Tamil Nadu Newsprint & Papers Limited has informed the Exchange about Transcript of Analysts/Institutional Investor Meet/Con. Call held on 13th April, 2022 with Senior Research Analyst, M/s. Sunidhi S...
Ld. TNPL Tamil Nadu Newsprint and Papers Limited
(A Govt. of Tamil Nadu Enterprise) Regd. Office : 67, Mount Road, Guindy, Chennai 600 032 Phone : (91) (044) 22301094-97, 223544 15-16 & 18 Fax : 22350834 & 22354614 Web: www.tnpl.com Email : raspanse@tnpl.co.in, export@tnpl.co.in TNPL - The Corporate Indentity Number : L22124TN1979PLCO07799
Date: 19" April, 2022
To BSE Limited (BSE) Corporate Relationship Department Phiroze Jeejeebhoy Towers 25th Floor, Dalal Street, Mumbai- 400001
Dear Sir,
National Stock Exchange of
| (NSE)
India Limited
Listing Department Exchange Plaza, 5th Floor, Plot No. C/1, G Block, BandraKurla Complex, Bandra (East), Mumbai — 400051
Disclosure
Sub: Requirements), Regulations, 2015
under
the
SEBI
(Listing
Obligations
and
Disclosure
Pursuant to Regulation 30 Disclosure Requirements) Regulations 2015, we enclose herewith the Transcript of the Analyst Meeting held on 13” April, 2022 with Senior Research Analyst, M/s. Sunidhi Securities & Finance Limited, Mumbai — 400 055 at the TNPL Corporate Office, Chennai.
Obligations and
the SEBI
(Listing
of
Kindly take the same on record.
Thanking you, Yours faithfully, For Tamil Nadu Newsprint and Papers Ltd.
. Thamizhgelvan 19|4lpoa2
Company Secretary
Encl: a/a.
Factory : Kaglthapuram-639 136, Karur District, Phone : 04324-27001 to 277017 Fax : (91) 04324-277025 to 277029
1
TRANSCRIPT OF ANALYST MEETING HELD ON 13TH APRIL, 2022 WITH M/S. SUNIDHI SECURITIES & FINANCE LIMITED
-
&
SPEAKER | PARTICULARS Speaker 1
NAME & DESIGNATION Sunidhi | Mr. Rabindra Nath Nayak Finance | Senior Research Analyst
Speaker 2
Analyst Securities Limited Company — Tamil Nadu | Mrs. Sathya Ananth Newsprint and Limited Company — Tamil Nadu | Mr. B. Thamizhselvan Newsprint and Limited Company — Tamil Nadu | Mrs. G. Gowri Newsprint and Limited
Speaker 4
Speaker 3
Papers | General Manager (Finance) & CFO
Papers | Company Secretary
Papers | Officer (Costing)
Speaker 1
is a. First of all
So my name is Rabindra Nath Nayak from Sunidhi. We started TNPL covering since 2014-15 and we have come out with a report. But now after this the previous period, very bad phase of paper sector we are covering this stock still appraising the institutions about the because we are known for the Company for TNPL. If anybody is covering in the market and we are the only person who is covering the TNPL in the market and every institution right from all the mutual funds and insurance company who are holding the TNPL, they always ask take our opinion. The last opinion to take any my own decisions that is that is our view, because we have a detailed estimate of the because it is not a very attractive sector altogether and very few companies take the initiative to go for a detailed calculations we have across our baggase, pulp, every pulp calculation detail. We have done the only brokerage who has done this detailed calculation in the market. So that is why people take our opinion for, you know what is our view on TNPL. That's why you can see a lot of you know ICICI Pru and also, the HDFC mutual fund, they were main holders. They always ask us before taking any decision. The final call they will take, they will take our opinion and we are now considering that the company is doing well. The new pulp mill has started and also the sector is doing well. The new pulp mill started at right time when the sector is moving up. So that is why we are seeing positive on this stock. So let me get through some questions ma'am so.
a paper company. It
is
it
Speaker 3
First let us introduce ourselves sir.
Speaker 2
Yeah, so Mr. Thamizhselvan and costing head Mrs Gowri with us.
is Sathya Ananth, GM Finance, so
this
| have Company Secretary
Speaker 1
So | will take up new questions on the revenue side. You know what it is generally revenue spread with regional spread of our revenue in terms of how they're placed in region wise in terms of in our company.
Speaker 2
Yes, when it comes to domestic it is writing and paper printing. The southern region is the Maximum we have around 55% of our revenue comes from southern region. Western it is 39%. 39% to 40% based on stock, and rest of India is around 5 to 7% normally. So this is how revenue is spread.
Speaker 1
And regarding this, you know how do you see the paper market going from here right now?
Speaker 2
As you were mentioning, you know, paper market has started just taking up actually. The update in the next one or 2 quarters the paper industry is going to definitely do well and then considering the other uncertainties and assess the dynamic situation, probably from there on rain and the other factors we need to consider probably.
Speaker 1
OK, OK ma’am, coming to the cost side. You know we have implemented our new pulp mill so we generally procure around 2 to 3 lakh ton wood_from TAFCON and also other sources so with the new pulp mill we require atleast 6 lakh ton of wood for our pulp generation. Yeah, so how we are procure, planning to procure the wood from the market and also our general sources.
Speaker 2
So with the introduction of the new pulp mill, the production capacity is around 700 metric tons per day. This requires around 10 lakhs metric ton of wood, out of which 2 lakhs we would be getting it from TAFCON, the other 8 lakhs we will be getting from the market. So we also have this farmers facility where we give them clonal plants around 50 million clonal plants we have given to them. Then we give them the guidance and then they grow the plants and they sell us. That is the system we have here that is actually helping us.
it back to
Speaker 1
So from them how much pulp wood we can procure?
Speaker 2
8 lakh tons per annum. It is around 22 thousand acres of plantation.
Speaker 1
OK, OK so that will be sufficient for our use.
Speaker 2
Absolutely sir for the new pulp mill as well as the existing pulp mill.
Speaker 1
And what is the price we generally what price we get from TAFCON and from our sources generally?
Speaker 3
Both are almost equal only sir.
Speaker 2
Almost there is not much of difference between TAFCON and the outside market. There is no premium given to TAFCON.
Speaker 1
regarding this baggase, know economy, |
OK and madam, this need some information regarding this, how much baggage we procure from open market and also bartering system and steam exchange in the 3 modes of baggase procurement we do? In terms of if at all 8 to 9 lakh ton of baggase we procure, what is the spread between the three?
Speaker 3
Its as per our workings sir, generally 6 lakh tons for our own consumption and balance 4 lakh tons for sugar mills. Total procurement is 10 lakhs sir.
Speaker 4
Sir around 8 to 10 lakh tons is what is the baggase we require, so out of which, major contribution is through barter system, that is steam or coal, so around 70 to 80% we procure through barter system and balance through open market. That is what the tie up we had for all this time.
Speaker 1
Ok, 70% from barter and also 30% from open market, and in this 70%, it is the barter and steam exchange?
Speaker 4
Put together.
Speaker 1
Ok, and steam exchange would be how much?
Speaker 4
That we don’t have the information.
Speaker 1
OK. So whether we're getting any advantage from stream exchange or barter system?
Speaker 4
No both are similar.
Speaker 1
So another thing our power plant you know operating at 53 to 60% currently. So is it due to the steam we generate for our paper making that is why our PLF is low or why?
Speaker 2
Actually, we are limiting to our own requirement alone because we do not get a good price for it when we are trying to export the power. So whatever is actually required for our production, we limit our production to requirement.
Speaker 1
OK.
Speaker 2
So in case in future, if you're getting a good price, we can actually do power export.
Speaker 1
And E-Auction Coal, if at all we get the domestic coal, can we have the option to exchange with the coal with the sugar mills to them? Or is
it not possible?
Speaker 2
is possible, | think the E-Auction we're presently doing but not in
It Whatever we get through the E-Auction is not sufficient.
a
big plan.
Speaker 4
So already one offsite we are using for substitution, one offsite. So if possible, if stock is available, we will explore the possibilities.
Speaker 1
So the current debt is around 220 crores? Without the expansion is same? As it is?.
it likely to remain
Speaker 2
The new pulp mill the debt is around 2400 crores.
Speaker 1
Ok. Thank you.
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