JK Paper, TNPL, and West Coast Paper’s Q3 FY25 revenue drops amid high wood costs and declining paper prices

JK Paper, TNPL, and West Coast Paper’s Q3 FY25 revenue drops amid high wood costs and declining paper prices

-JK Paper’s Q3 Turnover Rs.1732.97 Cr., Net Profit declines due to sharp rise in imports at low price.
-TNPL reported total revenue of Rs.1136.79 Crore for the quarter ended 31st December, 2024 as against Rs.1259.46 Crore in the corresponding quarter of the previous year
The Pulp and Paper Times

India’s paper industry faced a challenging quarter (Q3FY25) amid rising raw material costs, increased imports, and declining market prices. Leading players, including JK Paper Ltd., Tamil Nadu Newsprint and Papers Ltd. (TNPL), and West Coast Paper Mills Ltd., reported mixed financial performances, with profits under pressure due to higher wood costs and lower realizations. Despite these challenges, companies continue to focus on operational efficiencies, sustainability initiatives, and strategic growth measures to navigate the evolving market landscape.

JK Paper Ltd.:

JK Paper Ltd., (JKPL) one of India’s largest Paper & Packaging Solutions companies, recorded a turnover of Rs. 1,732.97 Cr, EBITDA of Rs.189.77 Cr and Profit after Tax (PAT) of Rs.65.39 Cr on Consolidated basis for the Quarter ended December’24. For the nine months period ended December’2024, the consolidated turnover was Rs.5,314.92 Cr, EBITDA Rs.794.65 Cr and PAT Rs.333.62 Cr.

JK Paper earned a profit after tax of Rs. 65.39 crore for the quarter ended December 2024, compared to Rs. 235.11 crore in the corresponding quarter of the previous year ended December 2023.
Commenting on the results, Mr. Harsh Pati Singhania, Chairman & Managing Director, said, “Sharp rise in imports at low price adversely affected sales volumes and realisation in Paper & Board. This coupled with continuing high wood costs has resulted in significant fall in profits”.

JK Paper continues it’s focus on social farm forestry initiatives around all plant locations to strengthen availability of adequate raw material besides improving green cover in the states of Odisha, Gujarat, Andhra Pradesh, Telangana, and Maharashtra. Total Saplings planted so far during the year is 11.28 Cr. covering 76,615 Acres.

Tamil Nadu Newsprint and Papers Ltd

TNPL reported total revenue of Rs.1136.79 Crore for the quarter ended 31st December, 2024 as against Rs.1259.46 Crore in the corresponding quarter of the previous year. The company incurred Loss before tax of Rs.64.64 Crore for the quarter ended 31st December, 2024 as against a profit of Rs.23.30 Crore in the corresponding quarter of previous year. Loss after tax is Rs.42.89 Crore as against a profit of Rs.16.20 Crore in the corresponding quarter of the previous year.

The increase in wood cost and steep drop in market prices of Paper & Paper Board has adversely impacted the turnover and profitability for the quarter ended 31st December, 2024.

Paper production for the quarter ended 31st December, 2024 is 99954 MT against 104065 MT in the corresponding quarter of the previous year. Packaging Board production is 47524 MT against 50444 MT in the corresponding quarter of the previous year.

Paper production for the nine months ended 31st December, 2024 is 315476 MT against 315179 MT in the corresponding quarter of the previous year. Packaging Board production is 137139 MT against 148304 MT in the corresponding quarter of the previous year.

The company reported total revenue of Rs. 3194.51 Crore for the nine months ended 31st December, 2024 as against Rs.3511.14 Crore in the corresponding period of the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs.365.04 Crore during the nine months ended 315' December, 2024 as against Rs. 657.28 Crore during the corresponding period of the previous year. After providing Rs.226.84 Crore towards depreciation & amortization and Rs.163.74 Crore for finance cost, the company incurred a Loss before tax of Rs.25.54 Crore as against a profit of Rs.271.36 Crore in the corresponding period of previous year. Loss after tax is Rs.18.40 Crore as against a profit of Rs.175.16 Crore in the corresponding period of the previous year.

West Coast Paper Mills Limited

West Coast Paper Mills Limited one of the oldest and the largest producers of paper for printing, writing and packaging in India. Established in 1955, the company enjoys a pedigree standing over the past 70 years as premium brand in paper industry, widely acknowledged in India and abroad. West Coast reported total revenue of Rs. 629.14 Crore (Standalone) for the quarter ended 31st December, 2024 as against Rs. 609.36 Crore in the Q2FY25. Profit after tax is Rs. 58.22 Crore (Standalone) as against a profit of Rs. 91.98 Crore in the Q2FY25. 

Commenting on the results Mr. S.K. Bangur, Chairman & Managing Director, West Coast Paper Mills Limited said: The performance of the company for the current quarter got impacted owing to steep rise in wood prices and decrease in realization due to sluggish market conditions and inflow of lower cost imports. However, the company persists in its efforts to enhance operational efficiencies.
 

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