JK Paper Q1 net profit sinks 55% y-o-y to ₹139.70 Crore

25 Jul 2024 , 11:32 AM

On Wednesday (July 24), JK Paper Ltd announced a 54.8% year-on-year (YoY) fall in net profit to ₹139.7 Crore for the first quarter ended June 30, 2024.

JK Paper reported a quarterly net profit of ₹308.7 Crore in a regulatory filing. The company’s revenue from operations climbed by 8.2% to ₹1,713.7 Crore, up from ₹1,584.4 Crore the previous fiscal year.

EBITDA decreased by 41.3% to ₹280.4 Crore in the first quarter of this fiscal year, compared to ₹477.3 Crore in the same period last year. The EBITDA margin was 16.4% in the reporting quarter, compared to 30.1% in the same period last fiscal year.

Harsh Pati Singhania, Chairman and Managing Director of JK Paper, stated that the earnings were negatively impacted by a considerable decline in market prices combined with an increase in wood costs compared to the previous quarter. However, the company’s sales volume increased due to improved utilisation in the packaging board business.

The company acquired 15% equity shares in its subsidiary enterprises, Horizon Packs Private Ltd (HPPL) and Securipax Packaging Private Ltd (SPPL). Following this, HPPL and SPPL became completely owned subsidiaries of the corporation, he explained.

It is the first Indian tyre company to provide Radial tires for a whole variety of vehicles, including trucks/buses, LCVs, passenger cars, MUVs, and tractors. JK Tyre was also the first to introduce ‘Eco-friendly – Green tyre’, ‘Dual Contact – Aquasonic tyre’, and ‘High-Performance Tyres’ for motorsport in India.

At around 11.27 AM, JK Paper was trading 7.39% lower at ₹522.50, against the previous close of ₹564.20 on NSE. The counter touched an intraday high and low of ₹529.55, and ₹498.95, respectively.

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