JK Paper Q3 net profit jumps 72% to Rs 120.26 crore

JK Paper Tuesday reported a 72.26 per cent jump in standalone net profit to Rs 120.26 crore for the third quarter ended December 2018 on account of improved realisation, better operating parameters and reduced finance cost.

The company had posted a net profit of Rs 69.81 crore in the October-December quarter last year.

Total income during the quarter under review rose 10.94 per cent to Rs 883.11 crore. It stood at Rs 796.01 crore in the December quarter of 2017-18, JK Paper said in a BSE filing.

The company said improved realisation, better operating parameters and reduced finance cost contributed to increased profitability during the quarter.

The improved market conditions helped growth in sales realisation across the board, Vice Chairman and MD H P Singhania said.

"Better operating efficiencies and lower finance cost due to deleveraging have contributed to improved performance on a quarter to quarter basis. The company continues its focus on farm plantation in close proximity to the mills resulting in lower logistics cost," he added.

During the quarter, the company issued 33,500 rated, unlisted, secured, redeemable, non-convertible debentures of face value of Rs 1 lakh each aggregating to Rs 335 crore on a private placement basis.

JK Paper Ltd is the market leader in branded copier paper in India and amongst the top producers of coated paper and packaging boards in the country.

The company is following a policy of focusing on value added products like copier, bond paper, security paper, coated paper, virgin fibre packaging boards and high end maplitho paper, it said.

Shares of JK Paper settled at Rs 134.30 on BSE, down 1.18 per cent from the previous close.