India's JK Paper Q3 profit more than doubles on robust demand

JK Paper

06/02/2023 13:26

BENGALURU, Feb 6 (Reuters) - India's JK Paper Ltd
 JKPA.NS  on Monday reported its profit more than doubled in the
third quarter, on the back of higher demand for copier papers
and packaging boards from schools and offices post-pandemic.  
    The paper producer said its consolidated net profit after
tax for the quarter ended Dec. 31 was at 3.29 billion rupees 
($39.79 million), from 1.50 billion rupees a year earlier.
    Demand for products like documentation papers, photocopy and
multipurpose papers remained strong during the quarter, as
offices followed work-from-office and hybrid models after the
lockdowns were lifted.
    The company's revenue from its paper and board business
surged 59.6% to 16.33 billion rupees in the quarter. Overall net
revenue from operations jumped nearly 61% to 16.43 billion
rupees.
    "Higher capacity utilization and growth in sales volume
across all segments helped the company to improve its market
share and deliver better performance," Harsh Pati Singhania,
vice chairman and managing director at JK Paper, said in an
exchange filing. 
    JK Paper-owned Sirpur Paper Mills contributed significantly
to the company's overall profitable growth, Singhania added.
    The company's market share in the copier paper and packaging
segments has been growing due to strong demand from offices and
shift to sustainable alternatives for packaging, analysts said.
    JK Paper has also been expanding the business through
acquisitions, including its purchase of 85% stake each in
Horizon Packs and Securipax Packaging last year, with the
remaining 15% to be bought within the next three years. 
    The company also declared an interim dividend of four rupees
per share to be paid on or before March 7.
($1 = 82.6750 Indian rupees)
 (Reporting by Dimpal Gulwani; editing by Eileen Soreng)
 ((Dimpal.Gulwani@thomsonreuters.com;))