ORIENT PAPER 2022-23 Annual Report Analysis

Mon, 17 Jul

ORIENT PAPER has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ORIENT PAPER Income Statement Analysis

• Operating income during the year rose 61.0% 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 17.2% in FY23 as against 2.9% in FY22.
• Depreciation charges increased by 5.9% and finance costs increased by 108.7% YoY, respectively.
• Other income grew by 217.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.9% in FY22 to 10.5% in FY23.

ORIENT PAPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,857	9,430	61.0%
Other income	Rs m	92	291	217.9%
Total Revenues	Rs m	5,948	9,721	63.4%
Gross profit	Rs m	-169	1,620	NA
Depreciation	Rs m	312	330	5.9%
Interest	Rs m	50	104	108.7%
Profit before tax	Rs m	-439	1,477	NA
Tax	Rs m	-150	484	NA
Profit after tax	Rs m	-289	992	NA
Gross profit margin	%	-2.9	17.2
Effective tax rate	%	34.2	32.8
Net profit margin	%	-4.9	10.5

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ORIENT PAPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 3.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 675 million during FY22, a growth of 117.4%.
• Current assets rose 76% and stood at Rs 2 billion, while fixed assets fell 2% and stood at Rs 20 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 2%.

ORIENT PAPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,529	15,155	-2.4
Current Liabilities	Rs m	2,853	2,962	3.8
Long-term Debt	Rs m	675	1,468	117.4
Total Liabilities	Rs m	21,752	22,285	2.4
Current assets	Rs m	1,319	2,328	76.4
Fixed Assets	Rs m	20,433	19,955	-2.3
Total Assets	Rs m	21,752	22,285	2.4

ORIENT PAPER Cash Flow Statement Analysis

• ORIENT PAPER's cash flow from operating activities (CFO) during FY23 stood at Rs 618 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -976 million, an improvement of 12.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 347 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -11 million from the Rs -78 million net cash flows seen during FY22.

ORIENT PAPER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-245	618	-
Cash Flow from Investing Activities	Rs m	-871	-976	-
Cash Flow from Financing Activities	Rs m	1,037	347	-66.5%
Net Cash Flow	Rs m	-78	-11	-

Current Valuations for ORIENT PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an improvement from the EPS of Rs -1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.9, stands at 9.0 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	27.6	44.4
TTM Earnings per share	Rs	-1.4	4.7
Diluted earnings per share	Rs	-1.4	4.7
Price to Cash Flow	x	313.9	5.3
TTM P/E ratio	x	-25.3	9.0
Price / Book Value ratio	x	0.4	0.5
Market Cap	Rs m	6,456	7,013
Dividends per share (Unadj.)	Rs	0.3	1.0

Ratio Analysis for ORIENT PAPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.5x during FY22. 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 15.2x during FY23, from -7.8x during FY22. 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 6.5% during FY23, from -1.9% during FY23. 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 9.5% during FY23, from -2.4% during FY22. 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 4.9% during FY23, from -1.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.5	0.8
Debtors’ Days	Days	144	70
Interest coverage	x	-7.8	15.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-1.1	4.9
Return on equity	%	-1.9	6.5
Return on capital employed	%	-2.4	9.5

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 24.0 to Rs 41.9, registering a gain of Rs 18.0 or around 74.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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