Century Pulp & Paper: SUP ban will give momentum to WPP demand, subdued forecast for board segment

Century Pulp & Paper: SUP ban will give momentum to WPP demand, subdued forecast for board segment

-Sales have increased by 37% to Rs. 942 Cr. in Q2 FY23 as compared to Rs. 686 Cr. in Q2 FY22.  
-Sales realization has increased by 45% in Q2 FY23 as compared to the same quarter of FY22.
-The board segment market is expected to be subdued due to lower demand

Lalkuan | 10th November 2022 | The Pulp and Paper Times: 

The largest manufacturer of Paper, Board, Tissue and Pulp, Century Pulp and Paper has registered a 37 percent growth in its sales revenue inQ2 of FY23. Situated at the foothills of Himalayas in Lalkuan, Uttarkhand, Century Pulp and Paper is a producer of excellent quality writing and printing paper, and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp products.

Commenting on the Q2 FY23 results, R K Dalmia, Managing Director, Century Textiles and Industries Limited (CTIL) said, "Building upon the momentum initiated in the previous quarter, the company performed even better in this quarter, especially due to increased market demand during the festive season, favourable impact of the single-use plastic ban as well as several cost-reduction initiatives implemented across our production facilities.

The Pulp and Paper business delivered stellar performance backed by increased demand across all segments with timely price corrections and cost reductions.

Sales have increased by 37% to Rs. 942 Cr. in Q2 FY23 as compared to Rs. 686 Cr. in Q2 FY22.  Sales realization has increased by 45% in Q2 FY23 as compared to the same quarter of FY22. The plant achieved overall capacity utilization of 96%.

Writing & Printing paper (WPP) demand is expected to increase on account of the single-use plastic ban despite heavy cost pressure in the domestic market due to imports and price corrections by lower-grade mills. The tissue segment is expected to perform better in Q3, with major tissue consumption centres being fully operational. The board segment market is expected to be subdued due to lower demand and competitive low-priced imports. With the reopening of most paper consumption centres and subsiding high input prices, the short to medium-term outlook for the Indian paper industry appears to be positive.
 

Web Title: Century Pulp and Paper quarterly results