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With improved price realisation and product mix, Rainbow Papers Ltd, waste paper recycling major, recorded an increase of 92 per cent in profit after tax (PAT) and a growth of 57 per cent in sales in the third quarter of 2010-11, ended December 31, 2010, compared with the corresponding period in the previous fiscal.
On Friday, the Ahmedabad-based company's share price on the BSE closed 0.68 per cent down at Rs 58.05.
During the third quarter, Rainbow Papers' sales were Rs 106.48 crore (Rs 67.99 crore) while PAT was Rs 10.43 crore (Rs 5.42 crore), according to a company release here today.
Mr Ajay Goenka, Chairman and Managing Director, said Rainbow Papers' first phase expansion of 80,000 mtpa was yielding good results, which was reflected in quarter-on-quarter performance.
The sales in this quarter were at 36,338 mt (27,716 mt), an increase of 31 per cent in volume, while average realisations increased by 19 per cent to Rs 29.18 per kg (Rs. 24.50 per kg).
With the completion of expansion of 1.22 lakh mtpa capacity, Rainbow Papers will be the sixth largest paper producer in India with a total capacity of 3.05 lakh mtpa, he added.
The Indian Paper Manufacturers Association is expecting demand for paper to grow by 57 per cent to 14 mt by 2015.
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