X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Paper Products: The extraordinary boost - Views on News from Equitymaster
MidCapSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Paper Products: The extraordinary boost
Apr 27, 2010

Paper Products Ltd. has announced its 1QCY10 results. The company has reported a 11% YoY and 81% YoY growth in sales and net profits respectively. Here is our analysis of the results.

Performance summary
  • Sales for the company increase by 11% YoY during the quarter.
  • Operating (EBITDA) margins for the company fell by 4.1% during the quarter to end at 12.5%.
  • The fall in operating margins is attributable to higher raw material costs as well as higher staff costs.
  • Net profit grew by 81% YoY during the quarter. This increase comes on the back of a forex gain during the quarter as well as extraordinary income registered from sale of the company’s Nagpur factory. When adjusted for forex gains as well as for extraordinary income, net profit is seen to fall by 61% YoY.

    Financials
    Rs (m) 1QCY09 1QCY10 Change
    Net Sales 1,447 1,607 11.0%
    Expenditure 1,208 1,406 16.5%
    Operating Profit (EBITDA) 240 201 -16.2%
    Operating Profit Margin (%) 16.6% 12.5%  
    Other Income 5 4 -27.1%
    Interest 6 1  
    Depreciation    75    82 8.6%
    Profit before Tax 163 122 -25.5%
    Extraordinary item      -   140  
    Tax    53    61 16.3%
    Profit after Tax 110 200 81.2%
    Net profit margin (%) 7.6% 12.4%  
    No. of Shares (m)    63    63  
    Diluted earnings per share* (x)     7.4  
    P/E ratio (x)     8.4  
    (*trailing 12 months)

    What has driven performance during 1QFY10?
    • Sales of the company improved during the quarter on the back of strong demand for packaging from FMCG companies.
      Cost break-up
      As a % of net sales 1QCY09 1QCY10
      Raw material 62.7% 67.7%
      Staff 7.7% 8.2%
      Other expenditure 12.4% 12.4%

    • Operating income fell by 16.2% during the quarter due to higher raw material and staff costs. Raw material costs increased by 5% as a percentage of sales while staff costs increased by 0.5% as a percentage of sales.

    • Net profit margin grew by 4.8% to 12.4% during the quarter. This improvement in margins is due to gain from sale of the company’s Nagpur factory as well as forex gain registered during the quarter.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

HUHTAMAKI PPL SHARE PRICE


Feb 16, 2018 (Close)

TRACK HUHTAMAKI PPL

  • Track your investment in HUHTAMAKI PPL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

HUHTAMAKI PPL - BILCARE LTD. COMPARISON

COMPARE HUHTAMAKI PPL WITH

MARKET STATS