Paper manufacturer JK Paper today said its net profit jumped over sixfold to Rs 20.35 crore for the quarter ended on December 31, 2009, on the back of strong performance and cost control measures.
It had reported a net profit of Rs 3.5 crore for the quarter ended on December 31, 2008, the company said in a statement.
During the quarter under consideration, the total income of the company decreased marginally to Rs 311 crore as against Rs 313 crore in corresponding previous year.
"Strong performance by our board and packaging business and tight cost controlled measures taken by us has improved our profitability," JK Paper Managing Director Harsh Pati Singhania told PTI.
He said that board of directors also approved Rs 1,450– 1,500 crore expansion project for setting up a new pulp mill with a capacity of 2 lakh tonnes per annum and paper a capacity of 1.5 lakh tonnes per annum at at Rayagada, Orissa.
"This is likely to be commissioned in the second half of 2012," he added.
When asked about the fund raising, Singhania said that it would be through a mix of debt and equity in the ratio of 1.5:1 respectively.
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