MALU PAPER MILLS 2021-22 Annual Report Analysis

Mon, 7 Nov

MALU PAPER MILLS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MALU PAPER MILLS Income Statement Analysis

• Operating income during the year rose 24.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.7% in FY22 as against 3.4% in FY21.
• Depreciation charges increased by 1.0% and finance costs increased by 1.6% YoY, respectively.
• Other income grew by 14.3% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 3.4% in FY21 to 3.0% in FY22.

MALU PAPER MILLS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,697	2,119	24.8%
Other income	Rs m	9	11	14.3%
Total Revenues	Rs m	1,707	2,130	24.8%
Gross profit	Rs m	57	36	-37.2%
Depreciation	Rs m	50	51	1.0%
Interest	Rs m	78	79	1.6%
Profit before tax	Rs m	-61	-83	NA
Tax	Rs m	-3	-20	NA
Profit after tax	Rs m	-58	-63	NA
Gross profit margin	%	3.4	1.7
Effective tax rate	%	5.6	24.4
Net profit margin	%	-3.4	-3.0

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MALU PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 10.6%.
• Long-term debt down at Rs 55 million as compared to Rs 66 million during FY21, a fall of 17.5%.
• Current assets rose 11% and stood at Rs 760 million, while fixed assets fell 6% and stood at Rs 717 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 2%.

MALU PAPER MILLS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	241	172	-28.3
Current Liabilities	Rs m	1,191	1,317	10.6
Long-term Debt	Rs m	66	55	-17.5
Total Liabilities	Rs m	1,451	1,477	1.8
Current assets	Rs m	684	760	11.2
Fixed Assets	Rs m	767	717	-6.5
Total Assets	Rs m	1,451	1,477	1.8

MALU PAPER MILLS Cash Flow Statement Analysis

• MALU PAPER MILLS's cash flow from operating activities (CFO) during FY22 stood at Rs -22 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 25 million, an improvement of 200% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 million from the Rs -3 million net cash flows seen during FY21.

MALU PAPER MILLS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	35	-22	-
Cash Flow from Investing Activities	Rs m	-14	0	-
Cash Flow from Financing Activities	Rs m	-25	25	-
Net Cash Flow	Rs m	-3	2	-

Current Valuations for MALU PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.7, an decline from the EPS of Rs -3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 35.0, stands at -19.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -48.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	99.5	124.2
TTM Earnings per share	Rs	-3.4	-3.7
Diluted earnings per share	Rs	-3.4	-3.7
Price to Cash Flow	x	-59.3	-48.6
TTM P/E ratio	x	-7.8	-19.0
Price / Book Value ratio	x	2.1	3.4
Market Cap	Rs m	493	581
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MALU PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY22, from 0.6x during FY21. 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 0.0x during FY22, from 0.2x during FY21. 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 -36.3% during FY22, from -24.0% during FY22. 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 -1.7% during FY22, from 5.4% during FY21. 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 1.1% during FY22, from 1.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.6	0.6
Debtors’ Days	Days	69,979,380	50,794,782
Interest coverage	x	0.2	0.0
Debt to equity ratio	x	0.3	0.3
Return on assets	%	1.4	1.1
Return on equity	%	-24.0	-36.3
Return on capital employed	%	5.4	-1.7

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

MALU PAPER MILLS Share Price Performance

Over the last one year, MALU PAPER MILLS share price has moved up from Rs 34.4 to Rs 35.0, registering a gain of Rs 0.7 or around 1.9%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

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

Read: Latest Annual Report Analysis of MALU PAPER MILLS