Ballarpur Industries Ltd. (BILT) has reported a flat financial performance for the first quarter ended September '01. The company's financial year ends in June. The consolidation process with the erstwhile Sinarmas Pulp & Paper (I) Ltd. is expected to be completed in the current financial year.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
Corporate India seems to be responding to the challenges arising from the slowdown. The marginally higher sales coupled with a control on costs has led to operating margins (OPM) increasing by 100 basis points. While writing & printing paper contributed to 71.8% of the net turnover excluding inter-division transfers, the division constituted 85% of the operating profits. The division has the highest OPM of 25%.
% of sales
% of O.P
Writing & Printing Paper
* For 1QFY02
The interest and depreciation costs eat a large part of the company's operating profits. Consequently, although operating profits rose by 5.7% pre-tax profits were marginally lower. Adjusting for other income, pre-tax and post-tax profits would decline by 2.3% and 2.8% respectively. Effective tax has increased marginally by 30 basis points to 30.9%.
Since start of the year the scrip has declined by 38.5% since start of the calendar year. The company operates in a commodity business and paper prices are likely to have weakened. However, BILT is trying to beat the cyclicality by adopting a branding strategy for their writing & printing paper. At Rs 39.7 the scrip is trading on a multiple of 4.1x 1QFY02 annualised earnings.
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