JK Paper Ltd Reports 55% Dip in Q1 Net Profit Despite Revenue Growth

JK Paper Ltd reported a 55% decrease in consolidated net profit to Rs 140.79 crore for the June 2024 quarter, mainly due to a drop in market prices and a rise in wood costs. Revenue from operations during this period was Rs 1,804.47 crore. The company continues to invest in social farm forestry initiatives to offset future raw material costs.

JK Paper Ltd on Wednesday reported a 55 percent decline in consolidated net profit to Rs 140.79 crore for the June 2024 quarter, primarily due to a fall in market prices and rising wood costs.

In the corresponding period of the previous fiscal, the company's consolidated net profit was Rs 312.56 crore, according to regulatory filings by JK Paper.

The company's consolidated revenue from operations for the quarter stood at Rs 1,804.47 crore, compared to Rs 1,663.97 crore a year ago.

Total expenses during the quarter increased to Rs 1,549.21 crore, up from Rs 1,238.34 crore in the same period last year.

Chairman & Managing Director Harsh Pati Singhania stated that the results were adversely impacted by a significant drop in market prices and a surge in wood cost, compared to the corresponding quarter.

Despite these challenges, the company increased sales volume driven by higher utilisation in its packaging board business.

In a strategic move to mitigate long-term raw material cost increases, JK Paper is further advancing its social farm forestry initiatives.

(With inputs from agencies.)