Paper mills post steady earnings

"The company had posted a net profit of Rs 18.1 crore in the same period last fiscal. The operational improvement in performance is due to the benefits derived from the company's new pulp and paper plant at its Odisha unit, coupled with growth in market share in its mainstay office papers business and a richer product mix," said JK Paper chairman and managing director, Harsh Pati Singhania.

 

Singhania added that the company has been able to increase its exports despite tough overseas markets. JK Paper will raise foreign currency convertible bond of USD 25 million (Rs 166 cr) to meet its expenditure and payment of the external commercial borrowings (ECBs).

 

Meanwhile performances in the paper segment have been steady.

 

Newspaper major, Tamil Nadu Newsprint and Paper (TNPL) the Q2FY16 YoY total income was up 17 percent at Rs 555 cr; while Pudumjee Pulp and Paper Mills’ Q2 net profit at Rs 7 cr versus with a total income of Rs 74.6 cr versus. International recorded a Q4 net profit of Rs 20.4 crore with a total income flat at Rs 302 cr.

 

The Ballarpur Industries (BILT) matter continues to hang in a balance. With company yet to sell its Malaysian forest arm, the company has to arrange Rs 850 crore as repayment. This has resulted in a dip in BILT’s balance sheet – because of which is has had three consecutive quarters of losses in 2015-16.