JK Paper posts Q1 profit of Rs 16.78 cr

JK Paper Ltd today reported standalone net profit of Rs 16.78 crore for the first quarter ended June 30, 2015-16 on increased productivity and effective utilisation of raw materials.
It had posted a net loss of Rs 22.53 crore for the April- June period of previous fiscal, 2014-15, JK Paper said in a statement.
The company's standalone net sales stood at Rs 682.73 crore in the first quarter of the current fiscal as against Rs 573.88 crore in the year-ago period.
"Shift from loss to profit is result of three measure factors - 19 per cent volume increase which gave us additional profit, energy cost has come down because of the new plant and effective utilisation of raw materials. Production and sales have gone up during the quarter, which gave us advantage," JK Paper President A S Mehta told PTI.

He further said that JK Paper is growing 19 per cent by value and 21 per cent by volume, which more than the industry average of 6 to 7 per cent.
"We are experimenting in the product mix. We have started maplitho paper in which we were not there. In copier section we have new brands. This is a continuous exercise and would keep on adding new products," Mehta said.

Over the capital expenditure, he said that the company has already done in FY 2013-14 by adding more capacity at its new Orissa plant and this is time to take advantage of that.

"In the coming quarter, we would try to add more market share in copier section up to 28 per cent and to increase market share in coated paper from present 10 to 11 per cent," Mehta said.
Apart from that, the company would also explore overseas market for its copier in Australia and Africa.
JK Paper Vice Chairman & Managing Director Harsh Pati Singhania said: "The significant improvement in performance is due to higher sales volumes and major improvements in operating efficiencies emanating from the Company's new plant at Jaykaypur, Odisha."
Meanwhile, in a separate filing JK Paper informed the BSE that its board in meeting held today approved to "issue of 1,19,10,000 Equity Shares of Rs 10/- each at a price of Rs 42/- per share" to the promoter and one or more constituents of the promoter Group on preferential basis.

However, it would be subject to requisite approval of the shareholders of the company and other authorities, it added.
JK Papers' stock closed at Rs 42.50, down 0.47 per cent, on the BSE.