Mohit Paper recorded 55 percent jump in Net Profit for FY 19-20, entered Poster Paper Manufacturing

Mohit Paper recorded 55 percent jump in Net Profit for FY 19-20, entered Poster Paper Manufacturing

Bijnor | 15 September 2020 | The Pulp and Paper Times:

The Paper industry's major challenge is to manufacture better quality of paper at competitive rates. Due to the zero rate import of paper the paper industry has been suffering. So the Government should make proper policies to curb down imports or to impose duty so that there is an equivalency between the price of Indian paper and imported paper.

"Financial year 2019-2020 is not so good for Indian industry especially paper companies based on agro raw materials. Mohit Paper has continuously adjusted its policies and strategies to handle with changing situations and paper industrial developments in domestic markets. We are striving to maintain our existence in Writing Printing Paper and Tissue paper," said Mr. Sandeep Jain, Managing Director cum Chairman, Mohit Paper Mills Limited in its Annual Report for FY 19-20

Despite, the inherent threats for the paper industry are scarcity of raw-material, high fuel prices, and new challenges thrown at us in the form of increased imports which will impose on us to look for avenues for greater efficiencies, Mohit Paper Mills has managed to report 55 percent jump in net profit, which is stood at INR 3.19 Crores for FY 19-20.

Mr. Jain further said in the report that Mohit Paper is always in search of such opportunities and is in the process of increasing its capacity and quality improvement. In the near future the Company is in the process of increasing its capacity. Your company had successfully entered into manufacturing of Poster Paper in the year. Mohit Paper is also in the process of Commissioning Chlorine- Di-Oxide Plant which will increase the realization of paper and is also good environmentally.

"During the Year Mohit Paper has shown improvements in its sales volume and profit. It is under process of installation of Cholrine Di Oxide Plant by which the quality of the paper is likely to be improved and will be able to fetch good market position with better prices,

"The company has achieved a good level of capacity utilization with respect to the manufacture of the paper and it was done due to the expertise of the Managing Director, the technical staff and the hard work of our labourers. This is a good example of proper utilization of the capacity with minimum resources," report stated. 

Corporate/Operational Review: 

Mohit Paper is achieving its objectives and goals. Our company wants to be more economical and bring efficiency in the operations and segment of the company. The company is moving fast to maximization the wealth of shareholders and stakeholders of Company. 

The company is regularly exploring and critically appraising its domestic market, the company saw downfall in respect of revenue and other aspects in the last year due to stiff competition in the market. The Company has maintained good standards in its products and always be trying to give sharpness to the Company's marketing strategies. 

The Company has recorded downfall during the year under review the Company has turnover (Net) of Rs. (In lakhs) 13,198.63/- as against previous figure of Rs. (In lakhs) 15599.42/- decrease in sale -15.39% (approx), 

Net profit and PAT (profit after tax and other comprehensive income) were Rs. (In lakhs) 319.82/- as compared to previous year figure of Rs. (In lakhs) 205.4/- reporting an increase of 55.71% (approx) in net profit as compared to previous year, The operating and fixed expenses are increased during the financial year resulting in lower net profits after tax and therefore, The Company's net profit could not post the corresponding increase.

The demand for paper is growing at an average rate of 8 percent per annum. Indian population is growing, has half of its people below 25 years of age and a large number of this young population would be studying in schools and higher educational institutions which inherently consume paper. At the same time state and central government is giving a lot of thrust on education along with releasing huge funds to achieve targets for educated and skilled youth. So this sector has a huge demand for paper which will increase on yearly basis.

"Mohit Paper Mills' policies are designed to provide a clear understanding of company's core values and the standards that govern our business. It also provides guidelines for navigating successfully through ethical challenges. In our competitive global environment, we sometimes encounter situations that test our judgment and integrity. When this happens, the policy and our ideals helps us respond in ways that are true way and comply with both the spirit and letter of the law. It lays the groundwork for how we treat our customers, investors, suppliers and other stakeholders,” Mr. Sandeep gave a message to Shareholders in the report. 

Web Title: Mohit Paper recorded 55 percent jump in Net Profit for FY 19 20 entered Poster Paper Manufacturing