JK Paper reports decline of 51% in net profit at Rs 64.59 crore for Q3

JK Paper Ltd on Wednesday reported a decline of 51 per cent in its consolidated net profit at Rs 64.59 crore for the third quarter ended December.

The company had posted a net profit of Rs 131.85 crore in the October-December quarter a year ago, JK Paper said in a regulatory filing.

Its total income was down 9.28 per cent to Rs 770.45 crore during the period under review as against Rs 849.25 crore in the corresponding period of the last fiscal, the company said.

Total expenses of JK Paper, maker of branded copier paper, coated paper and packaging boards, was at Rs 667.45 crore as against Rs 660.89 crore.

The company's performance on a consolidated basis was impacted by a temporary stoppage of production at The Sirpur Paper Mills, a step-down subsidiary, due to unfavourable market conditions, JK Paper said.

The production has since been resumed. The on-going packaging board project at Unit CPM is progressing well. The company continues to focus on its plantation programme to procure adequate raw material at economical cost, the company said in a post earning statement.

Commenting on the results, JK Paper Vice Chairman and Managing Director Harsh Pati Singhania said: Paper industry was one of the most affected sectors due to lockdown but now there is a steady revival of demand across all major segments which will improve further after opening of schools, colleges and educational institutions. "

"This quarter's results come on the back of higher production and sales volumes despite low selling prices.

Shares of JK Paper Ltd on Wednesday settled at Rs 126.30 apiece on the BSE, up 0.36 per cent from its previous close.