ANDHRA PAPER 2022-23 Annual Report Analysis

Tue, 1 Aug

ANDHRA PAPER has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ANDHRA PAPER Income Statement Analysis

• Operating income during the year rose 52.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 225.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.3% in FY23 as against 16.0% in FY22.
• Depreciation charges decreased by 12.2% and finance costs increased by 31.7% YoY, respectively.
• Other income grew by 15.9% YoY.
• Net profit for the year grew by 273.9% YoY.
• Net profit margins during the year grew from 10.1% in FY22 to 24.9% in FY23.

ANDHRA PAPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,802	20,977	52.0%
Other income	Rs m	449	520	15.9%
Total Revenues	Rs m	14,251	21,497	50.8%
Gross profit	Rs m	2,209	7,193	225.6%
Depreciation	Rs m	720	632	-12.2%
Interest	Rs m	54	72	31.7%
Profit before tax	Rs m	1,884	7,010	272.2%
Tax	Rs m	486	1,785	267.1%
Profit after tax	Rs m	1,397	5,225	273.9%
Gross profit margin	%	16.0	34.3
Effective tax rate	%	25.8	25.5
Net profit margin	%	10.1	24.9

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ANDHRA PAPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 10.0%.
• Long-term debt down at Rs 46 million as compared to Rs 79 million during FY22, a fall of 41.1%.
• Current assets rose 59% and stood at Rs 11 billion, while fixed assets rose 27% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 40%.

ANDHRA PAPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,941	15,822	44.6
Current Liabilities	Rs m	3,031	3,335	10.0
Long-term Debt	Rs m	79	46	-41.1
Total Liabilities	Rs m	17,259	24,174	40.1
Current assets	Rs m	7,238	11,487	58.7
Fixed Assets	Rs m	10,008	12,686	26.8
Total Assets	Rs m	17,259	24,174	40.1

ANDHRA PAPER Cash Flow Statement Analysis

• ANDHRA PAPER's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 164.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 175.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -413 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -32 million from the Rs 92 million net cash flows seen during FY22.

ANDHRA PAPER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,023	5,358	164.8%
Cash Flow from Investing Activities	Rs m	-1,813	-4,986	-
Cash Flow from Financing Activities	Rs m	-117	-413	-
Net Cash Flow	Rs m	92	-32	-

Current Valuations for ANDHRA PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 131.4, an improvement from the EPS of Rs 35.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 426.7, stands at 3.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 2.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	347.1	527.4
TTM Earnings per share	Rs	35.1	131.4
Diluted earnings per share	Rs	35.1	131.4
Price to Cash Flow	x	5.6	2.7
TTM P/E ratio	x	8.5	3.2
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	10,163	15,708
Dividends per share (Unadj.)	Rs	7.5	12.5

Ratio Analysis for ANDHRA PAPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY23, from 2.4x during FY22. 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 98.8x during FY23, from 35.6x during FY22. 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 33.0% during FY23, from 12.8% during FY23. 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 44.6% during FY23, from 17.6% during FY22. 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 21.9% during FY23, from 8.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.4	3.4
Debtors’ Days	Days	271	257
Interest coverage	x	35.6	98.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.4	21.9
Return on equity	%	12.8	33.0
Return on capital employed	%	17.6	44.6

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

ANDHRA PAPER Share Price Performance

Over the last one year, ANDHRA PAPER share price has moved up from Rs 384.2 to Rs 426.7, registering a gain of Rs 42.6 or around 11.1%.

Overall, the S&P BSE SENSEX is up 17.2% over the year.

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