Emami Paper

Emami Paper was pummeled into pulp after it reported its dismal performance for Q4FY17. Net profit for the quarter fell 94% (YoY) to Rs.1.4 crore v/s Rs.23 crore in previous Q4. Two reasons for this; firstly, the company’s costs have burgeoned – total expenses have risen 122% and this was led by a 133% jump in raw material costs. 68% rise in employee costs and 3 times surge in power & fuel expenses. Interest costs too rose from Rs.6 crore to Rs.16 crore. Second reason – in Q4FY16, the company had a tax write back to the tune of Rs.19.50 crore and this inflated its bottomline. But then, in Q4FY17, the company reported an other income of Rs.14 crore, which more or less brings on an even keel.

The company ended Fy17 with a net profit at Rs.26 crore v/s Rs.28 crore in FY16. Equity stands at Rs.12.10 and EPS of the year is at Rs.3.31 (FV of Rs.2). Interest outgo for the entire fiscal was at rs.57 crore and borrowings stood at Rs.1012 crore.