JK Paper share price tanks 11% on posting 72% decline in Q3 net profit

JK Paper shares plunged 10.8 per cent on Thursday, logging an intraday low at Rs 340.05 per share. The selling pressure in the stock came after the company posted weak Q3FY25 results. 

 

Around 9:32 AM, JK Paper share price was down 5.96 per cent at Rs 358.85 per share on BSE. In comparison, the BSE Sensex was up 0.01 per cent at 76,542.37. The market capitalisation of the company stood at Rs 6,079 crore. The 52-week high of the stock was at Rs 639.15 per share and the 52-week low was at Rs 319.2 per share. 

 

On Wednesday, after market hours, JK Paper reported a 72 per cent decrease in consolidated net profit of Rs 65.39 crore as compared to a profit of Rs 235.11 crore a year ago. The revenue from operations of the company slipped 4.4 per cent to Rs 1,631.99 crore for the third quarter compared to Rs 1,706.22 crore in the year-ago period.

 

As per the filing, the company's Earnings before interest, tax, amortisation and depreciation (Ebitda) for the quarter stood at Rs 189.77 crore.  

 

"Sharp rise in imports at low price adversely affected sales volumes and realisation in Paper and Board. This coupled with continuing high wood costs has resulted in a significant fall in profits," said Harsh Pati Singhania, Chairman & Managing Director, JK Paper. 

 

The company's board also approved the acquisition of a majority stake in Quadragen Vethealth Private Limited. 

 

JK Paper entered into a share purchase and shareholders’ agreement for the acquisition of 65 per cent shares of Quadragen Vethealth upfront and the balance of 35 per cent to be acquired within a period of four years. 

 

Quadragen Vethealth is engaged in the business of manufacturing, marketing, and exporting Animal Nutrition Products including feed additives and growth promoters. 

 

JK Paper is a branded copier paper in India and a producer of coated paper and packaging products. The company products include copiers, bonds, coated papers, virgin fiber packaging boards, high-end maplitho, food-grade papers, boards, corrugated boxes, mono cartons, and labels.  

 

In the past one year, JK Paper shares have lost 12.3 per cent against Sensex's rise of 7.5 per cent.