JK Paper stock tanks 13% on weak June quarter show; profit plunges 55% | News on Markets
JK Paper stock tanks 13% on weak June quarter show; profit plunges 55% | News on Markets
JK Paper in focus: Shares of JK Paper plunged as much as 13.11 per cent to hit an intraday low of Rs 489.95 per share.
The fall came on the back of weak results in the June quarter of financial year 2025 (Q1FY25).
The company’s net profit dropped 55 per cent year-on-year (Y-o-Y) to Rs 140.8 crore in the June quarter of financial year 2025, as against a net profit of Rs 312.6 crore in the same quarter a year ago (Q1FY24).
“The results have been adversely impacted due to a significant drop in market prices coupled with a surge in wood cost as compared to the corresponding quarter. The Company however increased sales volume driven by higher utilisation in Packaging Board Business,” said Harsh Pati Singhania, chairman & managing director of JK Paper.
However, JK Paper’s revenue from operations rose 8.4 per cent to Rs 1,804.5 crore in Q1FY25, as against Rs 1,664 crore a year ago (Q1FY24).
Meanwhile, the company’s total expenses were higher at Rs 1,549.2 crore, as opposed to Rs 1,238.3 cr a year ago.
Additionally, the company has acquired remaining 15 per cent equity shares of its Subsidiary Companies, Horizon Packs Pvt. Ltd (HPPL) and Securipax Packaging Pvt. Ltd (SPPL). Post this, HPPL and SPPL have become wholly owned subsidiaries of the company.
“In order to mitigate long term raw material availability and cost increase, the Company has further stepped up its social farm forestry initiatives,” Singhania added.
Founded in 1962, JK Paper is a prominent player in the office paper, coated paper, and packaging board sectors. The company offers a diverse range of products including Copier, Bond, Security, Coated Papers, Virgin Fiber Packaging Boards, High-end Maplitho, Food Grade Papers, Boards, Corrugated Boxes, Mono Cartons, and Labels.
JK Paper operates three facilities: two major integrated Pulp and Paper Mills located at Rayagada (Odisha) on the Eastern coast and Songadh (Gujarat) on the Western coast of India. Recently, the company acquired a third unit in Sirpur (Telangana). Together, these facilities enable JK Paper to achieve an annual combined capacity of approximately 600,000 tonnes.
In addition to catering to the domestic market, JK Paper exports its branded Copier Papers and Packaging Boards to 35 countries worldwide, spanning regions such as the USA, Middle East, Southeast Asia, SAARC nations, and various countries in Africa.
The market capitalisation of the company is Rs 8,832.64 crore, according to Bombay Stock Exchange (BSE). The company falls under BSE SmallCap category.
At 1:07 PM, shares of JK Paper were trading 7.47 per cent lower at Rs 521.75. In comparison, BSE Sensex was trading 0.16 per cent lower at 80,018.59 levels.
First Published: Jul 25 2024 | 1:19 PM IST
