Companies

JK Paper profits at Rs 25.11 cr; declares interim dividend

Our Bureau New Delhi | Updated on January 29, 2011 Published on January 29, 2011

Harsh Pati Singhania, Managing Director, JK Paper Limited. - Photo: Sushil Kumar Verma

JK Paper Ltd posted a 23.4 per cent rise in net profit for the Q3 ended December 31, 2010

JK Paper Ltd posted a 23.4 per cent rise in its net profit for the third quarter ended December 31, 2010, at Rs 25.11 crore, as against Rs 20.35 in the corresponding period a year ago.

The company, which posted gross sales of Rs 367.46 crore, up 18 per cent from the same period a year ago, said its Board has approved a rights issue for Rs 250 crore, besides an interim dividend of 22.5 per cent for 2010-11.

Mr Harsh Pati Singhania, Managing Director of JK Paper Ltd, said the growth in sales and operating profit during the preceding nine months and the outlook for the next 3 months have encouraged the directors to declare an interim dividend.

“The company has finalised the orders for most critical components on a fixed price basis. It is in an advance stage of negotiations with investors and lenders to achieve financial closure. Towards part funding the project the Board has announced a rights issue of upto Rs 250 cr. The draft letter of offer is being filed with SEBI,” he said.

He added that the increased sales and operating profit was possible due to better sales realisation and increased capacity utilisation across all product lines, despite increase in input prices.

Both production and sales volumes have maintained the growth trend in line with previous quarters of the current fiscal. Sales volume during the quarter was 75,194 MT, as against 67,523 MT in the corresponding quarter — an increase of 11.4 per cent.

On the outlook, Mr Singhania said demand looks good and the company is positive of registering another strong growth in this fiscal.

JK Paper scrip closed on the BSE at Rs 51 a share, down 3.13 per cent from the previous close.

Published on January 29, 2011
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