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Seshasayee Paper and Boards (SPB) is engaged in the manufacture of printing and writing papers. The Company is also engaged in the manufacture of paper boards at its unit at Erode and Tirunelveli.
SPB produces a range of products, such as packing and wrapping papers, and specialty papers. SPB also has branded products, including SPrint, Colour Sprint, Index, SprintPlus and Success.
March 2019 quarter results
For the quarter, it registered 5% rise in sales to Rs 364.69 crore. OPM improved 230 basis points to 22.8% which saw OP rise 17% to Rs 83.27 crore. Other income grew 143% to Rs 11.37 crore and interest went down 30% to Rs 3.05 crore. After providing for depreciation (down 2% to Rs 6.87 crore), PBT went up 31% to Rs 84.72 crore.
EO gains were NIL against Rs 4.84 crore.
Tax grew 8% to Rs 22.46 crore (tax incidence went down from 32.1% to 26.5%), after which PAT went up 42% to Rs 62.26 crore.
FY 2019 results
In FY 2019, it registered 20% rise in sales to Rs 1325.24 crore. OPM improved 360 basis points to 22.3% which saw OP rise 43% to Rs 295.84 crore.
Other income grew 145% to Rs 23.06 crore and interest went down 3% to Rs 13.81 crore. After providing for depreciation (up 6% to Rs 33.78 crore), PBT went up 59% to Rs 271.31 crore.
EO gains were NIL against Rs 4.84 crore. Thus PBT after EO grew 55% to Rs 271.31 crore.
Tax grew 55% to Rs 81.31 crore (tax incidence went up from 29.9% to 30.0%), after which PAT went up 55% to Rs 190.00 crore.
Dividend and stock split
The Board of Directors has recommended payment of Dividend at Rs 20 per Equity Share of Rs 10 each for the year 2018-19.
The Board of Directors has approved sub-division of the Equity Shares of face value of Rs 10 each into face value of Rs 2 each.
Valuation
The stock trades at Rs 941.
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