GENUS PAPER AND BOARDS - RESULTS FOR Q4 - FY 18 PRESENTATION

GENUS PAPER AND BOARDS

RESULTS FOR Q4 FY 18 PRESENTATION

GENUS PAPER AND BOARDS  (1) is engaged in the manufacture of Kraft Paper,(2) is the preferred supplier to corrugated Box manufacturers (3)  is Reusing and Redefining waste Paper (4) is the preferred Vendor for Large FMCG Clients.

It  was incorporated in 1996 as DSM Papers Limited, then in 2002, name was changed as Kailash Paper Products Limited , in 2006, Name was changed to Genus Paper Products Limited and finally, in 2013, Genus Paper and Products Limited was formed.

In 2015, capacity was enhanced from 1,00,000 to 1,40,000 MTPA. In 2018, Company leased Manufacturing plant in Kashipur with a capacity of 75,000 MTPA.

MANAGEMENT

Mr.Kailash Chandra Agarwal is the MD,

Mr.Sanjay Agarwal is the Chief Financial Officer.

PRODUCTS :

1.KRAFT PAPER –catering to Diversified Industry needs

2. Mild steel Ingor – less than 5% of total Business

MANUFACTURING FACILITIES :

owned 1,40,000 MTPA at Moradabad in UP + leased 75000 MTPA at Khasipur in Uttarakhand = Total 2,15,000 MTPA

A Brownfield expansion of 50000 MTPA is planned at Moradabad UP.

PLANNED EXPANSIONS :

Genus has entered into Non-Binding MOUs as follows :

1. With Government of Maharashtra : Rs 1,050 cr for Setting up a Kraft Paper Manufacturing Plant;

2.  Government of Uttar Pradesh : Rs 600 cr for Expansion of current Manufacturing facility

Waste paper is available in abundance from internal as well as International sources. Likewise other raw material like Agro residue and wood is also available in abundance.

FUTURE DEMAND for Kraft Paper outpaces supply

There is strong presence of FMCG and consumer durable goods companies in India

TECHNOLOGY ADVANTAGE

Among the few Manufacturer to have Triple wire Machine

Sweden machine to produce high quality finished paper by using low cost waste paper

Pulp Mill is equipped to process imported mixed waste

Forbes Marshall Steam & Condensate system for steam (power) saving and to improve efficiency of Drying Cylinder

Plant is equipped with state of art Quality Control System

COMPETITIVE ADVANTAGE

One of Largest Capacities in Northern India

11 MW Co-generation Captive Power Plant

Licensed borewell for sufficient Water Supply for our requirement

Zero Liquid Discharge plant with full fledged waste water treatment plant

Strong Relation with Key FMCG Customers

Growth Drivers

Exponential Growth in Demand

Shift to Value Added Products

Location Advantage

Recycle and Reuse of waste Paper

OPPORTUNITY FOR PAPER INDUSTRY

Domestic Demand for Paper is expected to grow at a strong pace

Packaging paper and Kraft paper to outpace the Industry with a CAGR of 8.8% and 9% respectively.

Right now, per capita consumption of paper in India is very low at 13 kg compared to 229 kg in USA and 74 KG in China and 57 KG for world as a whole.

Waste paper is 53% imports and 47% indigenous sources at present.

90% demand for Kraft paper is from corrugated Box Manufacturers

Genus is still looking for other organic and inorganic means of expansion

PRIORITY TO END CUSTOMER IS KEY

Corrugated Box Manufacturing industry is estimated at

 Rs 18,000 crore of which 35% is located at North India

Of all Kraft paper Mills in North India, only 5% have capacities more than 100,000 TPA to cater to demand of large FMCG companies

Genus Paper & Board Ltd has capacity of 215,000 MTPA.

Our quality products approved by all maior FMCG Clients

Incremental capacity of leased facility already has demand visibility in Place

There is a concentrated presence of FMCG companies in the northern belt of India

WAY FORWARD

Add new capacities via organic and inorganic modes

Higher sales of Kraft Paper with Bursting factor BF greater than 22

focused towards increasing asset productivity, operating efficiencies and strengthening the competitive position

 increased product offering of better quality to customers

Better Realization

improved operating efficiencies

Genus is ZERO DISCHARGE, environment friendly producer.

Present Utilization of capacity is at around 75%

FINANCIALS

Revenue was Rs.247 Cr in FY 14 and gradually improving to Rs.346 cr in FY 18.

EBITDA increased from Rs.19 cr to Rs.36 cr.

PAT increased from 10 Cr to 15 Cr.

Cash PAT increased from 18 cr to 28 Cr.

But Profit Margin is very low. Fro Es.100 cr sales, the net profit is hardly Rs.3.62 Cr. Equity is high at Rs.25.71 cr. Therefore EPS is hardly 0.14.Therefore, dividend prospects are very bleak. To achieve Rs.10 EPS, the company has to make a profit of Rs.25.71 cr against the current Rs.3.62 Cr.

GENUS PAPER	Mar '18	Dec '17	Sep '17	Jun '17	Mar '17	YOY	QOQ
Net Sales	100	89	83	73	76	32.21	11.96
Net Profit	3.62	4.8	4.13	2.38	2.69	34.57	-24.58
Equity	25.71	25.71	25.71	25.71	25.71	0	0
Basic EPS	0.14	0.19	0.16	0.07	0.1	40	-26.32
Diluted EPS	0.14	0.19	0.16	0.07	0.1	40	-26.32
MP	11
PE	19.64
VOLUME	74739
PRICE TREND
GENUS PAPER	1 week	2 week	1 month	3 month	6 month	9 month	1 year
Price	10.85	11.2	10.84	12.75	12.16	5.45	5.09
Gain / Loss	5.07%	1.79%	5.17%	-10.59%	-6.25%	109.17%	123.97%