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City based kraft paper major Sree Sakthi Paper Mills Limited has registered a quantum jump in profit in the fourth quarter of fiscal 2011.
Whereas the company’s gross sales grew 31 per cent, from Rs 40.76 crore in Q4- FY10 to Rs 53.56 cr in Q4-FY11, its bottom line vaulted 56 per cent from Rs 1.28 crore to Rs 1.99 crore, a release said here.
The leap in profit was largely attributed to the company’s modernisation which resulted in higher realisation.
For the full year, the company registered 31 per cent growth in gross sales, from Rs 145.86 crore to Rs 190.82 crore, and 51 per cent rise in net profit, from Rs 4.64 crore to Rs 7.01 crore.
The company produced 77315 tonnes of paper in FY—11, an increase of 7.5 per cent, as compared to 71926 tonnes in the previous year.
Enthused by the impressive performance, the board has recommended a higher dividend of 21 per cent (including interim dividend of 8 per cent) as against last year’s 18 per cent.
The modernisation drive by the company in installing dryers and machine modification has helped the company improve the operating profits.
About the ongoing modernisation, equipments at Krima Disperser Unit were expected to be installed by September 2011. Work was also in progress at 22 TPH Boiler and 2 MW Back Pressure Turbine which is slated to be operational by October 2011, the release said.
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