The Hindu Business Line : Seshasayee Paper net zooms; to pay 35%

Chennai June 11 A steady market that supported price revisions and in-house measures to cut costs have contributed to Seshasayee Paper and Boards Ltd more than doubling its net profit during 2006-07 (see table).

The company has announced a dividend of Rs 3.50 (35 per cent) a share of Rs 10 for the year. The company has attributed the performance to increased production, net sales realisation, increased usage of in-house pulp instead of costlier imported pulp, reduction in energy costs - the company meets 85 per cent of its power requirement from a captive 20 MW plant - to the higher profit after tax, according to a press release.

The mill development plan, which it announced last year, is on track. The Rs 350-crore project involves expanding its pulp mill to about 350 tonnes a day from the present 230 tonnes. The components are in place and the project will be on stream by December.

The company is in the process of increasing the area under contract tree farming to improve the raw material availability. It has over 9,000 acres under contract and plans to increase the area every year.

On the stock exchange today, the company's shares opened at Rs 145.20 and hit a high of Rs 171.80 before closing at Rs 168.50.

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Seshasayee Paper net zooms; to pay 35%