ORIENT PAPER 2020-21 Annual Report Analysis

Wed, 31 Mar

ORIENT PAPER has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ORIENT PAPER Income Statement Analysis

• Operating income during the year fell 26.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 170.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 7.5% in FY21 as against 7.8% in FY20.
• Depreciation charges decreased by 2.3% and finance costs increased by 26.1% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year declined by 333.6% YoY.
• Net profit margins during the year declined from 3.3% in FY20 to 10.5% in FY21.

ORIENT PAPER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,066	4,434	-26.9%
Other income	Rs m	118	96	-18.5%
Total Revenues	Rs m	6,183	4,530	-26.7%
Gross profit	Rs m	475	-334	-170.2%
Depreciation	Rs m	332	324	-2.3%
Interest	Rs m	52	66	26.1%
Profit before tax	Rs m	209	-628	-399.8%
Tax	Rs m	10	-162	-1,708.8%
Profit after tax	Rs m	199	-465	-333.6%
Gross profit margin	%	7.8	-7.5
Effective tax rate	%	4.8	25.8
Net profit margin	%	3.3	-10.5

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ORIENT PAPER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -0.2%.
• Long-term debt stood at Rs 469 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets fell 8% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 18 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 15%.

ORIENT PAPER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	12,627	14,680	16.3
Current Liabilities	Rs m	2,109	2,104	-0.2
Long-term Debt	Rs m	0	469	0.0
Total Liabilities	Rs m	17,264	19,918	15.4
Current assets	Rs m	1,740	1,601	-8.0
Fixed Assets	Rs m	15,524	18,317	18.0
Total Assets	Rs m	17,264	19,918	15.4

ORIENT PAPER Cash Flow Statement Analysis

• ORIENT PAPER's cash flow from operating activities (CFO) during FY21 stood at Rs -200 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -67 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 351 million, an improvement of 264% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 84 million from the Rs 3 million net cash flows seen during FY20.

ORIENT PAPER Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	685	-200	-
Cash Flow from Investing Activities	Rs m	-467	-67	-
Cash Flow from Financing Activities	Rs m	-214	351	-
Net Cash Flow	Rs m	3	84	2,368.7%

Current Valuations for ORIENT PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.2, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.6, stands at -11.2 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 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -33.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	28.6	20.9
TTM Earnings per share	Rs	0.9	-2.2
Diluted earnings per share	Rs	0.9	-2.2
Price to Cash Flow	x	5.8	-33.9
TTM P/E ratio	x	15.5	-11.2
Price / Book Value ratio	x	0.4	0.3
Market Cap	Rs m	5,177	4,795
Dividends per share (Unadj.)	Rs	0.5	0.3

Ratio Analysis for ORIENT PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY21, from 0.8x during FY20. 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 -8.5x during FY21, from 5.0x during FY20. 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 -3.2% during FY21, from 1.6% during FY21. 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 -3.7% during FY21, from 2.1% during FY20. 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 -2.0% during FY21, from 1.5% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.8	0.8
Debtors’ Days	Days	164	195
Interest coverage	x	5.0	-8.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.5	-2.0
Return on equity	%	1.6	-3.2
Return on capital employed	%	2.1	-3.7

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 14.6 to Rs 24.6, registering a gain of Rs 10.0 or around 68.2%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of ORIENT PAPER