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ANDHRA PAPER 2017-18 Annual Report Analysis
Sat, 31 Mar

ANDHRA PAPER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ANDHRA PAPER Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 50.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY18 as against 12.7% in FY17.
  • Depreciation charges decreased by 6.0% and finance costs decreased by 22.3% YoY, respectively.
  • Other income declined by 11.2% YoY.
  • Net profit for the year grew by 156.4% YoY.
  • Net profit margins during the year grew from 2.9% in FY17 to 6.7% in FY18.

ANDHRA PAPER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 11,138 12,482 12.1%
Other income Rs m 60 53 -11.2%
Total Revenues Rs m 11,197 12,535 11.9%
Gross profit Rs m 1,419 2,131 50.2%
Depreciation Rs m 700 658 -6.0%
Interest Rs m 336 261 -22.3%
Profit before tax Rs m 442 1,265 185.9%
Tax Rs m 118 434 266.6%
Profit after tax Rs m 324 831 156.4%
Gross profit margin % 12.7 17.1
Effective tax rate % 26.8 34.3
Net profit margin % 2.9 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ANDHRA PAPER Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an decrease of -18.0%.
  • Long-term debt down at Rs 648 million as compared to Rs 1 billion during FY17, a fall of 55.1%.
  • Current assets fell 2% and stood at Rs 3 billion, while fixed assets fell 3% and stood at Rs 9 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 12 billion during FY17, thereby witnessing a fall of 3%.

ANDHRA PAPER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,779 5,640 18.0
 
Current Liabilities Rs m 4,391 3,600 -18.0
Long-term Debt Rs m 1,443 648 -55.1
Total Liabilities Rs m 11,911 11,607 -2.6
 
Current assets Rs m 2,926 2,879 -1.6
Fixed Assets Rs m 8,985 8,727 -2.9
Total Assets Rs m 11,911 11,607 -2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ANDHRA PAPER Cash Flow Statement Analysis

  • ANDHRA PAPER's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 25.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -313 million, an improvement of 6.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 92 million from the Rs -29 million net cash flows seen during FY17.

ANDHRA PAPER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 1,718 2,151 25.2%
Cash Flow from Investing Activities Rs m -295 -313 -
Cash Flow from Financing Activities Rs m -1,452 -1,746 -
Net Cash Flow Rs m -29 92 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ANDHRA PAPER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.9, an improvement from the EPS of Rs 8.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 290.5, stands at 13.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 280.1 313.9
TTM Earnings per share Rs 8.1 20.9
Diluted earnings per share Rs 8.1 20.9
Price to Cash Flow x 12.5 9.2
TTM P/E ratio x 41.0 13.9
Price / Book Value ratio x 2.6 2.4
Market Cap Rs m 12,468 13,721
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ANDHRA PAPER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.7x during FY17. 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 5.8x during FY18, from 2.3x during FY17. 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 14.7% during FY18, from 6.8% during FY18. 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 24.3% during FY18, from 12.5% during FY17. 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 9.4% during FY18, from 5.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.7 0.8
Debtors’ Days Days 221 203
Interest coverage x 2.3 5.8
Debt to equity ratio x 0.3 0.1
Return on assets % 5.5 9.4
Return on equity % 6.8 14.7
Return on capital employed % 12.5 24.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 322.4 to Rs 290.5, registering a loss of Rs 32.0 or around 9.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of ANDHRA PAPER?

ANDHRA PAPER currently trades at Rs 486.1 per share. You can check out the latest share price performance of ANDHRA PAPER here...

What was the revenue of ANDHRA PAPER in FY18? How does it compare to earlier years?

The revenues of ANDHRA PAPER stood at Rs 12,535 m in FY18, which was up 11.9% compared to Rs 11,197 m reported in FY17.

ANDHRA PAPER's revenue has grown from Rs 11,854 m in FY13 to Rs 12,535 m in FY18.

Over the past 6 years, the revenue of ANDHRA PAPER has grown at a CAGR of 1.1%.

What was the net profit of ANDHRA PAPER in FY18? How does it compare to earlier years?

The net profit of ANDHRA PAPER stood at Rs 831 m in FY18, which was up 156.4% compared to Rs 324 m reported in FY17.

This compares to a net profit of Rs 369 m in FY16 and a net loss of Rs -416 m in FY14.

Over the past 6 years, ANDHRA PAPER net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ANDHRA PAPER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ANDHRA PAPER reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 2,151 m as compared to Rs 1,718 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -313 m as compared to Rs -295 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -1,746 m as compared to Rs -1,452 m in FY17.

Here's the cash flow statement of ANDHRA PAPER for the past 6 years.

(Rs m)FY13FY14FY16FY17FY18
From Operations1,7412041,1131,7182,151
From Investments-899-886-380-295-313
From Financial Activity-897679-674-1,452-1,746
Net Cashflow-55-359-2992

What does the Key Ratio analysis of ANDHRA PAPER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ANDHRA PAPER reveals:

  • Operating profit margins witnessed a fall and down at 17.1% in FY18 as against 12.7% in FY17.
  • Net profit margins grew from 2.9% in FY17 to 6.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.3 in FY17.

Here's the ratio/financial analysis of ANDHRA PAPER for the past 6 years.

 FY13FY14FY16FY17FY18
Operating Profit Margin (%)8.66.014.812.717.1
Net Profit Margin (%)-2.0-4.13.32.96.7
Debt to Equity Ratio (x)0.70.90.70.30.1

Read: Latest Annual Report Analysis of ANDHRA PAPER

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