Genus Paper & Boards hit 5% upper circuit at Rs 14.74 at 11:03 IST on BSE after the company said that it has taken on lease a kraft paper manufacturing facility for 5 years with effect from 22 January 2018.
The company made the announcement after market hours yesterday, 23 January 2018.Meanwhile, the S&P BSE Sensex was up 64.18 points or 0.18% at 36,204.16. The S&P BSE Small-Cap index was down 84.14 points, or 0.43 % at 19,567.02, underperforming the Sensex.
On the BSE, 69,666 shares were traded in the counter so far, compared with average daily volumes of 2.36 lakh shares in the past one quarter. The stock was locked at a high of Rs 14.70, so far during the day. The stock had hit a record high of Rs 15.34 on 16 January 2018. The stock had hit a 52-week low of Rs 4.16 on 5 July 2017.
Genus Paper & Boards said that the facility is located at Kashipur, Uttarakhand and has manufacturing capacity of 75,000 metric tonnes per annum (mtpa).
It is an operational plant and the leasing would help to start production on immediate basis and cater to the demand of existing clients of the company.
Commenting on the agreement, Kailash Chandra Agarwal, Managing Director, of the company said that it has witnessed consistent surge in demand and this agreement would enhance its existing manufacturing capacities by 50%. This will help in catering to the demands of the existing clients on immediate basis and help to add new clients. The strategy of asset light expansion would help in improving the profitability of the company and in turn the return ratios, he added.
Genus Paper & Boards' net profit jumped 163.1% to Rs 4.13 crore on 1.2% rise in net sales to Rs 83.37 crore in Q2 September 2017 over Q2 September 2016.
Incorporated in 2012, Genus Paper & Boards is engaged in manufacturing of multi-layer kraft paper & mild steel ingot.
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