JK Paper’s shares declined 7% on Thursday following disappointing Q3 FY25 results, with the company reporting a 40% drop in EBITDA and a contraction in margins to 15.5% from 25.1% YoY. The paper manufacturer continues to face pressure from elevated raw material costs and subdued demand.
For the quarter ended December 31, 2024, JK Paper’s consolidated net profit plummeted 73% YoY to Rs 65.39 crore, reflecting its sixth consecutive quarter of profit decline. The company’s net revenue from operations fell 4.4% to Rs 1,632 crore, driven by lower product pricing amid subdued market demand. Meanwhile, total expenses increased by 5%, fueled by an 18% surge in raw material costs, particularly wood.
Indian paper companies, including peers like West Coast Paper Mills, have been hit by cheaper imports and elevated input costs in recent quarters. JK Paper has also faced pricing challenges following a post-pandemic demand correction, forcing the company to reduce selling prices.
In Q3 FY25, the company reported total sales of Rs 1,632 crore compared to Rs 1,706 crore a year ago. Net income plunged to Rs 65.39 crore from Rs 235.1 crore in the corresponding period last year. Basic and diluted earnings per share from continuing operations fell sharply to Rs 3.86 from Rs 13.88 YoY.
For the nine-month period ending December 31, 2024, JK Paper’s total sales stood at Rs 5,028 crore compared to Rs 4,941 crore last year. However, net income dropped to Rs 333.6 crore from Rs 846.1 crore YoY, indicating ongoing challenges for the company.
As of 9:15 am the shares were trading 7% lower at ₹355.45 on NSE.
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