Shree Bhawani Paper Mills Limited - BSE

Shree Bhawani Paper Mills Limited
Quarterly Update – Jul – Sep 2012
06 February 2013
CMP: Rs.4.99
Industry: Paper
BSE group: B
Promoters
Girish Tandon and family, Om Prakash
Goenka and family
Key Data (as on 21 Jan’ 13)
BSE 502563
ISIN
INE688C01010
Face Value (Rs.) 10.0
Mkt Cap (Rs. mn) 173.8
Current P/E
negative
Current P/BV 6.8
52 week low-high 4.66-10.80
30 days avg daily trading
volume
1282
Equity capital (Rs mn) 348.1
Net worth (Rs mn) 25.3
Note - The current P/E is negative on account of
an overall negative EPS for the trailing twelve
months (TTM).
Shareholding Pattern (%)
30.6 33.2 33.2 33.2
Company business
Shree Bhawani Paper Mills Limited (‘SBPM’) is an Allahabad-based paper manufacturing
company. The company’s plant in Rae Bareli, with an installed capacity of 54000 metric
tonnes (MT), manufactures a wide range of paper products including packaging boards,
newsprints and writing & printing (W&P) paper. SBPM (established in 1979) is promoted
by Girish Tandon (and family). Pursuant to the preferential issue in June 2011, Om
Prakash Goenka (and family) were inducted into the promoter group and currently
exercise joint control over the company.
Recent Developments
In August 2012, Pakistan started expressing interest in importing paper and paper
products from India due to twin benefits of better quality and cost-effectiveness.
Currently paper is on the negative list and hence Pakistan is not permitted to import
paper and other related products. Should such a proposal materialize, Indian paper
manufacturers may be able to realize better sales through their exports.
Financials
Particulars (Rs
in mn)
Jul ‘12 to
Sep ‘12
Jul ‘11 to
Sep ‘11
% Change 1 Apr’12 to
Jun ‘12
% Change 2
Total income 294.8 264.8 11.3% 438.6 (32.8%)
Total
expenditure
365.3 233.5 56.4% 416.1 (12.2%)
EBIDTA (70.5) 31.3 - 22.5 -
EBIDTA margin negative 11.8% - 5.1% -
PBT (132.1) (22.1) - (36.3) -
PAT (132.1) (17.3) - (31.7) -
PAT margin negative negative - negative -
Cash accruals (116.4) (1.9) - (16.2) -
EPS -- -- - -- -
1 compared to corresponding quarter in the previous year
2
sequential comparisons
Source: Moneycontrol, Company
69.4 66.8 66.8 66.8
Sep-12 Jun-12 Mar-12 Dec-11
Others FII DII Promoter
Initiation Report:
Shree Bhawani Paper Mills Limited
Write to us at:
equity.research@outlook.com
Financial Performance
Rising input prices during the Jul-Sep quarter have impacted the bottom-line of SBPM.
While the revenues have grown by 11.2% to Rs.294.8 mn, the raw material prices have
surged by 174% to Rs.169 mn as compared to the same period last year. Even the power
costs have increased by 72% to Rs.84.9 mn. As a result, the EBIDTA has decreased
sharply and the company has reported a net loss of Rs.132.1 mn for the quarter.
Share Price Performance
16.00%
23.35%
6 Month 1 YR 3 YR
-13.80%
-44.56% -44.62%
BSE 500
Shree Bhawani
-37.39%
Initiative of the BSE Investors’ Protection Fund
Page 1 of 2

Financials
Shree Bhawani Paper Mills Limited
Quarterly Update – Jul – Sep 2012
P&L (Rs. mn) FY10 FY11 FY12 Balance Sheet (Rs. mn) FY10 FY11 FY12
Total income 1,280 1,251 970 Share Capital 164 164 348
EBITDA 112 91 (82) Reserves & Surplus (48) (103) (323)
Depreciation 59 61 62 Net worth 116 61 25
EBIT 53 30 (144) Borrowings 1,109 1,341 1,791
Interest 117 142 166 Other liabilities 231 298 292
PBT (65) (113) (310) Total liabilities 1,456 1,700 2,108
Tax (18) (8) (140) Net fixed assets 946 1,070 1,147
PAT (47) (105) (170) Other non-current assets - - 140
Loans and Advances 34 73 140
Valuation ratios FY10 FY11 FY12 Current Assets 476 557 680
P/E neg neg neg Total assets 1,456 1,700 2,108
P/BV 0.93 1.76 9.02
Cash Flow (Rs.mn) FY10 FY11 FY12
PBT (65) (113) (310)
CF from Operation 38 42 (270)
CF from Investment (54) (179) (137)
CF from Financing 10 147 424
Inc/(dec) Cash (5) 10 18
Closing Balance 8 18 36
Disclaimer
The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate
or complete and it should not be relied on as such. Our company shall not be in any way responsible for any loss or damage that may arise to any
person from any inadvertent error in the information contained in this report. This document is provided for assistance only and is not intended to
be and must not alone be taken as the basis for any investment decision. The user assumes the entire risk of any use made of this information.
Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation which may affect
their investment in the securities of companies referred to in this document (including the merits and risks involved). The discussions or views
expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information.
Initiative of the BSE Investors’ Protection Fund
Page 2 of 2