TAMIL NADU NEWSPRINT 2022-23 Annual Report Analysis

Fri, 31 Mar

TAMIL NADU NEWSPRINT 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.

TAMIL NADU NEWSPRINT Income Statement Analysis

• Operating income during the year rose 28.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 166.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.4% in FY23 as against 8.9% in FY22.
• Depreciation charges increased by 15.3% and finance costs increased by 16.1% YoY, respectively.
• Other income grew by 91.5% YoY.
• Net profit for the year grew by 2606.3% YoY.
• Net profit margins during the year grew from 0.4% in FY22 to 7.5% in FY23.

TAMIL NADU NEWSPRINT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	40,203	51,799	28.8%
Other income	Rs m	487	934	91.5%
Total Revenues	Rs m	40,690	52,733	29.6%
Gross profit	Rs m	3,584	9,547	166.4%
Depreciation	Rs m	2,287	2,636	15.3%
Interest	Rs m	1,564	1,817	16.1%
Profit before tax	Rs m	220	6,028	2,635.8%
Tax	Rs m	77	2,149	2,690.8%
Profit after tax	Rs m	143	3,879	2,606.3%
Gross profit margin	%	8.9	18.4
Effective tax rate	%	34.9	35.7
Net profit margin	%	0.4	7.5

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TAMIL NADU NEWSPRINT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 26 billion as compared to Rs 22 billion in FY22, thereby witnessing an increase of 18.8%.
• Long-term debt down at Rs 11 billion as compared to Rs 16 billion during FY22, a fall of 33.6%.
• Current assets rose 52% and stood at Rs 16 billion, while fixed assets fell 4% and stood at Rs 46 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 61 billion as against Rs 58 billion during FY22, thereby witnessing a growth of 6%.

TAMIL NADU NEWSPRINT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,891	19,441	22.3
Current Liabilities	Rs m	21,905	26,020	18.8
Long-term Debt	Rs m	16,037	10,646	-33.6
Total Liabilities	Rs m	57,743	61,231	6.0
Current assets	Rs m	10,318	15,643	51.6
Fixed Assets	Rs m	47,425	45,588	-3.9
Total Assets	Rs m	57,743	61,231	6.0

TAMIL NADU NEWSPRINT Cash Flow Statement Analysis

• TAMIL NADU NEWSPRINT's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 533 million from the Rs -23 million net cash flows seen during FY22.

TAMIL NADU NEWSPRINT 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	11,108	8,086	-27.2%
Cash Flow from Investing Activities	Rs m	-3,529	-1,036	-
Cash Flow from Financing Activities	Rs m	-7,601	-6,517	-
Net Cash Flow	Rs m	-23	533	-

Current Valuations for TAMIL NADU NEWSPRINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.0, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 218.3, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 2.3 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	580.9	748.4
TTM Earnings per share	Rs	2.1	56.0
Diluted earnings per share	Rs	2.1	56.0
Price to Cash Flow	x	4.8	2.3
TTM P/E ratio	x	81.2	3.9
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	10,350	15,296
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for TAMIL NADU NEWSPRINT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x 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 4.3x during FY23, from 1.1x 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 20.0% during FY23, from 0.9% 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 26.1% during FY23, from 5.6% 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 9.3% during FY23, from 3.0% 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	0.6
Debtors’ Days	Days	234	233
Interest coverage	x	1.1	4.3
Debt to equity ratio	x	1.0	0.5
Return on assets	%	3.0	9.3
Return on equity	%	0.9	20.0
Return on capital employed	%	5.6	26.1

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 168.1 to Rs 218.3, registering a gain of Rs 50.2 or around 29.8%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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