WEST COAST PAPER MILLS 2022-23 Annual Report Analysis

Mon, 24 Jul

WEST COAST PAPER MILLS 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.

WEST COAST PAPER MILLS Income Statement Analysis

• Operating income during the year fell 16.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.1% in FY23 as against 18.8% in FY22.
• Depreciation charges decreased by 43.8% and finance costs decreased by 53.1% YoY, respectively.
• Other income declined by 26.5% YoY.
• Net profit for the year grew by 69.7% YoY.
• Net profit margins during the year grew from 10.2% in FY22 to 20.9% in FY23.

WEST COAST PAPER MILLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	33,777	28,103	-16.8%
Other income	Rs m	621	457	-26.5%
Total Revenues	Rs m	34,398	28,560	-17.0%
Gross profit	Rs m	6,334	9,024	42.5%
Depreciation	Rs m	2,125	1,194	-43.8%
Interest	Rs m	626	293	-53.1%
Profit before tax	Rs m	4,204	7,994	90.1%
Tax	Rs m	745	2,122	184.8%
Profit after tax	Rs m	3,459	5,871	69.7%
Gross profit margin	%	18.8	32.1
Effective tax rate	%	17.7	26.6
Net profit margin	%	10.2	20.9

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WEST COAST PAPER MILLS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -48.8%.
• Long-term debt down at Rs 643 million as compared to Rs 2 billion during FY22, a fall of 72.7%.
• Current assets fell 29% and stood at Rs 9 billion, while fixed assets fell 4% and stood at Rs 20 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 34 billion during FY22, thereby witnessing a fall of 14%.

WEST COAST PAPER MILLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	16,834	20,477	21.6
Current Liabilities	Rs m	7,889	4,041	-48.8
Long-term Debt	Rs m	2,351	643	-72.7
Total Liabilities	Rs m	33,605	28,983	-13.8
Current assets	Rs m	12,872	9,170	-28.8
Fixed Assets	Rs m	20,734	19,813	-4.4
Total Assets	Rs m	33,605	28,983	-13.8

WEST COAST PAPER MILLS Cash Flow Statement Analysis

• WEST COAST PAPER MILLS's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 17.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 28.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 132 million from the Rs 68 million net cash flows seen during FY22.

WEST COAST PAPER MILLS 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	5,906	6,948	17.6%
Cash Flow from Investing Activities	Rs m	-2,890	-3,709	-
Cash Flow from Financing Activities	Rs m	-2,947	-3,106	-
Net Cash Flow	Rs m	68	132	94.4%

Current Valuations for WEST COAST PAPER MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 88.9, an improvement from the EPS of Rs 52.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 470.6, stands at 2.9 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 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	511.4	425.5
TTM Earnings per share	Rs	52.4	88.9
Diluted earnings per share	Rs	52.4	88.9
Price to Cash Flow	x	4.0	4.4
TTM P/E ratio	x	6.4	2.9
Price / Book Value ratio	x	1.0	1.5
Market Cap	Rs m	17,311	31,355
Dividends per share (Unadj.)	Rs	6.0	10.0

Ratio Analysis for WEST COAST PAPER MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.6x 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 28.2x during FY23, from 7.7x 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 28.7% during FY23, from 20.5% 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 39.2% during FY23, from 25.2% 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 21.3% during FY23, from 12.2% 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	1.6	2.3
Debtors’ Days	Days	262	240
Interest coverage	x	7.7	28.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.2	21.3
Return on equity	%	20.5	28.7
Return on capital employed	%	25.2	39.2

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

WEST COAST PAPER MILLS Share Price Performance

Over the last one year, WEST COAST PAPER MILLS share price has moved up from Rs 373.4 to Rs 470.6, registering a gain of Rs 97.2 or around 26.0%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for WEST COAST PAPER MILLS and quarterly results for WEST COAST PAPER MILLS)