A steep drop in market prices of paper impacted the profit of TNPL for Q2Y24-25; revamping of the existing steam and power system in Unit-I

A steep drop in market prices of paper impacted the profit of TNPL for Q2Y24-25; revamping of the existing steam and power system in Unit-I

-Profit after tax is Rs.2.59 Crore as against a profit of Rs. 30.30 Crore in the corresponding quarter of the previous year.
-Paper production for the quarter ended 30th September 2024 is 106143 MT against 105614 MT in the corresponding quarter of the previous year.
-procurement of one High Pressure Boiler is under progress and is likely to be completed by end of March, 2026.
The Pulp and Paper Times

In the fiscal year 2023-24, India witnessed a significant increase in imports of Printing and Writing papers. This rise, in imported paper is attributed to very competitive pricing from overseas suppliers. These imports have intensified competition in the Indian market, putting pressure on domestic manufacturers, including TNPL, to maintain market share and price competitiveness.

TNPL reported total revenue of Rs. 927.87 Crore for the quarter ended 30 September, 2024 as against Rs. 978.09 Crore in the corresponding quarter of the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs. 138.18 Crore for the quarter ended 30 September, 2024. After providing Rs. 75.89 Crore towards depreciation & amortization and Rs. 57.24 Crore for finance cost, the company earned Profit before tax of Rs. 5.05 Crore for the quarter ended 30 September, 2024 as against a profit of Rs.47.82 Crore in the corresponding quarter of previous year. Profit after tax is Rs.2.59 Crore as against a profit of Rs. 30.30 Crore in the corresponding quarter of the previous year.

Despite reduction in cost of key input materials, the steep drop in market prices of Paper & Paper Board has adversely impacted the turnover and profit for the quarter ended 30th September, 2024.

Paper production for the quarter ended 30th September 2024 is 106143 MT against 105614 MT in the corresponding quarter of the previous year. Packaging Board production is 44884 MT against 50156 MT in the corresponding quarter of the previous year.

The company reported total revenue of Rs. 2057.71 Crore for the half year ended 30" September, 2024 as against Rs. 2251.68 Crore in the corresponding period of the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs. 299.28 Crore during the half-year ended 30" September, 2024 as against Rs. 501.51 Crore during the corresponding period of the previous year. After providing Rs. 150.39 Crore towards depreciation & amortization and Rs.109.79 Crore for finance cost, the company earned a Profit before tax of Rs. 39.10 Crore as against a profit of Rs, 248.06 Crore in the corresponding period of previous year. Profit after tax is Rs. 24.49 Crore as against a profit of Rs.158.96 Crore in the corresponding period of the previous year.

However the ongoing Red Sea crisis is impacting global shipping routes, potentially increasing transportation costs and causing delays in import of raw materials. This could be a saving grace to the Indian paper manufacturers. Without imports coming into the country, domestic manufacturers could potentially shore up prices at least to cover up the escalating costs, to some extent.

Revamp of Steam and Power System In Unit-1:

The installation of two high pressure boilers of 125 tph each along with a 42 MW Turbo Generators under Revamping of the existing Steam and Power System (RSPS 2) at Unit -1 is being taken up in phases to retire and replace the old low-pressure boilers installed in 1985. As part of Phase # 1, procurement of one High Pressure Boiler is under progress and is likely to be completed by end of March, 2026.

TNPL commenced paper production in the year 1984 with a capacity of 90,000 Metric Tonnes per annum. Over the years, the capacity stands expanded to 4.0 lakh Metric Tonnes per annum of Printing and Writing Paper. In 2016, the company had set up a state-of-the-art Packaging Board Plant with an annual capacity of 2,00,000 Metric Tonnes per annum in Mondipatti village, Manaparai taluk, Trichy District.
 

Web Title: A steep drop in market prices of paper impacted the profit of TNPL for Q2Y24-25; revamping of the existing steam and power system in Unit-I