TAMIL NADU NEWSPRINT 2017-18 Annual Report Analysis

Sat, 31 Mar

TAMIL NADU NEWSPRINT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

TAMIL NADU NEWSPRINT Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY18 as against 25.9% in FY17.
• Depreciation charges increased by 6.8% and finance costs decreased by 2.9% YoY, respectively.
• Other income declined by 9.1% YoY.
• Net profit for the year declined by 115.9% YoY.
• Net profit margins during the year declined from 9.4% in FY17 to 1.4% in FY18.

TAMIL NADU NEWSPRINT Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	28,134	30,716	9.2%
Other income	Rs m	370	336	-9.1%
Total Revenues	Rs m	28,503	31,052	8.9%
Gross profit	Rs m	7,290	4,049	-44.5%
Depreciation	Rs m	2,077	2,218	6.8%
Interest	Rs m	2,520	2,446	-2.9%
Profit before tax	Rs m	3,062	-280	-109.1%
Tax	Rs m	416	142	-66.0%
Profit after tax	Rs m	2,646	-422	-115.9%
Gross profit margin	%	25.9	13.2
Effective tax rate	%	13.6	-50.6
Net profit margin	%	9.4	-1.4

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TAMIL NADU NEWSPRINT Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 21 billion as compared to Rs 20 billion in FY17, thereby witnessing an increase of 8.8%.
• Long-term debt down at Rs 15 billion as compared to Rs 17 billion during FY17, a fall of 12.2%.
• Current assets fell 2% and stood at Rs 13 billion, while fixed assets fell 2% and stood at Rs 42 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 55 billion as against Rs 56 billion during FY17, thereby witnessing a fall of 2%.

TAMIL NADU NEWSPRINT Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	17,047	16,031	-6.0
Current Liabilities	Rs m	19,666	21,391	8.8
Long-term Debt	Rs m	16,521	14,503	-12.2
Total Liabilities	Rs m	56,344	55,247	-1.9
Current assets	Rs m	13,603	13,362	-1.8
Fixed Assets	Rs m	42,741	41,884	-2.0
Total Assets	Rs m	56,344	55,247	-1.9

TAMIL NADU NEWSPRINT Cash Flow Statement Analysis

• TAMIL NADU NEWSPRINT's cash flow from operating activities (CFO) during FY18 stood at Rs 8 billion, an improvement of 193.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 27.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 1 billion from the Rs -588 million net cash flows seen during FY17.

TAMIL NADU NEWSPRINT Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	2,840	8,327	193.2%
Cash Flow from Investing Activities	Rs m	-901	-1,148	-
Cash Flow from Financing Activities	Rs m	-2,526	-5,737	-
Net Cash Flow	Rs m	-588	1,442	-

Current Valuations for TAMIL NADU NEWSPRINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.1, an decline from the EPS of Rs 38.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 344.8, stands at -56.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	406.5	443.8
TTM Earnings per share	Rs	38.2	-6.1
Diluted earnings per share	Rs	38.2	-6.1
Price to Cash Flow	x	4.6	15.2
TTM P/E ratio	x	8.2	-56.6
Price / Book Value ratio	x	1.2	1.7
Market Cap	Rs m	21,125	27,274
Dividends per share (Unadj.)	Rs	7.5	5.0

Ratio Analysis for TAMIL NADU NEWSPRINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY18, from 0.7x during FY17. 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 0.9x during FY18, from 2.2x during FY17. 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 -2.6% during FY18, from 15.5% during FY18. 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 7.1% during FY18, from 16.6% during FY17. 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 3.7% during FY18, from 9.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	0.7	0.6
Debtors’ Days	Days	693	717
Interest coverage	x	2.2	0.9
Debt to equity ratio	x	1.0	0.9
Return on assets	%	9.2	3.7
Return on equity	%	15.5	-2.6
Return on capital employed	%	16.6	7.1

To see how TAMIL NADU NEWSPRINT has performed over the last 5 years, please visit here.

TAMIL NADU NEWSPRINT Share Price Performance

Over the last one year, TAMIL NADU NEWSPRINT share price has moved up from Rs 314.9 to Rs 344.8, registering a gain of Rs 29.9 or around 9.5%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for TAMIL NADU NEWSPRINT and quarterly results for TAMIL NADU NEWSPRINT)

Read: Latest Annual Report Analysis of TAMIL NADU NEWSPRINT