JK Paper slips 7% as Q2 profit falls 58% to Rs 129 crore, expenses up 15%

JK Paper logged consolidated total income in the second quarter stood at Rs 1,714.88 crore as compared to Rs 1,708.81 crore in the year-ago period

JK Paper shares slipped 6.7 per cent in Tuesday's trade (November 5) and registered an intraday low of Rs 426 per share on NSE. The stock saw sharp selling after the company posted a 58 per cent decline in consolidated net profit to Rs 128.85 crore in the second quarter as compared to Rs 305.68 crore a year ago.

 

Around 10:04 AM, JK Paper shares were down 2.78  per cent at Rs 444 per share. In comparison, the NSE Nifty was up 0.01 per cent at 23,997.15. The market capitalisation of the company stood at Rs 7,522.31 crore. The 52-week high of the stock was at Rs 638.75 per share on NSE and 52-week low of the stock was at Rs 319.10 per share on BSE.

 

JK Paper reported its Q2 numbers, after market hours, on Monday. Its revenue from operations for the quarter under review stood at Rs 1,777.48 crore as compared to Rs 1,749.77 crore a year ago, up 1.58 per cent. 

 

The company logged consolidated total income in the second quarter stood at Rs 1,714.88 crore as compared to Rs 1,708.81 crore in the year-ago period.

 

Meanwhile, the total expenses were also higher at Rs 1,569.63 crore as compared to Rs 1,368.23 crore in the same period a year ago, up 14.7 per cent.

 

As per the filing, for the half year ended September 2024, the consolidated turnover of JK Paper stood at Rs 3,582 crore. The company's Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 605 crore.  

 

“The results have been primarily affected due to continuing high wood cost. The sizeable increase in imports at much lower prices has significantly impacted volume and realisation in the Printing & Writing and Packaging Board Segment," said Harsh Pati Singhania, chairman & managing director, JK Paper.

 

JK Paper is one of India’s leading paper manufacturers, established in 1943 and headquartered in New Delhi. The company specialises in producing a wide range of paper products, including writing and printing papers, newsprint, and packaging materials. 

 

It operates two large paper mills in Rayagada (Orissa) and Barmana (Himachal Pradesh), which are among the largest in the country, producing paper from wood, bamboo, and recycled wastepaper. The company’s product offerings cater to a variety of sectors such as education, publishing, packaging, and industrial applications. 

 

In the past one year, JK Paper shares have gained 19.4 per cent against Nifty's rise of 24 per cent.