New Delhi, July 31 (IANS) Paper manufacturer JK Paper on Monday said its net profit after tax (PAT) zoomed by 125 per cent for the first quarter (Q1) ended June 30.
The company said its PAT for the quarter under review stood at Rs 60.11 crore — up 125.46 per cent — from Rs 26.66 crore reported during the corresponding period of last year.
According to the company, its total income from operations rose by 4.76 per cent to Rs 671.77 crore from Rs 641.25 crore reported during Q1 of the last fiscal.
“Enriched product mix, wider distribution and higher operating efficiencies helped continuous improvement in profitability on quarter-to-quarter basis,” said Harsh Pati Singhania, JK Paper’s Vice Chairman and Managing Director.
Commenting on the impact of Goods and Services Tax on the paper industry, Singhania said: “So far it’s been fairly smooth. In the long run, it would not only correct the trade practices but also reduce logistics cost and benefit the consumers.”
The company said it has reduced its finance costs significantly by efficient working capital management, reduction in total debt and reduced rate of interest.
“JK Paper has drawn a plan to further reduce its borrowing costs by substitution of the high cost loans by fresh issue of NCDs (non-convertible debentures) of Rs 335 crore which will also have longer maturity to provide better liquidity,” it said in a statement.
On a closing basis, the company’s scrip on the BSE closed 0.72 per cent lower at Rs 96.95 per share.
Currently, the company is the market leader in branded copier paper in India and amongst the top producers of coated paper and packaging boards in the country.