TAMIL NADU NEWSPRINT 2020-21 Annual Report Analysis

Wed, 31 Mar

TAMIL NADU NEWSPRINT 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.

TAMIL NADU NEWSPRINT Income Statement Analysis

• Operating income during the year fell 20.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY21 as against 17.5% in FY20.
• Depreciation charges increased by 1.8% and finance costs decreased by 13.1% YoY, respectively.
• Other income grew by 35.7% YoY.
• Net profit for the year declined by 150.1% YoY.
• Net profit margins during the year declined from 3.7% in FY20 to 2.4% in FY21.

TAMIL NADU NEWSPRINT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,711	27,682	-20.3%
Other income	Rs m	375	509	35.7%
Total Revenues	Rs m	35,086	28,191	-19.7%
Gross profit	Rs m	6,068	2,790	-54.0%
Depreciation	Rs m	2,312	2,353	1.8%
Interest	Rs m	2,226	1,933	-13.1%
Profit before tax	Rs m	1,905	-987	-151.8%
Tax	Rs m	605	-336	-155.5%
Profit after tax	Rs m	1,300	-651	-150.1%
Gross profit margin	%	17.5	10.1
Effective tax rate	%	31.8	34.0
Net profit margin	%	3.7	-2.4

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TAMIL NADU NEWSPRINT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 21 billion as compared to Rs 23 billion in FY20, thereby witnessing an decrease of -8.4%.
• Long-term debt stood at Rs 19 billion as compared to Rs 12 billion during FY20, a growth of 60.7%.
• Current assets fell 14% and stood at Rs 14 billion, while fixed assets rose 16% and stood at Rs 46 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 60 billion as against Rs 56 billion during FY20, thereby witnessing a growth of 7%.

TAMIL NADU NEWSPRINT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,129	15,968	-6.8
Current Liabilities	Rs m	22,550	20,652	-8.4
Long-term Debt	Rs m	12,114	19,471	60.7
Total Liabilities	Rs m	55,766	59,833	7.3
Current assets	Rs m	16,065	13,871	-13.7
Fixed Assets	Rs m	39,701	45,962	15.8
Total Assets	Rs m	55,766	59,833	7.3

TAMIL NADU NEWSPRINT Cash Flow Statement Analysis

• TAMIL NADU NEWSPRINT's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 75.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -7 billion, an improvement of 229.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 1,031% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 743 million from the Rs -15 million net cash flows seen during FY20.

TAMIL NADU NEWSPRINT 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	2,414	4,232	75.3%
Cash Flow from Investing Activities	Rs m	-2,072	-6,817	-
Cash Flow from Financing Activities	Rs m	-358	3,327	-
Net Cash Flow	Rs m	-15	743	-

Current Valuations for TAMIL NADU NEWSPRINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.4, an decline from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 146.4, stands at -15.6 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	501.5	400.0
TTM Earnings per share	Rs	18.8	-9.4
Diluted earnings per share	Rs	18.8	-9.4
Price to Cash Flow	x	1.7	4.9
TTM P/E ratio	x	4.7	-15.6
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	10,679	8,305
Dividends per share (Unadj.)	Rs	6.0	3.0

Ratio Analysis for TAMIL NADU NEWSPRINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.7x 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 0.5x during FY21, from 1.9x 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 -4.1% during FY21, from 7.6% 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 2.7% during FY21, from 14.1% 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 2.1% during FY21, from 6.3% 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	0.7	0.7
Debtors’ Days	Days	555	498
Interest coverage	x	1.9	0.5
Debt to equity ratio	x	0.7	1.2
Return on assets	%	6.3	2.1
Return on equity	%	7.6	-4.1
Return on capital employed	%	14.1	2.7

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 88.9 to Rs 146.4, registering a gain of Rs 57.5 or around 64.6%.

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