Seshasayee Paper and Boards (SPB) Ltd’s record profit momentum continued in the December 2022 quarter as the company’s net profit crossed ₹100 crore for the second quarter in a row.

For the quarter ended December 31, 2022, the company’s net profit zoomed to ₹109 crore when compared with ₹6 crore in the year-ago quarter. Higher production and sales on the back of robust pent-up demand and improved net sales realisations, both from domestic and export markets, have aided the company’s strong performance.

Revenue up

The company’s revenue from operations climbed 66 per cent to ₹556 crore in Q3 of this fiscal when compared with ₹334 crore in the year-ago quarter. Profit before exceptional items and tax stood at ₹146 crore as against ₹8 crore.

For the nine months ended, the company’s net profit rose to ₹271 crore when compared with ₹50 crore in the year-ago period. Revenue was higher at ₹1,509 crore as against ₹884 crore.

The company has been able to produce more to meet the demand due to the completion of its ₹288 crore Mill Development Plan-Ill (MDP-III) at Erode. Work for the MDP-III project, which will increase the capacity to 1,65,000 tonnes a year from 1,32,000 tonnes a year, was started in July 2019 but was delayed due to the Covid lockdown.

Seshasayee Paper had spent ₹220 crore as on March 31, 2022, for the MDP-III and has planned to spend the balance of ₹68 crore in 12-15 months.

Paper consumption in India is expected to grow at 6-7 per cent annually and will reach 30 million tonnes by FY 2026-27, largely driven by an emphasis on education and literacy coupled with growth in organised retail trade, according to Indian Paper Manufacturers Association.

The Board has approved the reappointment of N Gopalaratnam as Whole Time Director of the company, designated as Chairman for three years – from April 1, 2023.

It also approved the reappointment of KS Kasi Viswanathan as Managing Director of the company for three years from April 1, 2023. The company’s stock closed 1.03 per cent lower at ₹268.35 per share on NSE on Saturday.