JK Paper Q1 results: Net profit declines 55% to Rs 140.79 cr as prices fall

JK Paper Ltd on Wednesday reported a 55 per cent decline in consolidated net profit to Rs 140.79 cr in the June 2024 quarter, hit by a fall in market prices coupled with a surge in wood cost.

The company posted a consolidated net profit of Rs 312.56 cr in the corresponding period of the last fiscal, JK Paper said in a regulatory filing.

Consolidated revenue from operations in the quarter under review stood at Rs 1,804.47 cr against Rs 1,663.97 cr in the year-ago period, it added.

During the quarter, total expenses were higher at Rs 1,549.21 cr compared to Rs 1,238.34 cr in the year-ago period.

"The results have been adversely impacted due to a significant drop in market prices coupled with a surge in wood cost compared to the corresponding quarter," JK Paper Chairman & Managing Director Harsh Pati Singhania said.

The company, however, increased sales volume driven by higher utilisation in the packaging board business, he added.

JK Paper said in order to mitigate long-term raw material availability and cost increase, it has further stepped up its social farm forestry initiatives.