Companies

TNPL reports three-fold rise in Q1 profits

Our Bureau Chennai | Updated on August 14, 2019 Published on August 14, 2019

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Tamil Nadu Newsprint Ltd (TNPL) reported a three-fold increase in net profit to ₹77 crore for the first quarter ended June 30, 2019, as against ₹25 crore during the corresponding quarter of previous financial year. Revenue was up three per cent to ₹961 crore (₹935 crore).

The first quarter performance was the highest ever, due to increase in sales and better realisation on sale of paper, the company said.

The company achieved the highest paper production of 1,09,216 tonnes (1,02,525 tonnes ) and pulp production of 91,553 tonnes (86,848 tonnes). Spurred by domestic demand, sale of printing and writing paper soared to 1,02,671 tonnes (98,185 tonnes).

Cement production at TNPL’s lime sludge and fly ash management system also witnessed the highest production at 78,463 tonnes for the quarter since inception as against 53,289 tonnes during the corresponding previous quarter. Cement sale was 76,439 tonnes (54,140 tonnes).

With marginal increase in selling price and reduction in cost of inputs, this unit too turned profitable during the quarter, said the company press release.

TNPL has embarked on backward integration of the ‘board plant’ and is on track in establishing the 1,40,000 tonne pulp mill under Mill Expansion Plan – Phase I. The project after commissioning will transform into an integrated board plant that will provide the impetus to ensure sustained profitability in board manufacturing, the release said.

On the Bombay Stock Exchange, the company stock price closed at ₹166.65, up by ₹7.65.

Published on August 14, 2019
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