JK Paper Ltd experienced a sharp decline in its stock price, dropping by 7% following the release of its Q1 results for the fiscal year 2024. The company reported a significant decrease in net profit, which fell by 54.8% to ₹139.7 crore for the quarter ending June 30, 2024, compared to ₹308.7 crore in the same period the previous year.
The drop in profit was primarily attributed to higher wood prices, which significantly impacted the company’s operating earnings. Despite the decline in profit, JK Paper’s revenue from operations saw an increase of 8.2%, rising to ₹1,713.7 crore from ₹1,584.4 crore the previous year.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) also fell, dropping by 41.3% to ₹280.4 crore. This decline led to a reduction in the EBITDA margin, which decreased to 16.4% from 30.1% a year earlier.
As of 9:40 AM, JK Paper’s shares were trading 6.96% lower at ₹524.95 on the NSE, as investors reacted to the disappointing financial performance and the challenges posed by rising raw material costs.
