India's JK Paper posts Q3 profit fall on higher expenses

JK Paper

07/02/2024 12:16

BENGALURU, Feb 7 (Reuters) - Paper and packaging board
maker JK Paper  JKPA.NS  reported a plunge in third-quarter
profit on Wednesday, hurt by surging input costs.
    Consolidated net profit for the three months ended Dec. 31
fell 28.6% year-on-year to 2.35 billion rupees ($28.3 million),
its second straight quarterly profit drop.
    Input costs for JK Paper ballooned almost 24% to 8.97
billion rupees, echoing a similar rise in expenses for rival
paper-maker Andhra Paper  ANDA.NS , which reported a 51.5% fall
in its profit in the quarter.
    The climb in raw material costs led to JK Paper's total
expenses climbing nearly 21%, far outweighing a 4% climb in its
total income.
    Sales of its packaging products, which include boxes and
cups for food, beverages and fast-moving consumer goods, rose
during the October-November festive season when consumers
typically splurge on non-discretionary products.
    Still, revenue growth was restrained as elevated inflation
levels slowed consumer spending through the last year.
    JK Paper's total income growth had slowed to 11.9% in the
April-June quarter and 1% in the July-September quarter.
    Peer Emami Paper Mills  EMAP.NS  reported a nearly 28-fold
jump in profit, helped by a slump in expenses.
    
($1 = 82.9744 Indian rupees)

 (Reporting by Manvi Pant and Varun Vyas in Bengaluru; Editing
by Janane Venkatraman)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))