JK Paper net sales up 58%

JK Paper Limited, one of India’s largest Paper Companies, has reported a Gross Sales of Rs 331.62 Crore for its second quarter ended September 30,2008.

This is 49 per cent higher compared to corresponding quarter last year.  Profit before interest, depreciation and tax (PBIDT) was Rs. 48.36 crore, which is higher by 26 per cent and the net profit was Rs 9.07 crore.

The increase in sales and PBIDT is due to increase in sales volume from the new packaging board business and better profitability on coated paper.
 
Production for the quarter stood at 64,169 tonnes, higher by 32 per cent and Sales stood at 68,171 tonnes — higher by 41per cent compared to corresponding quarter last year.
 
Shri Harsh Pati Singhania, managing director of JK Paper Limited said “demand for the company’s existing as well as new products was strong resulting in highest ever quarterly sales. The profit margins of the paper business including coated paper continued to be satisfactory. The Packaging Board Plant reached a capacity utilisation of 96 per cent during the quarter. The Company hopes to further optimise its product mix and increase the share of value added products.”
 
He added that the interest and depreciation were higher by Rs 7.01 crore in the quarter compared to corresponding quarter last year due to commencement of Packaging Board operations. Profit was also impacted, due to provisioning of unrealised foreign exchange loss of Rs 3.33 crore during the quarter.