Lockdown declines JK Paper’s net profit by 98 percent in Q1; Earned INR 2.66 Cr. for April-June quarter

Lockdown declines JK Paper’s net profit by 98 percent in Q1; Earned INR 2.66 Cr. for April-June quarter

New Delhi | 1st September 2020 | The Pulp and Paper Times:

The imposition of lockdown in India had impacted severely upon the profitability of the paper industry. The outbreak of COVID 19 has disrupted the first quarter results of paper mills. JK Paper reported a 97.84 percent decline in consolidated net profit to Rs 2.66 crore for the June quarter, impacted by COVID-19 related disruptions.

The company had posted a net profit of Rs 123.45 crore in the April-June period a year ago, JK Paper said in a regulatory filing.

Commenting on the results, Shri Harsh Pati Singhania, Vice Chairman & Managing Director, said “The outbreak of COVID-19 Pandemic (COVID) has caused worldwide economic disruption with a significant decline in economic activities in the country as well. The Company has evaluated and applied prudence in factoring its possible likely impact. Despite the adverse scenario, the Company was able to deliver steady performance based on good operating parameters in spite of a reduction in selling prices across major segments. Copier and Maplitho segments will show stronger performance once the education and service sector recommence normal operations. The Packaging Board segment has operated at higher capacity levels. The Company has been focusing on logistics costs which has enabled a steady reduction in many key input materials. The increased procurement of wood from areas closer to the Mills arising from the Company’s plantation activities has contributed to control of raw material cost.”

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‘Operations of the plants commenced during the 3rd week of April after nationwide shutdown due to Covid-19. However, frequent lockdowns in several parts of the Country have affected sales which have adversely impacted performance for the quarter. Management is closely monitoring the developments and possible effects on financial performance. All necessary precautions relating to hygiene, sanitization, social distancing, care and protection of the employees would continue to be followed’ a press realease said. 

Web Title: Lockdown declines JK Paper s net profit by 98 percent in Q1 Earned INR 2 66 Cr for April June quarter