India's JK Paper posts fall in Q2 profit on lower demand

Andhra Paper

03/11/2023 12:30

BENGALURU, Nov 3 (Reuters) - India's JK Paper  JKPA.NS 
on Friday reported a drop in quarterly profit for the first time
in 11 months, hurt by the lower demand for its coated paper and
packaging board, and higher input costs.
    The paper producer's consolidated net profit after tax fell
6.8% to 3.02 billion rupees ($36.3 million) for the quarter
ended Sept. 30.
    Paper makers are experiencing subdued demand for photocopy
and multipurpose papers, following a surge in the previous
quarters when people started returning to offices after the
pandemic.
    Profit fell on lower sales realization of coated paper and
packaging board, the company said, indicating lower prices.  
    Total expenses rose about 13% including a near 29% jump in
input costs. 
    Consolidated net revenue from operations inched up 0.4% to
16.50 billion rupees.
    "Of late, the demand of packaging board has started
recovering and there has been some increase in selling price
across all product segments,"  Managing Director Harsh Pati
Singhania said in a statement. 
    Last month, Andhra Paper  ANDA.NS  reported a near 12% fall
in September-quarter profit, while Tamil Nadu Newsprint and
Papers  TNNP.NS  and West Coast Paper Mills  WSTC.NS  are due to
report results on Nov. 10 and Nov. 9, respectively.
    Shares of JK Paper closed 0.24% higher ahead of the results.
The stock is down 6.5% this year.
    

($1 = 83.2466 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Dimpal.Gulwani@thomsonreuters.com;))