JK Paper rises after Q2 PAT soars to Rs 324 cr

JK Paper gained 1.06% to Rs 414.25 after the company reported a consolidated net profit of Rs 324.23 crore in Q2 FY23, steeply higher than Rs 118.39 crore posted in Q2 FY22.

Revenue from operations soared 74.1% to Rs 1,644.10 crore in Q2 FY23 as against Rs 944.37 crore reported in the corresponding quarter previous year.

Consolidated profit before exceptional items surged to Rs 484.36 crore in quarter ended 30 September 2022 from Rs 172.61 crore posted in the same period last year. The company reported an exceptional item of Rs 33.64 crore in Q2 FY23.

EBITDA zoomed 130.21% to Rs 587.13 crore in Q2 FY23 from Rs 255.04 crore reported in the same period last year.

Commenting on the results, Harsh Pati Singhania, vice chairman & managing director, said, The company was able to deliver an improved performance on a quarter to quarter and YoY basis due to growth in volume driven by ramp up of new Packaging Board capacity coupled with overall better realisation despite adverse impact of higher input costs. The finance cost was also lower on account of effective working capital management and reduction in interest rate through negotiation.

He further added, The demand for Paper and Board remained strong and the company maintained its leadership position. The Sirpur Paper Mills, a step down subsidiary, contributed to the company's overall profitable growth with higher volume, improved efficiencies and higher sales realisation.

JK Paper said that it continues to focus on social farm forestry initiatives at all the plant locations in order to procure adequate raw material at economical cost besides improving green cover in the states of Odisha, Gujarat, Andhra Pradesh, Telangana and Maharashtra.

JK Paper is India's largest producer of branded papers and a leading player in coated papers and High-end packaging boards.

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