AP Paper in the red: Q2 net loss at Rs 45 cr

Net sales for quarter stands at Rs 246.49 crore, as compared with Rs 239 crore in corresponding quarter of last year

Pulp and paper products manufacturer Andhra Pradesh Paper Mills Limited (APPML), a group company of US-based International Paper (IP), has witnessed a net loss of Rs 45 crore for the second quarter ended September 2013, as against a net profit of Rs 7.55 crore during the same period a year ago.

Net sales for the quarter stood at Rs 246.49 crore, as compared with Rs 239 crore in the corresponding quarter of last year, reflecting a growth of 3.13%.

“Based on the internal assessment of certain disputed matters relating to prior years and based on the legal opinion obtained on such matters, the company has made a provision of Rs 16.19 crore (Rs 15.61 crore towards interest and Rs 58.01 lakh as taxes) during the 15-month period ended March 31, 2013),” APPML said.

Also, planned annual maintenance shutdown for 22 days was taken up and completed during the current quarter, which had consequential impact on the financial results for the quarter, it added.

International Paper had completed the acquisition of a 75 percent stake in APPML in October 2011. The total cost of the acquisition stood at about Rs 1,881 crore. In September this year, APPML has inaugurated a Rs 100-crore Bielomatick A4 sheeter facility designed to covert paper reels into A4, A3 and fullscape size products.

Andhra Pradesh Paper Mills’ scrip ended the trade at Rs 282 on the BSE on Tuesday, down 3.98%, over the previous close of 293.70 a share.