PPRD by factica

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									                                                                                             Regd off: Regent Chambers, 13th Floor, Nariman Point, Mumbai - 21
PAPER PRODUCTS LIMITED                                                                       E-Mail:    sushil.agarwal@pplpack.com
                                                                                             Web site: www.pplpack.com
                                                                                             Telephone: (022) 2534 3691 Fax: (022) 2542 7050
PACKAGING                                                          MISCELLANEOUS             Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: K. C. Narang                                                         SEC: Sushil Kumar Agarwal                               AUD: BSR & Associates
Yr of Inc   B. Code       BL. Code    F.V.         Price        % ch 1-m       % ch 12-m       P/E       P/CF           Yield         Mkt cap              Vol.              ISIN
 1950   509820             PP:IN       2            57.3          24.0            41.0         16.9          7.2         3.1          3,592.1              40.8         INE275B01026
SHAREHOLDING                                                     FX Transaction   (CY08)                             ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters           :  5.0%               Exports (fob)           Rs m      1,259              (Rs)
Foreign collaborators      : 58.9%               Imports (cif)           Rs m      1,246
Indian inst/Mut Fund       :  8.2%               Fx inflow               Rs m      1,286       100
FIIs/GDR                   :  8.6%               Fx outflow              Rs m      1,295                                                                   DAILY
Free float                 : 19.3%               Net fx                  Rs m         -9
Shareholders               : 10,198
                                                                                                80                                                         100 DMA

                           No. of months                  12            12            12
                             Year ending            31/12/06      31/12/07      31/12/08        60
EQUITY SHARE DATA
High                                  Rs                 499              84            78
Low                                   Rs                 240              45            23      40
Sales per share                       Rs               399.7           84.9          97.6
Earnings per share                    Rs                31.8             4.5           3.4
Cash flow per share                   Rs                50.2             9.1           7.9
                                                                                                20
Dividends per share                   Rs                9.00           1.80          1.80
Dividend yield (eoy)                  %                  2.4            2.8            3.6
                                                                                                 0
Book value per share                  Rs               178.5           38.0          39.3
Shares outstanding (eoy)              m                12.54          62.69         62.69        Aug-06              Jun-07           Feb-08              Nov-08             Aug-09
Bonus/Rights/Conversions                                    -          FV2               -
Price / Sales ratio                   x                   0.9            0.8           0.5                               No. of months                12           12              12
Avg P/E ratio                         x                 11.6           14.2          14.9                                  Year ending          31/12/06     31/12/07        31/12/08
                                                                                              CASH FLOW
P/CF ratio (eoy)                      x                   7.4            7.1           6.4
Price / Book Value ratio              x                   2.1            1.7           1.3    From Operations                         Rs   m        632               305            650
Dividend payout                       %                 28.3           39.7          53.2     From Investments                        Rs   m       -694              -493           -176
Avg Mkt Cap                           Rs m             4,634          4,044         3,166     From Financial Activity                 Rs   m         78               207           -353
No. of employees                      `000                  1              1             1    Net Cashflow                            Rs   m         16                19            121
Total wages/salary                    Rs m               378            439           509
Avg. sales/employee                   Rs Th          3,598.0        3,652.0       4,253.6                                       INTERIM RESULTS
Avg. wages/employee                   Rs Th            271.4          301.3         353.7                                          3QCY08 4QCY08              1QCY09          2QCY09
Avg. net profit/employee              Rs Th            286.4          194.9         147.3     Net sales                   Rs    m     1,793   1,448             1,448           1,470
                                                                                              Gross profit                Rs    m       135     134               249             192
INCOME DATA                                                                                   Gross profit margin         %              7.5     9.3             17.2            13.1
Net Sales                             Rs     m         5,012          5,321         6,121     Net profit                  Rs    m         40      39              120              95
Other income                          Rs     m           101             98           103     Net profit margin           %             2.2      2.7               8.3             6.5
Total revenues                        Rs     m         5,113          5,419         6,224
Gross profit                          Rs     m           544            562           483                                           KEY DATA
Depreciation                          Rs     m           231            289           286     Parameters                          Unit         CY06                 CY07        CY08
Interest                              Rs     m              0             11            17    Laminates                           % of sales    87.6                 88.6        94.5
Profit before tax                     Rs     m           414            360           283     Cartons                             % of sales      6.0                  5.5         6.1
Minority Interest                     Rs     m              0              0             0    Average realisations                Rs/ton     158,076              166,583     192,200
Prior Period Items                    Rs     m              0              0             0    Advertisement                       % of sales      4.9                  5.3         5.1
Extraordinary Inc (Exp)               Rs     m           135            -22            14     Gross margins                       %             22.7                 21.2        22.0
Tax                                   Rs     m           150              54            85
                                                                                                                                     NOTES
Profit after tax                      Rs     m           399            284           212
Gross profit margin                   %                 10.9           10.6            7.9   Paper Products Limited (PPL) is India's leading manufacturer of primary consumer
Effective tax rate                    %                 36.2           15.0          30.0    packaging and labeling materials. The company has a history of over seven decades
                                                                                             in the packaging field and its product folio includes flexible packaging, labeling
Net profit margin                     %                   8.0            5.3           3.5
                                                                                             technologies and specialised cartons. PPL presently controls 40-45% of the high-end
BALANCE SHEET DATA                                                                           packaging market in India. In 1999, the company became a subsidiary of Huhtamaki,
                                                                                             a global leader in consumer packaging, who holds a 59% stake in the company.
Current assets                        Rs m             1,659         2,056         2,019     Headquartered in Finland, Huhtamaki is a market leader in several product
Current liabilities                   Rs m               971         1,200         1,266     categories and had a turnover of over euro 2.3 bn euros as of December 2008 (PPL
Net working cap to sales              %                 13.7          16.1          12.3     accounted for approximately 4.1% of parent's overall revenues).
Current ratio                         x                   1.7           1.7           1.6
Inventory Turnover                    Days                34            47             37    Paper Products witnessed a decline of 6% at the sales level during 1HCY09 lead by
Debtors Turnover                      Days                63            71            56     economic slowdown and price cuts taken by the company in line with the decline in
Net fixed assets                      Rs m             1,967         2,145         2,106     input prices. Lack of bargaining power makes it necessary for the company to take
Share capital                         Rs m               125           125           125     price changes. However, with FMCG sector witnessing strong growth, the demand
"Free" reserves                       Rs m             2,084         2,228         2,309     would pick up. The half year period saw an improvement of 2.3% YoY in the margins.
                                                                                             This was mainly on account of lower raw material costs, better product mix and cost
Net worth                             Rs m             2,239         2,383         2,462
                                                                                             efficiencies.
Long term debt                        Rs m               199           225           225
Total assets                          Rs m             3,631         4,339         4,294     The volumes are slated to grow more than 40% over the next three years led by the
Interest coverage                     x                  NM           33.7          17.6     growth in the FMCG sector, the shift of preference from rigid packaging to
Debt to equity ratio                  x                   0.1           0.1           0.1    convenience packaging and modern retailing. PPL is well positioned to benefit from
Sales to assets ratio                 x                   1.4           1.2           1.4    these developments. We believe that the company is not easily dispensable,
Return on assets                      %                 16.4          11.3            8.5    considering the importance of its packaging material for FMCG companies. Due to
Return on equity                      %                 17.8          11.9            8.6    low bargaining power, capacity constraints as well as price sensitiveness of markets
Return on capital                     %                 22.5          13.4          11.7     (PPL commands a 10% premium over its competitors), further growth can only come
Exports to sales                      %                 14.0          18.7          20.6     from expansions. However, with crude prices expected to remain firm going forward,
Imports to sales                      %                 21.0          25.0          20.4     it might continue to face margin pressure.
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