SESHASAYEE PAPER 2022-23 Annual Report Analysis

Thu, 25 May

SESHASAYEE 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.

SESHASAYEE PAPER Income Statement Analysis

• Operating income during the year rose 53.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 222.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.6% in FY23 as against 12.2% in FY22.
• Depreciation charges increased by 10.7% and finance costs increased by 11.1% YoY, respectively.
• Other income grew by 96.5% YoY.
• Net profit for the year grew by 279.0% YoY.
• Net profit margins during the year grew from 7.5% in FY22 to 18.6% in FY23.

SESHASAYEE PAPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,552	20,825	53.7%
Other income	Rs m	155	305	96.5%
Total Revenues	Rs m	13,707	21,131	54.2%
Gross profit	Rs m	1,657	5,341	222.3%
Depreciation	Rs m	409	453	10.7%
Interest	Rs m	29	32	11.1%
Profit before tax	Rs m	1,375	5,161	275.4%
Tax	Rs m	355	1,296	265.1%
Profit after tax	Rs m	1,020	3,865	279.0%
Gross profit margin	%	12.2	25.6
Effective tax rate	%	25.8	25.1
Net profit margin	%	7.5	18.6

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SESHASAYEE PAPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 15.2%.
• Current assets rose 44% and stood at Rs 9 billion, while fixed assets rose 9% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 22%.

SESHASAYEE PAPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,553	15,763	25.6
Current Liabilities	Rs m	2,457	2,831	15.2
Long-term Debt	Rs m	5	0	-100.0
Total Liabilities	Rs m	16,597	20,195	21.7
Current assets	Rs m	5,937	8,568	44.3
Fixed Assets	Rs m	10,660	11,628	9.1
Total Assets	Rs m	16,597	20,195	21.7

SESHASAYEE PAPER Cash Flow Statement Analysis

• SESHASAYEE PAPER's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 19.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 48.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -224 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -657 million from the Rs 26 million net cash flows seen during FY22.

SESHASAYEE 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	2,745	3,285	19.7%
Cash Flow from Investing Activities	Rs m	-2,499	-3,718	-
Cash Flow from Financing Activities	Rs m	-220	-224	-
Net Cash Flow	Rs m	26	-657	-

Current Valuations for SESHASAYEE PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.3, an improvement from the EPS of Rs 16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 265.1, stands at 4.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	214.9	330.2
TTM Earnings per share	Rs	16.2	61.3
Diluted earnings per share	Rs	16.2	61.3
Price to Cash Flow	x	7.7	3.7
TTM P/E ratio	x	10.8	4.3
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	11,477	16,051
Dividends per share (Unadj.)	Rs	2.5	6.0

Ratio Analysis for SESHASAYEE PAPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.4x 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 162.8x during FY23, from 48.9x 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 24.5% during FY23, from 8.1% 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 32.9% during FY23, from 11.2% 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 19.3% during FY23, from 6.3% 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	2.4	3.0
Debtors’ Days	Days	3	2
Interest coverage	x	48.9	162.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	19.3
Return on equity	%	8.1	24.5
Return on capital employed	%	11.2	32.9

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 180.5 to Rs 265.1, registering a gain of Rs 84.6 or around 46.9%.

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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