ORIENT PAPER 2018-19 Annual Report Analysis

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ORIENT PAPER 2018-19 Annual Report Analysis
Wed, 26 Jun

ORIENT PAPER has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ORIENT PAPER Income Statement Analysis

  • Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY19 as against 16.9% in FY18.
  • Depreciation charges increased by 11.7% and finance costs decreased by 32.2% YoY, respectively.
  • Other income grew by 200.2% YoY.
  • Net profit for the year grew by 106.2% YoY.
  • Net profit margins during the year grew from 7.3% in FY18 to 13.7% in FY19.

ORIENT PAPER Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 6,614 7,100 7.4%
Other income Rs m 112 337 200.2%
Total Revenues Rs m 6,726 7,438 10.6%
Gross profit Rs m 1,119 1,379 23.3%
Depreciation Rs m 283 316 11.7%
Interest Rs m 147 100 -32.2%
Profit before tax Rs m 801 1,301 62.4%
Tax Rs m 308 284 -7.8%
Profit after tax Rs m 493 1,017 106.2%
Gross profit margin % 16.9 19.4
Effective tax rate % 38.5 21.8
Net profit margin % 7.3 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ORIENT PAPER Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 1 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -21.9%.
  • Long-term debt down at Rs 102 million as compared to Rs 391 million during FY18, a fall of 74.1%.
  • Current assets rose 16% and stood at Rs 1 billion, while fixed assets fell 1% and stood at Rs 13 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 18 billion as against Rs 18 billion during FY18, thereby witnessing a fall of 0%.

ORIENT PAPER Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 13,177 13,851 5.1
 
Current Liabilities Rs m 1,909 1,492 -21.9
Long-term Debt Rs m 391 102 -74.1
Total Liabilities Rs m 18,094 18,052 -0.2
 
Current assets Rs m 1,260 1,467 16.4
Fixed Assets Rs m 13,631 13,471 -1.2
Total Assets Rs m 18,094 18,052 -0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ORIENT PAPER Cash Flow Statement Analysis

  • ORIENT PAPER's cash flow from operating activities (CFO) during FY19 stood at Rs 988 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 7 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion, an improvement of 31% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -8 million from the Rs -46 million net cash flows seen during FY18.

ORIENT PAPER Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,258 988 -21.5%
Cash Flow from Investing Activities Rs m 153 7 -95.6%
Cash Flow from Financing Activities Rs m -1,458 -1,003 -
Net Cash Flow Rs m -46 -8 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ORIENT PAPER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 2.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 28.7, stands at 5.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 31.2 33.5
TTM Earnings per share Rs 2.3 4.8
Diluted earnings per share Rs 2.4 5.0
Price to Cash Flow x 7.8 4.4
TTM P/E ratio x 6.0 5.8
Price / Book Value ratio x 1.7 0.6
Market Cap Rs m 6,090 5,880
Dividends per share (Unadj.) Rs 1.0 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ORIENT PAPER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY19, from 0.7x during FY18. 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 14.0x during FY19, from 6.4x during FY18. 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 7.3% during FY19, from 3.7% during FY19. 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 10.0% during FY19, from 7.0% during FY18. 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 6.2% during FY19, from 3.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.7 1.0
Debtors’ Days Days 20 15
Interest coverage x 6.4 14.0
Debt to equity ratio x 0.0 0.0
Return on assets % 3.5 6.2
Return on equity % 3.7 7.3
Return on capital employed % 7.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ORIENT PAPER Share Price Performance

Over the last one year, ORIENT PAPER share price has moved up from Rs 31.7 to Rs 28.7, registering a loss of Rs 3.0 or around 9.3%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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

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Related Views on News

ORIENT PAPER Announces Quarterly Results (1QFY20); Net Profit Down 57.0% (Quarterly Result Update)

Aug 21, 2019 | Updated on Aug 21, 2019

For the quarter ended June 2019, ORIENT PAPER has posted a net profit of Rs 80 m (down 57.0% YoY). Sales on the other hand came in at Rs 1 bn (up 10.5% YoY). Read on for a complete analysis of ORIENT PAPER's quarterly results.

ORIENT PAPER Announces Quarterly Results (4QFY19); Net Profit Up 105.4% (Quarterly Result Update)

May 7, 2019 | Updated on May 7, 2019

For the quarter ended March 2019, ORIENT PAPER has posted a net profit of Rs 324 m (up 105.4% YoY). Sales on the other hand came in at Rs 2 bn (up 9.1% YoY). Read on for a complete analysis of ORIENT PAPER's quarterly results.

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