Shares of JK Paper Ltd dropped by over 4% on Monday following the announcement of its Q2 FY25 results, which revealed a significant decline in profitability. The company reported a 57.84% year-on-year (YoY) drop in consolidated net profit to ₹128.85 crore for the quarter ending September 30, 2024, impacted by increased expenses.
Key Financial Highlights for Q2 FY25:
- Net Profit: Declined by 57.84% YoY to ₹128.85 crore, compared to ₹305.68 crore in the same quarter of the previous year.
- Total Income: Slight increase, standing at ₹1,714.88 crore, up from ₹1,708.81 crore YoY.
- Total Expenses: Rose to ₹1,569.63 crore, up from ₹1,368.23 crore, exerting pressure on profitability.
- EBITDA: Declined by 35.3%, with EBITDA margin down to 15.7% from 24.7% YoY, highlighting increased cost challenges impacting operational efficiency.
Stock Performance:
As of 9:49 am, JK Paper shares were trading at ₹438.05 on the NSE, reflecting a 4.08% decrease following the earnings report, as investors reacted to the drop in profitability and narrowing margins.
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