EMAMI PAPER MILLS 2020-21 Annual Report Analysis

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EMAMI PAPER MILLS 2020-21 Annual Report Analysis
Sat, 30 Oct

EMAMI PAPER MILLS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

EMAMI PAPER MILLS Income Statement Analysis

  • Operating income during the year fell 19.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 37.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY21 as against 12.0% in FY20.
  • Depreciation charges decreased by 0.5% and finance costs decreased by 23.0% YoY, respectively.
  • Other income grew by 90.5% YoY.
  • Net profit for the year declined by 588.6% YoY.
  • Net profit margins during the year grew from 0.7% in FY20 to 4.1% in FY21.

EMAMI PAPER MILLS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,153 12,163 -19.7%
Other income Rs m 110 209 90.5%
Total Revenues Rs m 15,263 12,372 -18.9%
Gross profit Rs m 1,816 2,497 37.5%
Depreciation Rs m 725 721 -0.5%
Interest Rs m 1,245 958 -23.0%
Profit before tax Rs m -45 1,026 -2,370.4%
Tax Rs m 59 516 769.5%
Profit after tax Rs m -105 511 -588.6%
Gross profit margin % 12.0 20.5
Effective tax rate % -131.2 50.2
Net profit margin % -0.7 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

EMAMI PAPER MILLS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 7 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -12.6%.
  • Long-term debt down at Rs 4 billion as compared to Rs 8 billion during FY20, a fall of 48.1%.
  • Current assets fell 14% and stood at Rs 5 billion, while fixed assets fell 3% and stood at Rs 13 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 19 billion during FY20, thereby witnessing a fall of 7%.

EMAMI PAPER MILLS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,189 5,395 146.4
 
Current Liabilities Rs m 8,440 7,381 -12.6
Long-term Debt Rs m 7,803 4,051 -48.1
Total Liabilities Rs m 19,178 17,882 -6.8
 
Current assets Rs m 5,826 4,986 -14.4
Fixed Assets Rs m 13,352 12,897 -3.4
Total Assets Rs m 19,178 17,882 -6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EMAMI PAPER MILLS Cash Flow Statement Analysis

  • EMAMI PAPER MILLS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -73 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 26% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -72 million from the Rs 98 million net cash flows seen during FY20.

EMAMI PAPER MILLS Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 3,133 2,463 -21.4%
Cash Flow from Investing Activities Rs m 312 -73 -
Cash Flow from Financing Activities Rs m -3,347 -2,463 -
Net Cash Flow Rs m 98 -72 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EMAMI PAPER MILLS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an improvement from the EPS of Rs -1.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 151.4, stands at 10.1 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 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 250.5 201.0
TTM Earnings per share Rs -1.7 8.4
Diluted earnings per share Rs -1.7 8.4
Price to Cash Flow x 14.7 7.4
TTM P/E ratio x 10.1 10.1
Price / Book Value ratio x 3.1 1.1
Market Cap Rs m 9,157 9,157
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EMAMI PAPER MILLS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.7x during FY20. 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 2.1x during FY21, from 1.0x during FY20. 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 9.5% during FY21, from -4.8% during FY21. 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 21.0% during FY21, from 12.0% during FY20. 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 8.2% during FY21, from 5.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.7 0.7
Debtors’ Days Days 5 6
Interest coverage x 1.0 2.1
Debt to equity ratio x 3.6 0.8
Return on assets % 5.9 8.2
Return on equity % -4.8 9.5
Return on capital employed % 12.0 21.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EMAMI PAPER MILLS Share Price Performance

Over the last one year, EMAMI PAPER MILLS share price has moved up from Rs 66.3 to Rs 151.4, registering a gain of Rs 85.1 or around 128.3%.

Overall, the S&P BSE SENSEX is up 48.6% over the year.

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

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