JK Paper results improve

JK Paper reported a 25% increase in consolidated net profit at Rs 170.17 crore for the fourth quarter ended March riding on higher sales volumes. The company had posted a consolidated net profit of Rs 136.07 crore in the corresponding period of previous financial year. This is mainly because paper demand is back to pre-Covid levels.

AS Mehta, president and director of JK Paper highlighted that the paper major has a good capex in the pipeline. JK Paper's Sirpur plant is expected to further scale upto 95%. This will add to volumes plus there is a strong demand for packaging board.

Meanwhile JK Paper slipped 3.10% to Rs 327.1 on 17 May. The stock was the fourth biggest loser in 'A' group.On the BSE, 93483 shares were traded on the counter so far as against the average daily volumes of 1.5 lakh shares in the past one month.

Aviral Bhatnagar, a venture capitalist said in a tweet, "Paper is becoming a silent cost killer for many industries." He added, "Prices are up 50-100% in just a year, going from Rs 25 kg to Rs 40-50 kg. Bhatnagar's assessment is, stocks like JK Paper are galloping but all the other industries that are deploying paper are beginning to see their margins erode. Be it: the food or publishing sector.