Low-priced Chinese supplies dip ITC-PSPD’s Q1 FY25 revenue by 6.8%. Green shoots of recovery in domestic demand are ahead of the festive season

Low-priced Chinese supplies dip ITC-PSPD’s Q1 FY25 revenue by 6.8%. Green shoots of recovery in domestic demand are ahead of the festive season

- Muted demand from the construction industry
- ITC-PSPD earned INR 261 Cr, declined by 44.7% 

The Pulp and Paper Times: 

ITC's Paperboards and Specialty Papers Division (ITC-PSPD) has disclosed its financial results for the first quarter of FY25, revealing a 6.8% year-on-year decline in revenue, totaling INR 1977 Crore. The company attributes this downturn to low-priced Chinese supplies in global markets including India, muted domestic demand, unprecedented increase in domestic wood costs.

In its submission to the Securities and Exchange Board of India (SEBI), the company highlighted the subdued global demand and a slowdown in domestic demand. Subdued realisations, surge in domestic wood prices and ocean freight continues to impact margins.

The report stated that structural advantages of the integrated business model, Industry 4.0 initiatives, strategic investments in High Pressure Recovery Boiler and proactive capacity augmentation in Value Added Paperboards aided in partly mitigating pressure on margins.

The submission informed that certain capacity augmentation/debottlenecking projects were successfully completed during the quarter; Segment performance includes the impact of such planned shutdown/stabilisation related costs pertaining to these initiatives.

Strong growth witnessed in speciality paper segment aided by recent capacity addition in Décor Paper, despite muted demand from the construction industry. Green shoots of recovery in domestic demand were visible ahead of the festive season; Value Added Paperboard (VAP) grades witnessed sequential improvement in net realisation rates.

The Packaging and Printing Business continues to focus on accelerating new business development in domestic and export markets offering innovative and customised solutions. The recent capacity addition at Nadiad, Gujarat, with state-of-the-art equipment, has further augmented the Business’ capabilities in Cartons packaging. During the quarter, Business launched Ecobyte, a quality sustainable packaging solution for eco-conscious households which offers germ-free and grease-resistant packaging.

ITC-PSPD  continued its sharp focus on portfolio augmentation, export customer/market development and structural cost management to mitigate near term challenges.
 

Web Title: Low-priced Chinese supplies dip ITC-PSPD’s Q1 FY25 revenue by 6.8%. Green shoots of recovery in domestic demand are ahead of the festive season