Revenue and Operating Performance Trends
Net sales for T N Newsprint peaked in the fiscal year ending March 2023 at over ₹5,100 crores, before experiencing a decline to approximately ₹4,440 crores by March 2025. Other operating income has remained relatively stable, contributing around ₹40 to ₹60 crores annually. Consequently, total operating income followed a similar trajectory, reaching its highest point in 2023 before tapering off in subsequent years.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed a strong performance in 2023, exceeding ₹1,000 crores, but dropped significantly to around ₹428 crores by March 2025. Including other income, operating profit also declined from over ₹1,000 crores in 2023 to just above ₹525 crores in 2025. This decline is reflected in the operating profit margin, which fell from nearly 20% in 2023 to under 10% in 2025, indicating increased cost pressures or reduced pricing power.
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Profitability and Earnings Analysis
Profit before tax (PBT) has seen considerable volatility, with a notable loss in 2021 followed by a recovery to over ₹600 crores in 2023, before plummeting to a marginal ₹5 crores in 2025. The profit after tax (PAT) mirrors this trend, swinging from a loss of ₹65 crores in 2021 to a peak of nearly ₹388 crores in 2023, then sharply declining to under ₹4 crores in 2025. This volatility is also evident in earnings per share (EPS), which reached a high of 56.04 in 2023 but dropped to just 0.54 by 2025.
The PAT margin has fluctuated widely, from a negative 2.37% in 2021 to a peak of 7.58% in 2023, before falling to a negligible 0.08% in 2025. Such swings suggest challenges in maintaining consistent profitability amid changing market conditions and cost structures.
Balance Sheet and Debt Position
T N Newsprint's shareholder funds have steadily increased from around ₹1,590 crores in 2022 to over ₹2,080 crores in 2025, reflecting accumulated reserves and retained earnings. However, the company’s total debt has decreased from a high of approximately ₹2,710 crores in 2021 to about ₹1,590 crores in 2025, indicating efforts to deleverage its balance sheet.
Long-term borrowings have notably declined from nearly ₹1,950 crores in 2021 to ₹676 crores in 2025, while short-term borrowings have increased moderately. The net block of fixed assets has grown from ₹3,280 crores in 2022 to over ₹4,080 crores in 2025, signalling ongoing capital investment despite financial pressures.
Cash Flow and Liquidity Overview
Operating cash flow has remained positive throughout the period, peaking at over ₹1,100 crores in 2022 before moderating to ₹569 crores in 2025. Investing activities consistently show cash outflows, reflecting capital expenditure commitments, while financing activities have generally been cash negative, consistent with debt repayments and reduced borrowings.
Despite positive operating cash flows, the company’s closing cash and cash equivalents have fluctuated, ending in a negative position of ₹39 crores in 2025, which may indicate tight liquidity management or working capital challenges.
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Summary of Historical Performance
Over the past six years, T N Newsprint has experienced a cyclical performance pattern. Revenue growth was strong until 2023, followed by a decline in the latest fiscal year. Profitability has been inconsistent, with significant swings in operating and net margins. The company has made strides in reducing its debt burden, improving shareholder equity, and maintaining capital investments. However, the sharp drop in profits and EPS in the most recent year highlights ongoing challenges in sustaining earnings momentum.
Investors should weigh these factors carefully, considering both the company’s fundamental strengths and the volatility evident in its financial results. The balance sheet improvements and positive operating cash flows provide some reassurance, but the recent profit compression warrants close monitoring.
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