The Hindu Business Line : West Coast Paper posts Rs 43 cr net

West Coast Paper Mills Ltd (WCPML) has retained the benefit of reduction in excise duty on paper and paper products from 16 per cent to 12 per cent ad valorem to compensate a portion of the cost escalation in raw material and fuel. The company said this while announcing its unaudited financial results for the year ended March 2006.

During the fiscal under review, the company earned a net profit of Rs 42.73 crore on a sales turnover of about Rs 525 crore, when its total production touched around 1,76,000 tonnes of writing and printing paper, and duplex board. Of the total production, duplex board would be about 67,000 tonnes. Last year, it produced about 1,73,000 tonnes, including duplex board of the same quantity.

Although the net profit was 39 per cent higher than last year's net of Rs 30.66 crore, the net profit would have been far better but for higher cost of raw material and fuel and the shutdown of its turbine-II in April and May 2005, according to the company. It is indicated that the company is actively considering revision of prices effective from June to neutralise the remaining portion of production cost hikes.

A company press note said that WCPML does not foresee any impact on its cost of production due to the current increase in furnace oil rate. On the contrary, it expects that the impact will be lower now owing to the restricted load on multi-fuel based power plants after the commissioning of the new turbine generating set.

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