Profit Margins Slide

Substantial reduction in demand for paper, increased cost of production and unremunerative selling price of finished goods adversely affected the companys working during the six months to December 1996. During the period, turnover fell by 14.1 per cent to Rs. 24.44 crore. With expenditure exceeding sales growth rate, profits and profit margins tumbled like nine pins. The gross profit margin declined to a negligible 1.6 per cent from a healthy 18.09 per cent in the previous half. Gross profit was meagre at Rs 0.39 crore compared to Rs 5.15 crore. At net level, it suffered a net loss of Rs 1.11 crore as against a net profit of Rs 3.85 crore in the previous half.

Market price Rs 8.25, EPS: Rs -1.55, 52-week high/low: Rs 25/6