India's JK Paper posts Q3 profit slump on soaring costs, weak pricing

JK Paper

29/01/2025 12:36

Jan 29 (Reuters) - India's JK Paper  JKPA.NS  reported a
fall in profit for a sixth straight quarter on Wednesday, hurt
by higher raw material costs and weak pricing power.
    The paper and packaging board maker's consolidated net
profit tumbled 73% year-on-year to 653.9 million rupees ($7.6
million) for the quarter ended Dec. 31.
    Indian paper makers have grappled with cheaper imports and
elevated prices of wood - a key raw material - over the past few
quarters. 
    Additionally, these companies have been forced to sell their
products at lower prices as demand remains subdued following a
post-pandemic surge.
    JK Paper's net revenue from operations fell 4.4% to 16.32
billion rupees during the quarter while total expenses rose 5%,
led by an 18% jump in raw material costs.
    Peer West Coast Paper Mills'  WSTC.NS  quarterly profit more
than halved, hurt by higher costs and cheaper imports.
    
($1 = 86.5370 Indian rupees)

 (Reporting by Aleef Jahan and Kashish Tandon in Bengaluru;
Editing by Sonia Cheema and Mrigank Dhaniwala)
 ((aleefjahan.cs@thomsonreuters.com))