Indian Paper Mills’ Register Profit in First Quarter of FY 2016- 17

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FY 2016-17: Indian Paper Mills are on profit path, read the report.

Indian Paper Mills’ Register Profit in First Quarter of FY 2016- 17 

New Delhi: The demand in paper consumption and upward trend in literacy rate, boosting profitability in paper mills’ balance sheet. According to an Industry Expert Indian paper mills have reported a sharp increase in their profitability in the April-June 2016 quarter, indicating a turnaround in their fortunes after three years of low margins. Most of the things are being converted in packaging creating demand to suck more production. The net profit of Tamil Nadu Newsprint jumped 33 per cent to Rs 69.51 crore for the June’16 quarter, that of JKPaper shot up 79 per cent to Rs 26.66 crore. The June quarter net profit of Seshasayee Paper and InternationalPaper surged 347 per cent and 91.53 per cent to Rs 24.12 crore and Rs 15.38 crore, respectively. As per a Market Study that paper mills’ operating margins showed a declining trend with increase in raw materials, power and fuel cost largely during FY13. Also, with capacity expansion during FY09 and FY11, players could not increase the prices and faced import threat. Owing to this, the operating margins declined to 11% between FY12 and FY14, which started gradually arresting in F15. 

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