Tamil Nadu Paper Limited is a Government of Tamil Nadu undertaking, with major business in paper production. TNPL has posted descent results with 16.8% increase in revenue and 33% increase in net profits YoY.
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- The increase in profits was mainly due to higher operating margins coupled with increase in revenue. TNPL has increased its operating margin from 15.3% in Q1FY16 to 17.6% for Q1 current year.
- The other thing to look out is the finance costs of the company has gone up by 74.17% YoY. This means the company has been adding more debt to finance its operations.
- TNPL has paid only 10.52% of the PBT as taxes for Q1 current year, and for previous year same quarter, it has paid nearly 21.28% of PBT as taxes. Indicating, for coming quarters it needs to put more money aside for taxes.
- The company has also stated that, they will be ramping up the production of paperboard in a gradual manner.
The results were post market hours, however the stock prices closed 6.16% down at Rs 281.60.
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