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ORIENT PAPER 2018-19 Annual Report Analysis
Sun, 31 Mar

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 9.1% 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 17.2% in FY18.
  • Depreciation charges increased by 11.7% and finance costs decreased by 32.1% YoY, respectively.
  • Other income grew by 200.1% YoY.
  • Net profit for the year grew by 106.2% YoY.
  • Net profit margins during the year grew from 7.6% in FY18 to 14.3% in FY19.

ORIENT PAPER Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 6,509 7,100 9.1%
Other income Rs m 112 337 200.1%
Total Revenues Rs m 6,621 7,438 12.3%
Gross profit Rs m 1,119 1,379 23.3%
Depreciation Rs m 283 316 11.7%
Interest Rs m 147 100 -32.1%
Profit before tax Rs m 801 1,301 62.3%
Tax Rs m 308 284 -7.8%
Profit after tax Rs m 493 1,017 106.2%
Gross profit margin % 17.2 19.4
Effective tax rate % 38.5 21.8
Net profit margin % 7.6 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ORIENT PAPER Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -17.5%.
  • Long-term debt down at Rs 101 million as compared to Rs 391 million during FY18, a fall of 74.1%.
  • Current assets rose 16% and stood at Rs 2 billion, while fixed assets rose 0% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 19 billion as against Rs 18 billion during FY18, thereby witnessing a growth of 1%.

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 2,135 1,762 -17.5
Long-term Debt Rs m 391 101 -74.1
Total Liabilities Rs m 18,417 18,667 1.4
 
Current assets Rs m 1,494 1,737 16.3
Fixed Assets Rs m 16,923 16,929 0.0
Total Assets Rs m 18,417 18,667 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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: Accord Fintech, 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 35.1, stands at 7.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.2 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 30.7 33.5
TTM Earnings per share Rs 2.3 4.8
Diluted earnings per share Rs 2.3 4.8
Price to Cash Flow x 10.8 6.2
TTM P/E ratio x 17.0 7.3
Price / Book Value ratio x 1.7 0.6
Market Cap Rs m 23,012 8,291
Dividends per share (Unadj.) Rs 1.0 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 6.5x 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 6.0% 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 207 155
Interest coverage x 6.5 14.0
Debt to equity ratio x 0.0 0.0
Return on assets % 3.5 6.0
Return on equity % 3.7 7.3
Return on capital employed % 7.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 39.5 to Rs 35.1, registering a loss of Rs 4.4 or around 11.1%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of ORIENT PAPER?

ORIENT PAPER currently trades at Rs 41.2 per share. You can check out the latest share price performance of ORIENT PAPER here...

What was the revenue of ORIENT PAPER in FY19? How does it compare to earlier years?

The revenues of ORIENT PAPER stood at Rs 7,438 m in FY19, which was up 12.3% compared to Rs 6,621 m reported in FY18.

ORIENT PAPER's revenue has fallen from Rs 15,265 m in FY10 to Rs 7,438 m in FY19.

Over the past 10 years, the revenue of ORIENT PAPER has grown at a CAGR of -7.7%.

What was the net profit of ORIENT PAPER in FY19? How does it compare to earlier years?

The net profit of ORIENT PAPER stood at Rs 1,017 m in FY19, which was up 106.2% compared to Rs 493 m reported in FY18.

This compares to a net profit of Rs 379 m in FY17 and a net profit of Rs 210 m in FY16.

Over the past 10 years, ORIENT PAPER net profit has grown at a CAGR of -4.8%.

What does the cash flow statement of ORIENT PAPER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ORIENT PAPER reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 988 m as compared to Rs 1,258 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs 7 m as compared to Rs 153 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -1,003 m as compared to Rs -1,458 m in FY18.

Here's the cash flow statement of ORIENT PAPER for the past 10 years.

(Rs m)FY10FY16FY17FY18FY19
From Operations2,6197613581,258988
From Investments-2,233-455-6741537
From Financial Activity-2568-72-1,458-1,003
Net Cashflow129314-490-46-8

What does the Key Ratio analysis of ORIENT PAPER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ORIENT PAPER reveals:

  • Operating profit margins witnessed a fall and down at 19.4% in FY19 as against 17.2% in FY18.
  • Net profit margins grew from 7.6% in FY18 to 14.3% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of ORIENT PAPER for the past 10 years.

 FY10FY16FY17FY18FY19
Operating Profit Margin (%)20.35.37.017.219.4
Net Profit Margin (%)10.41.32.57.614.3
Debt to Equity Ratio (x)0.70.40.00.00.0

Read: Latest Annual Report Analysis of ORIENT PAPER

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