Mohit Paper Mills gives unexpected return and growth in sales and profits; decides to install Boiler and Evaporator to increase the capacity

Mohit Paper Mills gives unexpected return and growth in sales and profits; decides to install Boiler and Evaporator to increase the capacity  

- The Company has turnover (Net) of Rs. 22,216.5/- (In lakhs) as against previous figure of Rs. 14,079.85/- (In lakhs), the Company recorded increase in sale 57.79% (approx) in FY 22-23
- The management decided to install 150 TDS Boiler and Evaporator (“BE”) in the production line, the purpose to install this BE to increase the production with existing production capacity

The Pulp and Paper Times: 

Mohit Paper Mills Limited is engaged in manufacturing of various kinds of paper like Writing Printing Paper (colour and white), MG Poster paper, kraft paper and others various quality papers as required on customer demand. MPML is agro based Company using agro product for manufacturing the final product i.e. paper like Bagasse and other agriculture waste product which are abundantly available in the vicinity of the manufacturing unit.

the last previous financial year Mohit Paper has sustainable growth in term of sale as well as in term of profit, The total revenue was INR 222 coror (approx) which is compare to 140 crore rupees (approx) in last year, which is recorded growth 57 % (approx) where as growth in term of term of income MPML has recorded INR 4 crore (approx) profit as compare to INR 1.98 crore (approx) in earlier year, so that profit growth is 150% (approx), growth in the profit, with respect to the projection of 24 months.

MPML’s annual report stated that company is on expansion mode and setting up new recovery boiler in premises by installation of that recovery boiler production cost will be lower down simultaneously adding the additional stem. By making installing this boiler the profitability of the company will be increase by reduction of the cost. 

At present the production capacity of the Mohit Paper is 130 MT/per day and the Company always try to utilised it’s maximum production capacity. In the financial year 2022-2023 the management decided to install 150 TDS Boiler and Evaporator (“BE”) in the production line, the purpose to install this BE to increase the production with existing production capacity. The idea behind to install BE is that to increase the production of steam, power and caustic soda lye and result of this increment in steam, power and caustic soda, the production will be increased within the existing production capacity. After installing the BE, the Company can utilized its optimum or maximum production capacity. 

The management of the Mohit Paper always keeps keen eyes on every transitions of the Company. MPML is moving fast to maximization the wealth of shareholders and stakeholders. In paper industry MPML is regularly exploring and critically appraising its domestic market, the company saw downfall in respect of revenue and other aspect in the last year ( FY 21-22) 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

At present new machines come with various facilities helping to improve the efficiency and financial viability of mill. Your Company 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.

Segment or product wise Performance: 

During the year FY 22-23 Mohit Paper has achieved the 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 hardwork of labourers. This is a good example of proper utilization of the capacity with minimum resources. The company is engaged in single segment of production i.e. manufacturing of paper, more than 98% of the turnover are depend paper segment. In relation of financial performance of the segment are: The Company has turnover (Net) of Rs. 22,216.5/- (In lakhs) as against previous figure of Rs. 14,079.85/- (In lakhs), the Company recorded increase in sale 57.79% (approx).

During the financial year 2022-2023, the Company gives unexpected return and growth in sales and profits. The Company has recorded immense growth during the year under review. The Company has turnover (Net) of Rs. 22,216.5/- (In lakhs) as against previous figure of Rs. 14,079.85/- (In lakhs), the Company recorded increase in sale 57.79% (approx) further the Company recorded other Income in the respective year of Rs. 411.03/- (In lakhs) as against previous figure of Rs. 185.79/- (In lakhs), the Company recorded increase in other income 121.23% (approx). As total income of current year is Rs. 22,627.53/- (In lakhs) and previous year was of Rs. 14,265.64/- (In lakhs), the Company recorded increment of 58.61%.

Net profit and PAT (Profit after Tax) was Rs. Rs. 491.56/- (In lakhs) as compared to previous year figure of Rs. 196.14/- (In lakhs) reporting an increase of 150.62% (approx) in net profit as compared to previous year

Future of Paper Industry

In current days paper is best option and demand of paper increased day by day, the demand of paper due to many reasons, which are: 

Anti-Plastic thinking: There is either a reduction or elimination of the use of plastic in packaging. Antiplastic sentiment encourages biodegradable pulp and paper alternatives. This movement is being pushed forward by various government agencies as well as citizens who are concerned about their health. The problems caused by plastic present a wealth of opportunities for the paper and pulp manufacturing sector. 

The rise in online market: In global markets are seeing an increase in the sale of products online day by day. It is anticipated that this pattern will carry on furtherance of years. Because of the proliferation of online shopping, packaging has had to develop to make the most efficient use of shelf space. There has been an increase in the demand for raw materials and corrugated boxes. 

Food-packaging: The food packaging industry is undergoing change. Recently, there has been a rise in demand for packaging that is resistant to grease. This component can be found in a wide range of different packaged goods and restaurants and paper is used to packaging the food.
 

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