JK Paper reports Q3 net profit at Rs 11.40 crore

Leading paper manufacturer, JK Papers today reported a standalone profit of Rs 11.40 crore in the third quarter ended December 2014 on the back of enhanced capacity and improved efficiency from its new plant in Odisha.

The company had posted a standalone net loss of Rs 39.38 crore in the October-December period last fiscal, JK Paper said in a statement.

Net sales during the period under review increased by 16.80% to Rs 544.73 crore as against Rs 466.36 crore in the year-ago quarter.

Commenting on the improved performance, JK Paper President A S Mehta said: "This is because of capacity expansion as we have started a new plant in Odisha. The new plant has increased our volume, which has resulted in our topline growth and it is efficient on raw material and power consumption."

The company, which controls around 26% market share in the branded paper category, said it would continue to grow further.

"The Indian paper industry is growing between 6-8% and we are growing above 20 due to our brand strength. We see a higher degree of growth," Mehta added.

Shares of the company were trading 6.51% up at Rs 36.80 per scrip during afternoon session on the BSE.