India's JK Paper posts steep drop in profit as costs bite

JK Paper

04/11/2024 13:59

BENGALURU, Nov 4 (Reuters) - India's JK Paper  JKPA.NS 
reported a fall in profit for a fifth-straight quarter on
Monday, hit by rising prices of wood - a key raw material used
to manufacture paper and packaging materials.
    The company said its consolidated net profit fell 57% to
1.29 billion rupees ($15.3 million) in the quarter ended Sept.
30.
    JK Paper has been grappling with rising wood prices in the
last few quarters that have bumped up input costs.
    The industry has also struggled with lower selling prices of
its products as demand remains subdued following a post-pandemic
surge.
    The company's expenses rose nearly 15% to 15.70 billion
rupees, mainly due a 21% rise in input costs.
    Its net revenue rose 2% to 16.83 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.
    Peer Emami Paper Mills  EMAP.NS  is set to report its
quarterly results later this week.
    JK Paper's shares closed 2% lower ahead of its results.
    
 ($1 = 84.0860 Indian rupees)

 (Reporting by Nishit Navin and Ashna Teresa Britto in
Bengaluru)
 ((Nishit.Navin@thomsonreuters.com;))