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SESHASAYEE PAPER 2020-21 Annual Report Analysis
Wed, 31 Mar

SESHASAYEE 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.

SESHASAYEE PAPER Income Statement Analysis

  • Operating income during the year fell 34.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 59.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY21 as against 22.5% in FY20.
  • Depreciation charges increased by 7.5% and finance costs decreased by 57.8% YoY, respectively.
  • Other income declined by 17.4% YoY.
  • Net profit for the year declined by 42.6% YoY.
  • Net profit margins during the year declined from 14.6% in FY20 to 12.7% in FY21.

SESHASAYEE PAPER Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 11,843 7,821 -34.0%
Other income Rs m 223 184 -17.4%
Total Revenues Rs m 12,066 8,005 -33.7%
Gross profit Rs m 2,669 1,076 -59.7%
Depreciation Rs m 350 376 7.5%
Interest Rs m 69 29 -57.8%
Profit before tax Rs m 2,473 854 -65.5%
Tax Rs m 743 -139 -118.7%
Profit after tax Rs m 1,731 993 -42.6%
Gross profit margin % 22.5 13.8
Effective tax rate % 30.0 -16.2
Net profit margin % 14.6 12.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

SESHASAYEE 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 -6.8%.
  • Long-term debt down at Rs 35 million as compared to Rs 66 million during FY20, a fall of 47.4%.
  • Current assets fell 6% and stood at Rs 6 billion, while fixed assets rose 12% and stood at Rs 10 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 5%.

SESHASAYEE PAPER Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 10,193 11,427 12.1
 
Current Liabilities Rs m 2,334 2,175 -6.8
Long-term Debt Rs m 66 35 -47.4
Total Liabilities Rs m 14,481 15,171 4.8
 
Current assets Rs m 6,002 5,638 -6.1
Fixed Assets Rs m 8,479 9,533 12.4
Total Assets Rs m 14,481 15,171 4.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SESHASAYEE PAPER Cash Flow Statement Analysis

  • SESHASAYEE PAPER's cash flow from operating activities (CFO) during FY21 stood at Rs -71 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -817 million, an improvement of 212.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -306 million, an improvement of 75% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 149 million net cash flows seen during FY20.

SESHASAYEE 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 1,653 -71 -
Cash Flow from Investing Activities Rs m -261 -817 -
Cash Flow from Financing Activities Rs m -1,243 -306 -
Net Cash Flow Rs m 149 -1,194 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SESHASAYEE PAPER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.7, an decline from the EPS of Rs 27.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 161.3, stands at 10.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.6 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 187.8 124.0
TTM Earnings per share Rs 27.4 15.7
Diluted earnings per share Rs 27.4 15.7
Price to Cash Flow x 3.2 6.6
TTM P/E ratio x 3.8 10.2
Price / Book Value ratio x 3.4 0.8
Market Cap Rs m 34,594 9,036
Dividends per share (Unadj.) Rs 5.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SESHASAYEE PAPER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.6x 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 30.4x during FY21, from 36.9x 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 8.7% during FY21, from 17.0% 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 7.7% during FY21, from 24.8% 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 6.7% during FY21, from 12.4% 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 2.6 2.6
Debtors’ Days Days 2 4
Interest coverage x 36.9 30.4
Debt to equity ratio x 0.0 0.0
Return on assets % 12.4 6.7
Return on equity % 17.0 8.7
Return on capital employed % 24.8 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SESHASAYEE PAPER Share Price Performance

Over the last one year, SESHASAYEE PAPER share price has moved up from Rs 104.0 to Rs 161.3, registering a gain of Rs 57.3 or around 55.1%.

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

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

Annual Report FAQs

What is the current share price of SESHASAYEE PAPER?

SESHASAYEE PAPER currently trades at Rs 294.5 per share. You can check out the latest share price performance of SESHASAYEE PAPER here...

What was the revenue of SESHASAYEE PAPER in FY21? How does it compare to earlier years?

The revenues of SESHASAYEE PAPER stood at Rs 8,005 m in FY21, which was down -33.7% compared to Rs 12,066 m reported in FY20.

SESHASAYEE PAPER's revenue has fallen from Rs 10,568 m in FY17 to Rs 8,005 m in FY21.

Over the past 5 years, the revenue of SESHASAYEE PAPER has grown at a CAGR of -6.7%.

What was the net profit of SESHASAYEE PAPER in FY21? How does it compare to earlier years?

The net profit of SESHASAYEE PAPER stood at Rs 993 m in FY21, which was down -42.6% compared to Rs 1,731 m reported in FY20.

This compares to a net profit of Rs 1,897 m in FY19 and a net profit of Rs 1,224 m in FY18.

Over the past 5 years, SESHASAYEE PAPER net profit has grown at a CAGR of -6.1%.

What does the cash flow statement of SESHASAYEE 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 SESHASAYEE PAPER reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -71 m as compared to Rs 1,653 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -817 m as compared to Rs -261 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -306 m as compared to Rs -1,243 m in FY20.

Here's the cash flow statement of SESHASAYEE PAPER for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,0052,2512,7281,653-71
From Investments-363-504-161-261-817
From Financial Activity-1,545-511-890-1,243-306
Net Cashflow971,2371,677149-1,194

What does the Key Ratio analysis of SESHASAYEE 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 SESHASAYEE PAPER reveals:

  • Operating profit margins witnessed a fall and stood at 13.8% in FY21 as against 22.5% in FY20.
  • Net profit margins declined from 14.6% in FY20 to 12.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of SESHASAYEE PAPER for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)20.419.422.322.513.8
Net Profit Margin (%)12.211.214.314.612.7
Debt to Equity Ratio (x)0.20.10.10.00.0

Read: Latest Annual Report Analysis of SESHASAYEE PAPER

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