Andhra Paper to undertake annual outage at Andhra-based manufacturing facility

Andhra Paper said that annual outage (maintenance} has been planned from 29 November 2021 to 22 December 2021 (both days inclusive) in the manufacturing facility located in Kadiyam, East Godavari District, Andhra Pradesh.

The estimated loss of production would be around 185 tons per day, the comapany said.

The scrip was currently trading 1.30% lower at Rs 231.90 on the BSE.

Last week, Care Ratings reaffirmed its credit rating on the bank facilities of Andhra Paper worth Rs 205 crore. The ratings agency reaffirmed the company's long-term rating at 'CARE AA-' and the short-term rating at 'CARE A1+'.

Care Ratings said that the ratings assigned to the bank facilities of Andhra Paper (APL) continue to derive strength from experienced promoters, long-standing track record in the Indian paper industry with integrated nature of operations and well-established distribution network and other initiatives taken by the management ensuring raw material self-sufficiency.

The ratings factor the comfortable capital structure and strong liquidity profile with availability of surplus liquid investments against low debt levels and cushion in the fund-based working capital limits utilisation. The ratings also take into cognizance of the considerable improvement in the performance of the company during Q1 FY22 with demand picking up slowly through the quarters.

The ratings are, however, constrained by significant moderation in the total operating income and profitability during FY21 due to adverse impact of Covid-19 pandemic leading to decline in sales volume and sales realisation of its paper products. The ratings continue to remain constrained by exposure to volatility in raw material prices and cyclicality attached to the paper industry.

Andhra Paper is engaged in manufacturing of writing, printing and cut-size papers for foreign and domestic markets and offers a wide range of high-quality specialty grade products for a diverse range of applications.

The company reported a net profit of Rs Rs 18.87 crore in the quarter ended September 2021 as against net loss of Rs 15.93 crore during the previous quarter ended September 2020. Sales rose 126.05% to Rs 349.40 crore in Q2 FY22 from Rs 154.57 crore in Q2 FY21.

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