JK Paper net jumps 51%

Gross sales up 17% to Rs 786 cr; firm says new plant in Odisha, improved market share helped deliver better numbers

JK Paper has posted a 51 per cent increase in net profit at Rs 27.3 crore for the quarter ended March, against Rs 18 crore for the corresponding quarter last year.

Gross sales rose 17 per cent to Rs 786.45 crore for the  quarter, against Rs 671.8 crore for the corresponding quarter last year. Earnings before interest, taxes, depreciation and amortisation at Rs 114 crore witnessed 23 per cent growth from Rs 92.6 crore in the previous year’s corresponding quarter.

Harsh Pati Singhania, vice-chairman & managing director, said, “The significant operational improvement in performance is due to the substantial benefits derived from the company’s new state-of-the-art pulp and paper plant at its Odisha unit, coupled with growth in market share in its mainstay office papers business and a richer product mix.  The company has been able to increase its exports despite tough overseas markets.”

JK Paper is the market leader in the branded copier paper segment in India, with a market share of 27 per cent. It is also among the top producers of coated paper and packaging boards in the country. The company is consistently following a policy of focusing on value-added products such as coated paper, virgin fibre packaging boards and high-end maplitho paper.

“As part of the company’s ongoing fund raising programme, the company has decided to issue foreign currency convertible bonds (FCCBs) not exceeding $25 million. The proceeds will be used for repayment or pre-payment of existing external commercial borrowings (ECBs)/FCCBs and to meet capital expenditure,” Singhania added.

The company’s stock closed at Rs 51.30, up 0.10 per cent, on the BSE on Friday.