The Hindu Business Line : Seshasayee Paper profits rise marginally

CHENNAI: Seshasayee Paper and Boards Ltd has reported a net profit of Rs 99 lakh on income from operations of Rs 102.93 crore for the quarter ended December 2004.

During the corresponding period in the previous year, the company reported a net profit of Rs 4.44 crore on an income of Rs 97.53 crore.

The company has attributed a host of reasons for the drop in profits. They are: the steep increase in raw material prices including forest raw material and bagasse from sugar mills; increase in the cost of imported pulp, coal and lignite; and loss of production of 1,700 tonne during October-December 2004, due to heavy rains, reduction in value of DEPB licenses from 8 per cent of the f.o.b. value to 4 per cent of f.o.b. value and increased employee cost on account of long-term wage settlement, which covers a five-year period from April 1, 2004.

During the quarter, the company exported 4,857 tonnes (5,166 tonnes) of paper and paperboards. It hopes to complete a 20-MW captive power project by February.

For the nine-month ended December 2004, it reported a net profit of Rs 2.91 crore (Rs 13.94 crore) on an income from operations of Rs 310.54 crore (Rs 303.65 crore).

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