India's JK Paper posts lower Q1 profit as expenses jump

Andhra Paper

24/07/2024 12:21

BENGALURU, July 24 (Reuters) - 
    Indian paper and packaging board maker JK Paper  JKPA.NS 
reported a fourth straight decline in quarterly profit on
Wednesday, hurt by surging costs.
    The company's consolidated net profit after tax fell nearly
55% year-on-year to 1.40 billion rupees ($16.7 million) for the
quarter ended June 30.
        Higher raw material costs led to a 25.1% rise in
expenses, pressuring the bottomline, while net revenue rose 8.2%
to 17.14 billion rupees. 
  
        JK Paper, which supplies office paper, coated paper,
writing and printing paper, and packaging boards, has customers
in more than 60 countries, according to its website.
        A significant drop in market prices coupled with a surge
in the cost of wood adversely affected the company's performance
during in the first quarter, it said in an exchange filing.
  
    The company's managing director in the previous quarter said
that selling prices continued to remain subdued due to rising
imports. 
    Peer Emami Paper Mills  EMAP.NS  will report its quarterly
results next month.
        JK Paper's shares ended 1.7% higher ahead of its
results.
  


($1 = 83.6860 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Sonia
Cheema)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))