysis

• Operating income during the year fell 46.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 59.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.0% in FY24 as against 33.1% in FY23.
• Depreciation charges decreased by 42.4% and finance costs decreased by 48.4% YoY, respectively.
• Other income grew by 24.7% YoY.
• Net profit for the year declined by 56.2% YoY.
• Net profit margins during the year declined from 22.1% in FY23 to 18.2% in FY24.

WEST COAST PAPER MILLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	49,208	26,230	-46.7%
Other income	Rs m	777	968	24.7%
Total Revenues	Rs m	49,984	27,199	-45.6%
Gross profit	Rs m	16,267	6,556	-59.7%
Depreciation	Rs m	1,895	1,090	-42.4%
Interest	Rs m	371	191	-48.4%
Profit before tax	Rs m	14,778	6,243	-57.8%
Tax	Rs m	3,908	1,481	-62.1%
Profit after tax	Rs m	10,870	4,762	-56.2%
Gross profit margin	%	33.1	25.0
Effective tax rate	%	26.4	23.7
Net profit margin	%	22.1	18.2

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

WEST COAST PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -47.0%.
• Long-term debt stood at Rs 919 million as compared to Rs 696 million during FY23, a growth of 32.0%.
• Current assets fell 40% and stood at Rs 12 billion, while fixed assets fell 24% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 46 billion during FY23, thereby witnessing a fall of 31%.

WEST COAST PAPER MILLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,780	24,777	-3.9
Current Liabilities	Rs m	7,828	4,149	-47.0
Long-term Debt	Rs m	696	919	32.0
Total Liabilities	Rs m	45,914	31,734	-30.9
Current assets	Rs m	20,724	12,470	-39.8
Fixed Assets	Rs m	25,190	19,264	-23.5
Total Assets	Rs m	45,914	31,734	-30.9

WEST COAST PAPER MILLS Cash Flow Statement Analysis

• WEST COAST PAPER MILLS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -981 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -22 million from the Rs 99 million net cash flows seen during FY23.

WEST COAST PAPER MILLS 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	12,377	4,523	-63.5%
Cash Flow from Investing Activities	Rs m	-8,940	-3,564	-
Cash Flow from Financing Activities	Rs m	-3,338	-981	-
Net Cash Flow	Rs m	99	-22	-

Current Valuations for WEST COAST PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 72.1, an decline from the EPS of Rs 164.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 673.7, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	745.0	397.1
TTM Earnings per share	Rs	164.6	72.1
Diluted earnings per share	Rs	164.6	72.1
Price to Cash Flow	x	2.7	7.2
TTM P/E ratio	x	3.2	5.7
Price / Book Value ratio	x	1.2	1.7
Market Cap	Rs m	31,355	42,281
Dividends per share (Unadj.)	Rs	10.0	8.0

Ratio Analysis for WEST COAST PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY24, from 2.6x 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 33.6x during FY24, from 40.9x 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 19.2% during FY24, from 42.2% 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 25.0% during FY24, from 57.2% 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 15.6% during FY24, from 24.5% 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	2.6	3.0
Debtors’ Days	Days	246	271
Interest coverage	x	40.9	33.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	24.5	15.6
Return on equity	%	42.2	19.2
Return on capital employed	%	57.2	25.0

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

WEST COAST PAPER MILLS Share Price Performance

Over the last one year, WEST COAST PAPER MILLS share price has moved up from Rs 484.2 to Rs 673.7, registering a gain of Rs 189.5 or around 39.1%.

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

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