TNPL results buoyed by packaging segment
Tamilnadu Newsprint And Papers Ltd (TNPL) has reported a total revenue of Rs 1,388 crore for the quarter that ended on 30 September, 2022, as against Rs 942 crore in the corresponding quarter of the previous year. The total revenue has increased by 47% as compared to the corresponding quarter of the previous year and reported a 22% increase as compared to the preceding quarter Q1FY23.
19 Nov 2022 | By Abhay Avadhani
The company earned profit before interest, depreciation and tax (EBITDA) of Rs 283 crore for the quarter that ended on 30 September 2022. The EBITDA increased by 169% as compared to Q2FY22 and reported a 60% increase as compared to Q1FY23.
The company’s mission is to be the manufacturer of paper and paperboards, to the tune of 1.0 million tonnes by 2030.
The TNPL numbers are staggering. During the last year, TNPL has produced 3,88,881 metric tonnes of paper and achieved paper sales of 4,38,010 metric tonnes. With the commissioning of a multilayer double-coated board plant, TNPL has made a foray into the packaging board segment. TNPL has produced 1,83,770 metric tonnes of packaging board and achieved packaging board sales of 1,84,546 metric tonnes. 3,06,591 tonnes of Hardwood Pulp, Chemical Bagasse Pulp and Deinked Pulp were produced during the year.
TNPL commenced newsprint and printing and writing paper production in 1984 with a capacity of 90,000 metric tonnes per annum. The company enhanced the capacity to 4,00,000 metric tonnes per annum in four phases. During 2016, the company had set up a state-of-the-art packaging board plant with an annual capacity of 2,00,000 metric tonnes per annum in Mondipatti village, Manaparaitaluk, Trichy district and enhanced the total capacity to 6,00,000 metric tonnes per annum.
Today, TNPL has emerged as the third largest player in the Indian paper industry. The pulping capacity has been increased from 300 tonnes per day in 1984, to 1,180 tonnes per day.
Dr M Sai Kumar, chairman and MD, TNPL, shared with shareholders during the company's AGM at the end of September that "The year 2021-22 began on a slow note with poor demand. During the second wave of Covid, international and domestic markets again went into a tailspin. The company was able to keep all the machines running due to the extensive dealer network within India and our wide presence in the international markets." He added, "With the successful nationwide Covid vaccination program and efforts of the government, the country was able to contain the pandemic and gradually schools, colleges and offices started opening up."
Towards the end of last quarter of the year, the education markets were buoyant and TNPL was able to sell all the "accumulated inventory and achieved zero stocks of printing and writing paper at Unit I after eight years."
Sai Kumar added, "The year was reasonably good for the packaging segment. While order books and demands were strong, there were pressures due to very high raw material costs and logistics issues. Covid-19 led to a delay in the installation of our new pulp mill and consequently our proposed shift towards 100% virgin grades on the packaging board machine got affected. However, as a strategy, we gradually increased our focus towards the fast-growing high value-added cup stock segment which uses more of our indigenous pulp."
TNPL has developed certain grades of industrial papers like sublimation papers, cup stocks and papers for offline coating applications to ensure greater regularity of demand. Increased focus is being put to ensure higher penetration in these segments.
Sai Kumar said, "TNPL has exported 1,44,000 metric tonnes of paper and 21,766 metric tonnes of board - 33% of total paper sales and 12% of total board sales is by way of exports to around 30 countries."