JK Paper profit sees three-fold rise

As per a regulatory filing, JK Papers had posted a consolidated net profit of Rs 33.4 crore in the same quarter last fiscal.

Meanwhile the net sales stands at Rs 945.75 crore in September 2021 up 48.16% from Rs. 638.34 crore in September 2020. Likewise EBITDA stands at Rs. 237.46 crore in September 2021 up 51.51% from Rs. 156.73 crore in September 2020.

Last month, WhatPackaging? magazine has reported about the Gujarat plant which "its full capacity will give additional turnover of Rs 1200 crore per year." At that time, AS Mehta, president and director, JK Paper had mentioned "when such a big project is commissioned, the ramp-up takes time. Therefore this quarter and the December quarter volumes may be small but thereafter there would be a sizable volume coming from the Gujarat facility.

Likewise JK Paper's Sirpur facility which has 80 percent capacity utilisation for this quarter will also give additional turnover. "At 80 percent capacity, the quarterly turnover would be close to Rs 150 crore from the Sirpur facility," Mehta added.

Mehta mentioned that JK Paper expects revenues above Rs 3000 crore for FY22 and margins would be in the range of 23-24 percent.

The company further said operations of its plantation in Myanmar, which is a jointly controlled entity through its subsidiary in Singapore, with regards to maintenance of biological assets has been scaled down temporarily due to Covid-19, although access to the site is not affected.  JK Paper has an investment of Rs 24.13 crore at the plantation.

"The operations will be resumed once the COVID risks subside. The management is continuously assessing the situation and does not foresee any significant financial impact on this account," a press note stated.