JK Paper and TNPL register profits in Q2
Driven by growing demand in the local market, better realization, anti-dumping policies etc., JK Paper nearly doubled its standalone net profit to Rs 109.57 crore for the second quarter ended September 30. Meanwhile, TNPL reported a net profit of Rs 6.52 crore when compared with a net loss of Rs 13.2 crore in the same period last year.
20 Nov 2018 | By Sriraam Selvam
Speaking to a business daily, HP Singhania vice chairman and managing director of JK Paper said, "Market continues to remain strong with growth in volume and sales realisation. Better operating efficiencies and lower finance cost due to deleveraging have also contributed to improved performance on quarter to quarter basis.”
TNPL turnaround showed revenue from operations grow at 87% for the quarter at Rs 1005.7 crore when compared with Rs 537.94 crore in the second quarter of previous fiscal which the company attributed to strong demand in the market.
Its paper production during the second quarter was 1,06,749 tonnes as against 87,164 tonnes. Packaging Board production was 47,487 tonnes against 28,659 tonnes in the corresponding quarter of the previous year.
The quarter also saw JK Paper take possession of the Sirpur Paper Mills and according to the company, refurbishment and overhaul of plant and machinery are underway.
According to a CARE Report, ‘the domestic demand for paper in India grew from 9.3 million tonnes in FY08 to 17 million tonnes in FY17 at a CAGR of 6.9%. The report expects overall demand for paper to touch 18.5 million tonnes in FY19 and 20.7 million tonnes in FY20. The report also states that Indian paper industry accounts for approximately 4% of the world’s production of paper with Maharashtra being the largest producing state flowed by Andhra Pradesh, Gujarat, Uttar Pradesh and West Bengal.
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