The Hindu Business Line : Seshasayee Paper net falls 64% on raw material, fuel costs

Chennai, Oct. 18 Raw material and fuel costs have contributed to Seshasayee Paper and Boards Ltd reporting a 64 per cent drop in net profits for the second-quarter ended September 30, 2008.

According to a press release from Seshasayee Paper, the provision of Rs 8.40 crore during the quarter for exchange difference following the weakening of the rupee against the dollar for the import bills for coal, wood pulp and foreign currency loan has also contributed to the drop in net profit.

The company has completed its Rs 350 crore mill development plan, which is to take its in-house pulp capacity to about 440 tonnes a day against 240 tonnes earlier. This will protect the company against the fluctuations in the international pulp prices.

The company has said that the erection and commissioning of the equipment have been completed during the quarter and they are in continuous operation. It has a paper production capacity of over 1.15 lakh tonnes a year.

Related Stories:
Seshasayee Paper mulls expanding capacity
Seshasayee Paper to commission expanded pulp mill by month-end

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