BALKRISHNA PAPER MILLS 2021-22 Annual Report Analysis

Sat, 20 Aug

BALKRISHNA 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.

BALKRISHNA PAPER MILLS Income Statement Analysis

• Operating income during the year rose 91.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.3% in FY22 as against 7.3% in FY21.
• Depreciation charges decreased by 2.5% and finance costs decreased by 34.2% YoY, respectively.
• Other income declined by 20.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 20.4% in FY21 to 1.9% in FY22.

BALKRISHNA PAPER MILLS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,265	2,424	91.7%
Other income	Rs m	28	22	-20.7%
Total Revenues	Rs m	1,293	2,446	89.2%
Gross profit	Rs m	-92	80	NA
Depreciation	Rs m	63	62	-2.5%
Interest	Rs m	129	85	-34.2%
Profit before tax	Rs m	-257	-45	NA
Tax	Rs m	2	2	-4.2%
Profit after tax	Rs m	-258	-47	NA
Gross profit margin	%	-7.3	3.3
Effective tax rate	%	-0.7	-4.0
Net profit margin	%	-20.4	-1.9

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BALKRISHNA PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 899 million as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -40.8%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY21, a growth of 29.2%.
• Current assets fell 21% and stood at Rs 576 million, while fixed assets fell 8% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a fall of 13%.

BALKRISHNA PAPER MILLS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-938	-985	NA
Current Liabilities	Rs m	1,518	899	-40.8
Long-term Debt	Rs m	1,258	1,625	29.2
Total Liabilities	Rs m	2,145	1,870	-12.8
Current assets	Rs m	733	576	-21.4
Fixed Assets	Rs m	1,412	1,294	-8.4
Total Assets	Rs m	2,145	1,870	-12.8

BALKRISHNA PAPER MILLS Cash Flow Statement Analysis

• BALKRISHNA PAPER MILLS's cash flow from operating activities (CFO) during FY22 stood at Rs -545 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 185 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 48 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -312 million from the Rs 312 million net cash flows seen during FY21.

BALKRISHNA 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	236	-545	-
Cash Flow from Investing Activities	Rs m	-2	185	-
Cash Flow from Financing Activities	Rs m	78	48	-39.0%
Net Cash Flow	Rs m	312	-312	-

Current Valuations for BALKRISHNA PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.4, an improvement from the EPS of Rs -24.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 36.6, stands at -4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 27.3 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	117.7	225.7
TTM Earnings per share	Rs	-24.1	-4.4
Diluted earnings per share	Rs	-24.1	-4.4
Price to Cash Flow	x	-1.0	27.3
TTM P/E ratio	x	-0.8	-4.9
Price / Book Value ratio	x	-0.2	-0.4
Market Cap	Rs m	191	406
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BALKRISHNA PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY22, from 0.5x 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 improved and stood at 0.5x during FY22, from -1.0x 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 4.8% during FY22, from 27.6% 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 improved and stood at 6.2% during FY22, from -39.8% 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 improved and stood at 2.0% during FY22, from -6.0% 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	0.5	0.6
Debtors’ Days	Days	316	91
Interest coverage	x	-1.0	0.5
Debt to equity ratio	x	-1.3	-1.6
Return on assets	%	-6.0	2.0
Return on equity	%	27.6	4.8
Return on capital employed	%	-39.8	6.2

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

BALKRISHNA PAPER MILLS Share Price Performance

Over the last one year, BALKRISHNA PAPER MILLS share price has moved up from Rs 0.0 to Rs 36.6, registering a gain of Rs 36.6 or around 0.0%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of BALKRISHNA PAPER MILLS