Star Paper Mills ↗

LT-Cash Credit Simple 2 Non-fund-based - ST-BG/LC Simple Annexure-5: Bank lender details for this company To view the lender wise details of bank facilities please click here Note on complexity levels of the rated instruments: CARE Ratings has classified instruments rated by it on the basis of complexity.

Raw material is the single largest cost of paper manufacturers. The supply of wood to domestic paper industry from natural forest resources is restricted by strict government regulations and causes raw material availability issues. Though the company is increasing its emphasis on development and plantation of clonal saplings, dependence of external wood/ bamboo supplies is still high, thereby exposing the company to the risk of raw material availability and volatility in raw material prices.

As on March 31, 2022, the net exposure of SPML to its associate company (ISG Traders Ltd) was at Rs.19.02 crore. The exposure accounted for 3.56% of the total net worth as on March 31, 2022. Key rating strengths Long track record of operations of the company The “Duncans” brand dates back to 1860s when a Scottish businessman, Walter Duncans, set up tea business in India. Goenka family took-over the business in early 1950s. Shri G.P. Goenka has been spearheading the business since 1979. He is cur

Long track record of operations of the company The “Duncans” brand dates back to 1860s when a Scottish businessman, Walter Duncans, set up tea business in India. Goenka family took-over the business in early 1950s. Shri G.P. Goenka has been spearheading the business since 1979. He is currently supported by his son Shri S. V. Goenka in managing day-to-day operations of the group, who also has an experience of over a decade. The group took the management and control of Star Paper Mills in 1986 the

Paper industry is power intensive, with power cost accounting for ~22% of the total sales in FY21 and FY22. The company’s operation requires around 13 MW of power (as per the data shared in FY16). The company has two captive power plants of 5 MW each (one diesel based and other coal based). With decline in diesel prices coupled with usage of pet coke in place of coal, has led to reduction in the power cost of SPML in FY16 vis-à-vis FY15. Accordingly, power consumption from own generation

Overall gearing ratio of the company stood at 0.02x as on March 31, 2022. The comfortable leverage position is due to low debts and healthy net-worth position of the company. Satisfactory financial performance In FY22, total operating income of SPML improved to Rs. 330.54 crore as compared to Rs. 233.37 crore in FY21. PBILDT margin of the company, also improved from 9.11% in FY21 to 9.68% in FY22 due to recovery in demand situation post pandemic.

In FY22, total operating income of SPML improved to Rs. 330.54 crore as compared to Rs. 233.37 crore in FY21. PBILDT margin of the company, also improved from 9.11% in FY21 to 9.68% in FY22 due to recovery in demand situation post pandemic.