Company Name WestCoast Paper

Ticker WSTCSTPAPR
Sector Paper and Pulp
CMP (in Rs.) 318

Mcap 2100 Crs

Equity Capital 13 Crs Face Value 2
Free Float 928 Crs 44%
52 week low/high
Promoter holding 55.82%

Company Description

West Coast Paper Mills Limited enjoys a pedigree standing over the past 61 years as premium brand in Paper
industry,widely acknowledged both in India and abroad. The product-line features many well-established brands-
ranging from 52 to 600 GSM- of commercial to premium grades of paper and boards,spread out across six different
product segments : Writing,Printing, Business stationery, Specialty, Industrial and Packaging. The Company operates six
versatile machines with an installed capacity of 3,20,000 TPA,latest addition being the 500 TPD state of the art Voith
Paper Machine, with which the quality standards of the Company products have risen to international standards.

Products
1. Premium Printing Papers
2. Business Stationary
3. Security and Hi-Value Grade Paper
4. Cup Stock and Coated Duplex Board
5. Printing and Writing

Brands
Competitors Price
Price Mcap Mcap/Sales FY 17 Sales PAT %
WestCoast Paper 318 2100 1.2 1770 7.2%
JK Paper 157 2449 1 2629 6.6%
Tamil Newsprint 458 3170 1.1 2,950 9.0%
and in Paper
ablished brands-
across six different
Company operates six
tate of the art Voith
tional standards.
ROE D/E EPS PE Beta
21% 0.59 19.5 16.3 1.61
16% 1.08 10.0 15.8 1.53
16% 38.2 12.0 1
 Amt in Crs 2013 A 2014 A 2015 A 2016 A
1 Segment Revenue

Paper and Board 1499 1611 1644 1713

Y-o-Y % 7% 2% 4%
% of sales 97% 97% 94% 95%

Cables 0 44 103 86
Y-o-Y % 16196% 134% -17%
% of sales 0% 3% 6% 5%

WindPower 42 0 0 0
Y-o-Y % -99% -9% -30%
% of sales 3% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

 % of sales 0% 0% 0% 0%
Total 1541 1655 1747 1799
Y-o-Y % 7% 6% 3%
% of sales 100% 100% 100% 100%

2 Other Operating Income

Sale of Fly Ash 0 0 0 0
Y-o-Y % 33% -32% 7%
% of sales 0% 0% 0% 0%

Sale of Scrap 4 5 6 5
Y-o-Y % 29% 29% -21%
% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Y-o-Y % #DIV/0! #DIV/0! #DIV/0!

% of sales 0% 0% 0% 0%

Total 4 5 6 5
YoY growth 30% 23% -20%
% of sales 0% 0% 0% 0%
Total Revenue 1545 1660 1754 1804
YoY growth 7% 6% 3%
2017 A 2018 E 2019 E 2020 E

1795 1929 2065 2230

5% 7% 7% 8%
96% 96% 96% 96%

75 79 83 87
-13% 5% 5% 5%
4% 4% 4% 4%

0 0 0 0
-33% 10% 10% 10%
0% 0% 0% 0%

0 0 0
#DIV/0! 6% 5% 5%
0% 0% 0% 0%

0 0 0
#DIV/0! 9% 10% 10%
0% 0% 0% 0%

- - -
#DIV/0! 5% 5% 5%
0% 0% 0% 0%

0 0 0
#DIV/0! 10% 10% 10%
0% 0% 0% 0%

0 0 0
#DIV/0! 12% 12% 12%
0% 0% 0% 0%

0 0 0
#DIV/0! 12% 12% 12%
0% 0% 0% 0%

0 0 0
#DIV/0! 12% 12% 12%
0% 0% 0% 0%

0 0 0
#DIV/0! 12% 12% 12%
 0% 0% 0% 0%
1870 2008 2147 2317
4% 7% 7% 8%
100% 100% 100% 100%

0 0 0 0
-100% 5% 5% 5%
0% 0% 0% 0%

6.00 6 7 7
27% 5% 5% 5%
0% 0% 0% 0%

0 0 0
#DIV/0! 6% 7% 7%
0% 0% 0% 0%

0 0 0
#DIV/0! 6% 7% 7%
0% 0% 0% 0%

6 6 7 7
19% 5% 5% 5%
0% 0% 0% 0%
1876 2015 2154 2324
4% 7% 7% 8%
WestCoast Paper -16.23 -0.03 0.00 -0.11
BALANCE SHEET 2013 A 2014 A 2015 A 2016 A

A EQUITY AND LIABILITIES

1 Shareholders' Funds
a) Share Capital 13 13 13 13
b) Reserves and Surplus 568 583 585 585

2 Non-Current Liabilities
a) Long Term Borrowings 592 594 396 419
b) Deferred Tax Liabilities (net) 62 69 72 89
c) Other Long Term Liabilities 31 30 29 28
d) Long Term Provisions 4 4 4 4

3 Current Liabilities
a) Short Term Borrowings 299 274 301 221
b) Trade Payables 106 258 249 199
c) Other Current Liabilities 256 260 274 186
d) Short Term Provisions 10 10 2 12
TOTAL 1941 2094 1925 1758

B ASSETS
1 Non-Current Assets
a) Fixed assets
(i) Tangible Assets 1318 1243 1147 1052
(ii) Intangible Assets 0 0
(iii) Capital Work-in Progress 3 5 2 3
(iv) Intangible Assets under Developm 0 0 0
b) Non-Current Investments 47 47 47 8
c) Long-term Loans & Advances 52 56 64 63
d) Other Non-Current Assets 0 0 0 1

2 Current Assets
a) Current Investments 0 0 0 0
b) Inventories 301 488 483 468
c) Trade Receivables 82 101 125 118
d) Cash and Cash Equivalents 6 9 13 13
e) Short-Term Loans and Advances 64 75 18 19
f) Other Current Assets 86 71 26 13
1958 2094 1925 1758
Fixed Asset 1320.30 1247.40 1149.00 1055.80
Y-o-Y -6% -8% -8%
Capex 54 24 18
Book Value 88 90 91 91
Debt 892 867 697 640
D:E 1.53 1.45 1.17 1.07
Networth 582 597 598 599
Capital Employed 1174 1190 994 1018

WC -133 -58 -161 11

Current Ratio 0.80 0.93 0.81 1.02
Non cash wc 155 202 124 218
as a % of revenue 11% 13% 8% 13%
 0.65 -0.28 -0.20 0.35
2017 A 2018 E 2019 E 2020 E
Rs. In Crores

13 13 13 13
626 651 690 754

294 511 547 590

135 0 0 0
93 93 93 93
6 6 6 6

84 284 304 328

148 213 257 311
168 181 194 209
43 17 19 20
1610 1970 2122 2324

1021 992 974 962

3
6
0 0 0 0
1 0 0 0
2 57 61 66
83 0 0 0

0 0 0 0
283 301 322 347
128 130 139 150
23 397 526 691
5 33 35 38
54 61 65 70
1610 1970 2122 2323
1030.00 992.35 973.97 962.07
-2% -4% -2% -1%
85 85 102 95
97 102 108 118
378 796 851 918
0.59 1.20 1.21 1.20
639 664 703 767
933 1175 1250 1357

50 225 314 428

1.11 1.32 1.41 1.49
111 113 92 64
6% 6% 5% 3%
WestCoast Paper Rs. In Crores
Statement of Profit & Loss

Particulars 2013 A 2014 A 2015 A 2016 A 2017 A 2018 E 2019 E

Income from Operations 1450 1557 1642 1694 1763 1888 2019
Y-o-Y 7% 5% 3% 4% 7% 7%
Other Operating Revenues 4 5 6 5 6 6 7
Y-o-Y 30% 17% -21% 36% -2% 5%
Revenue From Operations 1454 1562 1648 1699 1770 1894 2025
Y-o-Y 7% 5% 3% 4% 7% 7%
Q-o-Q
Cost of Materials Consumed 839 1041 1015 1009 995 1095 1171
% of Sales 58% 67% 62% 59% 56% 58% 58%
Purchases of stock-in-trade 0 0 0 0 0 0 0
% of Sales 0% 0% 0% 0% 0% 0% 0%
Changes in Inventories 13 -71 20 42 24 0 0
% of Sales 1% -5% 1% 2% 1% 0% 0%
Employee Benefit Expense 84 90 98 115 118 114 122
% of Sales 6% 6% 6% 7% 7% 6% 6%
Depreciation 136 127 122 111 111 123 120
% of Sales 9% 8% 7% 7% 6% 6% 6%
% of Fixed Asset 10% 10% 11% 11% 11% 11% 11%
Other Expenses 250 294 274 281 294 326 348
% of Sales 17% 19% 17% 17% 17% 17% 17%
EBITDA 268 208 241 251 338 360 385
EBITDA Margin 18% 13% 15% 15% 19% 19% 19%
Y-o-Y -22% 16% 4% 35% 6% 7%
Other Income 5 7 3 8 2 6 6
Y-o-Y 39% -54% 151% -71% 153% 7%
EBIT 137 88 122 148 230 243 270
EBIT Margin 9% 6% 7% 9% 13% 13% 13%
Finance Cost 72 73 67 71 52 81 87
% 8% 8% 10% 11% 14% 10% 10%
Profit Before Tax And Prior Period I 65 15 55 77 178 162 184
Y-o-Y -77% 280% 39% 131% -9% 14%
Prior Period Items/Exceptional Item 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Exceptional Items -40.00 0.00 -52 -53.00 0.00 0.00 0.00
Profit Before Tax 25 15 4 24 178 162 184
Tax Expense 6 7 3 16 49 55 62
Tax Rate 26% 48% 78% 67% 28% 34% 34%
Profit After Tax 18 8 1 8 128 107 121
PAT Margin 1% 0% 0% 0% 7% 6% 6%
Y-o-Y -58% -89% 839% 1527% -17% 14%
EPS 8.88 1.00 0.17 1.34 19.46 1641% 1863%
Y-o-Y -89% -83% 688% 1352% -16% 14%
 WestCoast Paper 2013 A 2014 A 2015 A 2016 A 2017 A
Particulars

5 Reserve & Surplus

(i) Capital Redemption Reserve 65 65 65 65 65
(ii) General Reserve 370 369 369 369 369
(iii) Securities Premium Account 146 146 146 146 146
(iv) Equity Share Warrant Forfeited 3 3 3 3 3
(v)Retained Earnings
(v) Profit & Loss Account
Opening Balance -8 2 1 2 3
Add : Profit for the year 18 7 1 9 128
Less : Proposed Dividend 7 7 0 7 82
Tax on Dividend 1 1 0 1 6
Transfer to Genereal Reserve 18 0 0 0 0
Closing Balance -15 1 2 3 43
568 583 585 585 626

6 LONG-TERM BORROWINGS
Secured 412 399 219 266 152.00
Unsecured 180 194 177 153 142.00
592 594 396 419 294.00

Long Term Borrowings/Sales 38% 36% 23% 23% 16%

7 DEFERRED TAX LIABILITIES (NET)

Deferred Tax Liabilities
Depreciation/Amortisation 137 139 140 144
Deferred Tax Assets
Provision for Doubtful Debts 75 70 68 55
62 69 72 89 135.05

8 OTHER LONG-TERM LIABILITIES

Dealer Deposits 31 29 29 28
Employee Security Deposit 0 0 0 0
31 30 29 28 93

9 LONG-TERM PROVISIONS
Provision for Employee Benefits 4 4 4 4 6.00

4 4 4 4 6
0.002 0.002 0.003 0.002 0.003
10 SHORT-TERM BORROWINGS

Secured 135 264 292 211 84.00

 Unsecured 165 10 10 10

299 274 301 221 84.00

STB/SALES 0.21 0.18 0.18 0.13 0.05
11 TRADE PAYABLES
Acceptances 106 258 249 199 148.00
106 258 249 199 148.00

Days Payable O/S 45 97 88 69 53

12 OTHER CURRENT LIABILITIES

Current maturities of long-term debt 189 199 213 104
Interest Accrued but not due on borrowings 5 4 3 2
Unpaid Dividend 1 1 1 0
Capital Creditors 12 5 2 1
Accrued Salaries and Benefits 10 12 14 26
Other Liabilities
Statutory Dues 10 13 16 15
For Expenses 12 14 13 17
Others 16 13 13 21

256 260 274 186 168.00

Other Current Liabilities/Sales 16.6% 15.7% 15.6% 10.3% 9.0%

13 SHORT TERM PROVISIONS

Provision for EE Benefits 3 2 2 4

Proposed Dividends 7 7 7
Tax on Proposed Dividend 1 1 1

10 10 2 12 43.00

Short Term Provisions / Sales 0.67% 0.58% 0.09% 0 2.29%

14 NON CURRENT INVESTMENTS

Trade Investment 47 47 47 8
Non-Trade Investment 0 0 0 0
47 47 47 8 1

15 LONG TERM LOANS AND ADVANCES

Security Deposits 1.70 1.70 2 2
Loans and Advances 8 0
MAT credit entitlement 35.10 36.70 36 42
 Advance Tax 15.20 17.50 19 19
52.00 55.90 64 63 2

Long Term Loans & Advances/Sales 3.6% 3.6% 3.9% 3.7% 0.1%

16 OTHER NON-CURRENT ASSETS

Deposit with State Forest Dept 0
Deposit with Custom 1
0.00 0.00 0.00 1 83

17 Current Investments
Current Investments
0.00 0.00 0.00 0.00 0.00

18 INVENTORIES

301 488 483 468 283

Inventory days 75 114 107 100 58
19 TRADE RECEIVABLES
Over six months 3 3 12 27
Others 80 98 113 92
82 101 125 118 128

Days Sales O/S 19 22 26 24 25

20 CASH AND BANK BALANCES

Balances with banks 4 4 6 6 14
Cash on hand 1 0 0 0 0
Other bank balances 1 5 7 7 9
6 9 13 13 23

21 SHORT TERM LOANS AND ADVANCES

Prepaid Expenses 1
Advance to Suppliers 27 16 14 11
Loans to Employees 34 55 0
Deposits 4 4 4 4
Others 2
64 75 18 19 5.00

15 17 4 4 1
22 OTHER CURRENT ASSETS
Balance with Govt Authorities 86 71 25.70 13 54

86 71 25.70 13 54

20 16 5 3 10
2018 E 2019 E 2020 E

65 65 65
369 369 369
146 146 146
3 3 3

43 68 107
107 121 146
82 82 82

0 0 0
68 107 171
651 690 754

511 547 590

27% 27% 27% 27%

0.00 0.00 0.00

93.00 93.00 93.00

6.00 6.00 6.00

6.00 6.00 6.00

0.003 0.003 0.003
 284 304 328
0.15 0.15 0.15 0.15

212.99 256.60 311.44

212.99 256.60 311.44

71 80 90

181.32 193.86 209.13

9.0% 9.0% 9.0%

17.33 18.52 19.98

0.86% 0.86% 0.86% 0.86%

0.00 0.00 0.00

 56.82 60.75 65.54

3.0% 3.0% 3.0% 3.0%

0.00 0.00 0.00

0.00 0.00 0.00

301 322 347

58 58 58 58

129.74 138.71 149.63

25 25 25

396.79 526.37 691.05

33.12 35.41 38.20

6 6 6
60.53 64.72 69.82

11 11 11 11
 WestCoast Paper
PROFIT & LOSS SCHEDULES 2013 A 2014 A 2015 A 2016 A 2017 A

23 REVENUE FROM OPERATIONS

Sale of Products 1541 1655 1747 1799 1870
Other Operating Revenues 4 5 6 5 6
Total 1545 1660 1753 1804 1877
Less : Excise Duty 91 98 105 105.00 107
Net Revenue from Operations 1454 1562 1648 1699 1770

Excise Duty as Sale of products 0 6% 6% 6% 6%

PARTICULARS OF SALE OF PRODUCTS & SERVICES

Paper and Board 1499 1611 1644 1713 1795
Cables 0 44 103 86 75
WindPower 42 0 0 0 0
1541 1655 1747 1799 1870

OTHER OPERATING REVENUE

Sale of fly ash 0 0 0 0 0
Sale of scrap 4 5 6 5 6.00
4 5 6 5 6

24 OTHER INCOME
Interest income 4 6 1 7 1
Dividend Income 0 0 0
Other Non Operating Income
Profit on sale of fixed assets 1
Other Income 1 1 1 1 2
Net Foreign Exch Gain 0 0 0

5 7 3 8 2
0.3% 0.4% 0.2% 0.5% 0.1%
25 COST OF MATERIALS CONSUMED 754
Pulp Wood 572.00 753.00 742.00 204 732.00
Chemical Dyes 225.00 242.00 227.00 51 212.00
Packing Material 42.00 46.00 46.00 51.00
839.00 1041.00 1015.00 1009.00 995.00

COMS Ratio 58% 67% 62% 60% 56%

26 PURCHASE OF STOCK-IN-TRADE
 PURCHASE OF STOCK-IN-TRADE
0.00 0.00 0.00 0.00 0.00
Stock in trade Ratio 0% 0% 0% 0% 0%

27 CHANGES IN INVENTORIES
Inventories (at close)
Finished goods
Stock in Trade
Work in progress
0.00 0.00 0.00 0.00 0.00

Inventories (at beginning)

Finished goods
Stock in Trade
Work in progress
Loss of Stock due to fire
0.00 0.00 0.00 0.00 0.00

Total 13.00 -71.00 20.00 42.00 24.00

Change in Inventory/Sales 1% -5% 1% 2% 1%

59% 62% 63% 62% 58%

28 EMPLOYEE BENEFITS EXPENSES

Salaries and wages 66 74 81 99 98
Contribution to Provident and other fd
Provident and family pension funds 5 5 6 6 8
EE state ins 1 1 0 0 0
Gratuity Fund 4 3 3 3 1
Superannuation Fund 1 1 0 0 0
EE Group Ins 0 0 0 0 0
Leave Encashment 1 0 0 0 2
Staff welfare expenses 5 6 7 7 8
84 90 98 115 118

% of Sales 5.76% 5.79% 5.95% 6.80% 6.69%

29 FINANCE COSTS
Interest Expense
Term Loans 51 48 23 30
Others 17 20 40 35
Other Borrowing Cost 2 3 3 2
Applicable net loss on For. Curr. Trans. 3 2 4
 72 73 67 71 52.00

Interest % to Debt 8.1% 8.4% 9.6% 11.1% 13.8%

30 OTHER EXPENSES
Consumption of stores & spares 42 55 52 49 57
Power and Fuel 143 170 157 153 150
Water charges and cess 1 1 1 1 0
Rent 2 2 2 2 2
Repairs and Maintenance : 18 24 21 23 29
Insurance 1 1 2 1 1
Rates and Taxes 0 0 0 0 0
Research and Dev Exp 0 0 0 0 1
Misc Exp 11 12 11 15 12
Payment to Auditors 0 0 0 0 0
Cost Aud Rem 0 0 0 0 0
Forwarding Charges on Sales 20 19 17 20 22
Commission on Sales 10 8 9 11 10
Bad Debt irrecoverable 0 0 0 0 1
Commission to Director 0 0 0 3 7
Director's Fees and Exp 0 0 0 0 0
Charity and Donation 0 0 0 0 0
CSR EXP 0 0 0 0 1
SB CESS 0 0 0 0 1
Obsolete Assets W/OFF 0 0 0 0 0
Loss on sale of fixed assets 0 2 0 0 0

250 294 274 281 294

17.2% 18.8% 16.6% 16.5% 16.6%

31 CONTINGENT LIABILITIES & PROVISIONS

Claims against Company not Acknowledged as Debt
Bank Gurantees and Letters of Credit Outstanding
0.00 0.00 0.00 0.00 0.00
 Rs. In Crores
2018 E 2019 E 2020 E

2008 2147 2317

6 7 7
2015 2154 2324
121 129 139
1894 2025 2185

6% 6% 6%

2008 2147 2317

2008 2147 2317

6 7 7
6 7 7

6 6 7
0% 0% 0% 0.3%

1094.95 1170.74 1263.05

56% 56% 56%

 0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

2% 2% 2% 2%
58% 58% 58%

113.65 121.51 131.08

6.00% 6.00% 6.00% 6%

 81.15 86.76 93.59

10% 10% 10% 10.2%

325.79 348.32 375.75

17% 17% 17% 17.2%

0.00 0.00 0.00

 WestCoast Paper
CASH FLOW 2014 A 2015 A 2016 A

Cash Flow From Operations Activities

Profit before Taxes 15 4 24
Adjustment For:
Depreciation 127 122 111
Interest Income -6 -1 -7
Loss/(Profit) on Disposal of Fixed Asset 2 0 0
Finance Cost 73 67 71
Bad Debts/Advances written off 0 0 0
Unspent Liabilities Written Off 0 0 0
211 192 199
Operating Profit Before Working Capital Changes
Adjustment For:
Increase/(Decrease) in Trade Payables 152 -9 -50
Increase/(Decrease) in Other Current Liabilities 5 13 -87
Increase/(Decrease) in Short Term Provisions -1 -8 11
(Increase)/Decrease in Inventories -187 5 16
(Increase)/Decrease in Trade Receivables -19 -24 7
(Increase)/Decrease in Short-Term Loans and Advances -11 57 -1
(Increase)/Decrease in Other current assets 15 45 13

Increase/(Decrease) in Other Long Term Liabilities -1 -1 -1

Increase/(Decrease) in Long Term Provisions 0 0 0
(Increase)/Decrease in Long-term Loans & Advances -4 -9 2
(Increase)/Decrease in Other Non-Current Assets 0 0 -1

160 262 107

Less : Income Tax Paid 7 3 16
Net Cash generated from operations 153 259 91

Cash Flow From Investing Activities

Net (Purchase)/Sale of fixed assets -54 -24 -18
Net (Increase)/Decrease Non Current Investments 0 0 38
Net (Increase)/Decrease Current Investments 0 0 0
Interest Income 0 0 0
Net Cash generated from Investing Activities -54 -23 21

Cash Flow From Financing Activities

(Repayment of)/Proceeds from Long-term borrowings 1 -198 23
(Repayment of)/Proceeds from short-term borrowings -26 28 -80
Finance Cost Paid -73 -67 -71
Dividend Paid -8 0 -5
Net Cash generated from Financing Activities -106 -237 -133
Net Increase / (Decrease) in Cash & Cash Equivalents -7 -1 -22
Cash and Cash equivalents at the beginning of the year -7 -9
Cash and Cash equivalents at the end of the year -7 -9 -31
2017 A 2018 E 2019 E 2020 E

178 162 184 221

111 120 120 107

-1 -6 -6 -7
0 0 0 0
52 81 87 94
1 0 0 0
0 -126 0 0
341 231 385 415

-51 65 44 55
-18 13 13 15
31 -26 1 1
185 -18 -21 -25
-10 -1 -9 -11
14 -28 -2 -3
-41 -7 -4 -5

65 0 0 0
2 0 0 0
61 -55 -4 -5
-83 83 0 0

494 258 402 437

49 55 62 75
445 203 339 362

-85 -91 -102 -95

8 1 0 0
0 0 0 0
0 6 6 6
-78 -84 -96 -89

-125 217 35 43
-137 200 20 24
-52 -81 -87 -94
-92 -82 -82 -82
-407 254 -114 -109
-39 373 130 165
-31 23 397 526
-70 397 526 691
WestCoast Paper

Risk free rate 7% Total Debt 640

Market return 12% Total Networth 2100
Risk Premium 5%
Beta 1.61
Cost of Equity 15%
Cost of Debt 19%
Tax Rate 34%
Post-tax cost of debt 12% Terminal Cash Flow 10.43
Weight of Equity 77%
Weight of Debt 23%
WACC 16%
FCF Perpetual Growth Rate 6%

FCFF

25-Jan-18 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19

EBIT 88 122 148 230 243 270
Tax 7 3 16 49 55 62
NOPAT 81 119 132 180 188 208
Depreciation & Amortisation 127 122 111 111 123 120
Changes in WC -51 71 -92 153 27 17
Capex -54 -24 -18 -85 -85 -102
FCF 103 288 133 359 252 244
Discounting Factor 0.97 0.84
Present Value of Free Cash Flows 246 204
Terminal Cash Flow
PV of Terminal Cash Flow
Total Cumulative Cash Flows
Less: Debt
Add: Cash & Cash Equivalents
Add: Investments
Less: Contigiencies
NAV
O/s Shares
Target Price
Current Price
Upside / (Downside)
Raw Material availability is major problem for the industry in the wake of which it is focusing on social forestry and
Captive Plantation Project, this would help the company to control rising input costs and thereby produce better
margins. The growth rate of West Coast Paper has been lower than the industry average of 6-7%. The spike in last year
profits was also majorly due to lower input cost with almost no significant change in revenue growth. However after
factoring in low per capita paper consumption and rising literacy rates growth rate in perpetuity has been taken as 6%.
Gordon Growth model has been used for calculating terminal value.
31-Mar-20
314
70
244
107
23
-95
279
0.72
201
2909
2098 76%
2750
378
23
1
0
2396
7
363
318
14%
 ocial forestry and
produce better
. The spike in last year
wth. However after
has been taken as 6%.
WestCoast Paper

Particulars 2013 A 2014 A 2015 A 2016 A 2017 A 2018 E

Revenue 1454 1562 1648 1699 1770 1894

Revenue Growth 7% 5% 3% 4% 7%
EBITDA 268 208 241 251 338 360
EBITDA Margin % 18% 13% 15% 15% 19% 19%
EBIT 137 88 122 148 230 243
EBIT Margin % 9% 6% 7% 9% 13% 13%
PAT 18 8 1 8 128 107
PAT Margin % 1% 0% 0% 0% 7% 6%
EPS 8.9 1.0 0.2 1.3 19.5 16.4
EPS Growth -89% -83% 688% 1352% -16%
Debt 892 867 697 640 378 796
Interest 72 73 67 71 52 81
ROE 1% 0% 1% 21% 16%
ROCE 7% 11% 15% 24% 23%
Amount in Rs. Crores

2019 E 2020 E

2025 2185
7% 8%
385 415
19% 19%
270 314
13% 14%
121 146
6% 7%
18.6 22.4
14% 20%
851 918
87 94
18% 20%
22% 24%
WestCoast Paper

Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15
Net Sales 334 424 396 402 392 420
Q-o-Q 27% -7% 2% -2% 7% -100%
Y-o-Y 17% -1% -100%
Other Operating Income 1 1 1 2 2 2
Q-o-Q 39% 42% 41% 0% 0% -100%
Y-o-Y 178% 100% -100%
Total Income from Operations 335 425 397 404 394 422
Q-o-Q 27% -6% 2% -2% 7% -100%
Y-o-Y 18% -1% -100%
Expenses
Cost of Materials Consumed 210 283 281 267 247 261
% of Sales 63% 67% 71% 66% 63% 62% #DIV/0!
Purchase of Stock-in-Trade 0 0 0 0 0 0
% of Sales 0% 0% 0% 0% 0% 0% #DIV/0!
Changes in Inventories -19 23 -43 -32 -4 10
% of Sales -6% 5% -11% -8% -1% 2% #DIV/0!
Employee Benefits Expense 22 22 24 23 24 24
% of Sales 7% 5% 6% 6% 6% 6% #DIV/0!
Depreciation 31 31 32 33 29 30
% of Sales 9% 7% 8% 8% 7% 7% #DIV/0!
Sub-Contracting
% of Sales 0% 0% 0% 0% 0% 0% #DIV/0!
Other Expenses 63 76 73 82 68 73
% of Sales 19% 18% 18% 20% 17% 17% #DIV/0!
Total Expenses 307 435 367 373 364 398 0
% of Sales 92% 102% 92% 92% 92% 94% #DIV/0!
Profit Before Other Income, Finan 28 -10 30 31 30 24 0
% of Sales 8% -2% 8% 8% 8% 6% #DIV/0!
Other Income 0 0 0 0 1
% of Sales 0% 0% 0% 0% 0% 0% #DIV/0!
Profit Before Finance Cost and Ta 28 -10 31 31 30 25 0
% of Sales 8% -2% 8% 8% 8% 6% #DIV/0!
Finance Cost 0 17 18 16 16 15
Exceptional Item
Profit Before Taxes 27 -27 13 15 14 10 0
% of Sales 8% -6% 3% 4% 4% 2% #DIV/0!
Taxes 3 -8 5 7 4 3
% of Tax 11% 30% 40% 46% 28% 30% #DIV/0!
Profit after Taxes 24 -19 8 8 10 7 0
% of Sales 7% -4% 2% 2% 3% 2% #DIV/0!
Q-o-Q -178% -140% 10% 25% -33% -100%
Y-o-Y -57% -137% -100%
EPS -2.91
 Rs. In Crores
Q4 FY 15 Q1 FY 16 Q2 FY 16 Q3 FY 16 Q4 FY 16 Q1 FY 17 Q2 FY 17 Q3 FY 17 Q4 FY 17 Q1 FY 18
398 392 409 439 408 444 465 508 410
#DIV/0! -2% 4% 7% -100% #DIV/0! 9% 5% 9% -19%
-1% 0% -3% #DIV/0! -100% 4% 9% 6% #DIV/0! 0%
2 1 2 1 1 2 0 2 3
#DIV/0! -50% 100% -50% -100% #DIV/0! 100% -100% #DIV/0! 50%
0% -50% 0% #DIV/0! -100% 0% 0% -100% #DIV/0! 200%
400 393 411 440 0 409 446 465 510 413
#DIV/0! -2% 5% 7% -100% #DIV/0! 9% 4% 10% -19%
-1% 0% -3% #DIV/0! -100% 4% 9% 6% #DIV/0! 1%

223 250 256 262 237 268 253 237 213

56% 64% 62% 60% #DIV/0! 58% 60% 54% 46% 52%
0 0 0 0 - - - - -
0% 0% 0% 0% #DIV/0! 0% 0% 0% 0% 0%
13 -16 1 13 2 -4 -7 33 -20
3% -4% 0% 3% #DIV/0! 0% -1% -2% 6% -5%
25 28 28 29 29 29 30 31 30
6% 7% 7% 7% #DIV/0! 7% 7% 6% 6% 7%
34 27 28 28 27 27 29 29 26
9% 7% 7% 6% #DIV/0! 7% 6% 6% 6% 6%

0% 0% 0% 0% #DIV/0! 0% 0% 0% 0% 0%
66 66 70 71 69 73 108 110 104
17% 17% 17% 16% #DIV/0! 17% 16% 23% 22% 25%
361 355 383 403 0 364 393 413 440 353
90% 90% 93% 92% #DIV/0! 89% 88% 89% 86% 85%
39 38 28 37 0 45 53 52 70 60
10% 10% 7% 8% #DIV/0! 11% 12% 11% 14% 15%
0 0 1 0 1 0
0% 0% 0% 0% #DIV/0! 0% 0% 0% 0% 0%
39 38 29 37 0 46 53 52 70 60
10% 10% 7% 8% #DIV/0! 11% 12% 11% 14% 15%
20 17 16 17 19 13 21 6 8
51 54 7
-32 -33 13 20 0 27 40 38 64 52
-8% -8% 3% 5% #DIV/0! 6% 9% 8% 13% 13%
-10 -9 6 5 12 14 10 13 -2
31% 28% 48% 25% #DIV/0! 45% 35% 26% 20% -4%
-22 -24 7 15 0 15 26 28 51 54
-6% -6% 2% 3% #DIV/0! 4% 6% 6% 10% 13%
#DIV/0! 7% -128% 130% -100% #DIV/0! 79% 10% 79% 6%
-364% -327% -7% #DIV/0! -100% -162% 298% 90% #DIV/0! 273%
Rs. In Crores
Q2 FY 18
421
3%
-5%
1
-77%
-65%
422
2%
-5%

264
63%
-
0%
-29
-7%
31
7%
28
7%

0%
72
17%
366
87%
56
13%

0%
56
13%
12

44
10%
-3
-8%
47
11%
-13%
81%
Revenue Growth Trend

Rs. In Cr.
2500
Revenue Growth Trend
FY 13 1454
Q1 FY 14 335 2000
Q2 FY 14 425
Q3 FY 14 397
Q4 FY 14 404 1500
FY14 1562
Q1 FY 15 394
1000
Q2 FY 15 422
Q3 FY 15 0
Q4 FY 15 400 500
FY 15 1648
Q1 FY 16 393
0
Q2 FY 16 411
1 3 1 4 1 4 1 5 1 5 1 5 1 6 1 6
Q3 FY 16 440 FY FY FY FY FY FY FY FY FY
Q4 FY 16 0 Q2 Q4 Q1 Q3 Q2 Q4 Q1
FY 16 1699
Q1 FY 17 409
Q2 FY 17 446
Q3 FY 17 465
Q4 FY 17 510
FY 17 E 1770
FY 18 E 1894
FY 19 E 2025
FY 20 E 2185
venue Growth Trend

5 5 5 6 6 7 7 E E
Y1 FY
1
FY
1
FY
1
FY
1
FY
1
FY
1 1 7 1 9
FY FY
Q3 Q2 Q4 Q1 Q3