GENUS PAPER 2022-23 Annual Report Analysis

Thu, 21 Sep

GENUS 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.

GENUS PAPER Income Statement Analysis

• Operating income during the year rose 23.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY23 as against 8.9% in FY22.
• Depreciation charges increased by 73.8% and finance costs increased by 142.9% YoY, respectively.
• Other income grew by 101.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.4% in FY22 to 1.6% in FY23.

GENUS PAPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,824	7,217	23.9%
Other income	Rs m	20	40	101.0%
Total Revenues	Rs m	5,844	7,257	24.2%
Gross profit	Rs m	515	323	-37.4%
Depreciation	Rs m	157	273	73.8%
Interest	Rs m	84	204	142.9%
Profit before tax	Rs m	295	-113	NA
Tax	Rs m	37	4	-88.7%
Profit after tax	Rs m	258	-118	NA
Gross profit margin	%	8.9	4.5
Effective tax rate	%	12.5	-3.7
Net profit margin	%	4.4	-1.6

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GENUS PAPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 85.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 19.5%.
• Current assets rose 29% and stood at Rs 3 billion, while fixed assets rose 15% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 20%.

GENUS PAPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,963	4,815	-3.0
Current Liabilities	Rs m	1,393	2,584	85.6
Long-term Debt	Rs m	1,537	1,836	19.5
Total Liabilities	Rs m	7,547	9,034	19.7
Current assets	Rs m	2,337	3,025	29.4
Fixed Assets	Rs m	5,209	6,009	15.4
Total Assets	Rs m	7,547	9,034	19.7

GENUS PAPER Cash Flow Statement Analysis

• GENUS PAPER's cash flow from operating activities (CFO) during FY23 stood at Rs 131 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 492 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -480 million from the Rs 70 million net cash flows seen during FY22.

GENUS 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	531	131	-75.3%
Cash Flow from Investing Activities	Rs m	-1,848	-1,104	-
Cash Flow from Financing Activities	Rs m	1,387	492	-64.5%
Net Cash Flow	Rs m	70	-480	-

Current Valuations for GENUS PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.4, stands at -28.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 32.5 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	22.6	28.1
TTM Earnings per share	Rs	1.0	-0.5
Diluted earnings per share	Rs	1.0	-0.5
Price to Cash Flow	x	8.6	32.5
TTM P/E ratio	x	13.8	-28.2
Price / Book Value ratio	x	0.6	1.0
Market Cap	Rs m	2,960	5,033
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENUS PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.7x 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 deteriorated and stood at 0.4x during FY23, from 4.5x 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 declined and down at -2.4% during FY23, from 5.2% 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 declined and down at 1.4% during FY23, from 5.8% 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 declined and down at 1.0% during FY23, from 4.5% 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	1.7	1.2
Debtors’ Days	Days	382	413
Interest coverage	x	4.5	0.4
Debt to equity ratio	x	0.3	0.4
Return on assets	%	4.5	1.0
Return on equity	%	5.2	-2.4
Return on capital employed	%	5.8	1.4

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

GENUS PAPER Share Price Performance

Over the last one year, GENUS PAPER share price has moved up from Rs 16.0 to Rs 19.4, registering a gain of Rs 3.4 or around 21.3%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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