JK Paper Ltd, on Tuesday, posted a consolidated net profit after tax of Rs 280 crore for the March quarter, helped by higher prices for its papers and packaging boards and as some input costs eased. This is 64.7 per cent rise from Rs 170 crore a year ago, the company statement said.
The company’s consolidated total income rises by 29.22 per cent to Rs 1,760 crore for the March quarter as compared to Rs 1,362 crore in the year-ago period.
In a regulatory filing, JK Paper said, “The board of directors recommended a final dividend of Rs 4/- per Equity Share of Rs 10/- each for the financial year ended 31 March, 2023.”
The said dividend if declared by the Members of the Company at the ensuing Annual General Meeting (AGM), will be credited/dispatched within four weeks of the conclusion of said AGM.
JK Paper and other paper companies have benefited from rising demand from offices as work-from-office slowly reverts to the norm as well from e-commerce and other companies to substitute plastic, especially after India banned single-use plastics in mid-2022, for packaging and products such as drinking cups.
Earlier this month, Andhra Paper Ltd said its fourth-quarter profit more than doubled, while Tamil Nadu Newsprint and Papers Ltd, West Coast Paper Mills Ltd and TCPL Packaging are yet to report.
The strong demand has also helped paper companies push up their prices, helping their net sales realization, or NSR.
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"Higher volume coupled with increased realisation led to better operating performance during the year," said JK Paper, which has its own mills and has bought a majority stake in two packaging companies last year.
Its total costs rose nearly 26 per cent in the fourth quarter, as some inputs costs eased. The rise in its expenses has previously slowed from 109 per cent in the first quarter to about 40% in the third quarter.
Shares of JK Paper had fallen 6.7 per cent during the quarter ended March, and dipped 8.5 per cent so far this year, compared with gains of 2.5 per cent to 10.5 per cent in the stocks of Andhra Paper, Tamil Nadu Newsprint, West Coast Paper and TCPL.
Higher sales realisation over the corresponding quarter led to better performance despite increased input costs and reduced selling price in certain products.
(With inputs from Reuters)
(With inputs from Reuters)