JK Paper achieves high profitability
JK Paper numbers look better than expected. The group has reported a net profit of 56.32 crore for fourth quarter of 2016-2017. This was up by 278 per cent compared with the 14.89-crore profit in the corresponding period of fiscal 2015-2016. The company has recommended a dividend of 1.50 per share. This is equal to 29.50 crore on the equity share capital for the year ending 31 March, 2017.
17 May 2017 | 5444 Views | By Rahul Kumar
According to an official press release which stated, "income from operations was 787.93 crore. Harsh Pati Singhania, the vice-chairman and managing director, JK Paper, said: “The company has achieved its highest sales and profitability during the year. Increased volumes, better sales realisation and improved operating parameters have resulted in better performance throughout the year."
The per capita consumption of paper in India is 11 kg compared with 26 kg in Asia and 56 kg globally.
Last year, while addressing a gathering of paper traders in Mumbai, Singhania was unequivocal that India is the fastest growing paper market globally. He said, the Indian paper industry is growing at over 7% and projected to grow at over 4% per annum till 2030. This is translated into 20 million tonnes in 2020 and 27 million tonnes by 2030.
Meanwhile in a separate Century Textiles and Industries Ltd (CTIL), a part of the B.K. Birla Group, is in advanced talks to sell its paper business to JK Paper in a deal valuing the paper division at close to Rs5,000 crore by enterprise value, the Mint newspaper reported.