Star Paper Mill expects pressure on margins due to intense competition on the demand side and earned a PAT of Rs. 64.00 crores in FY 23-24

Star Paper Mill expects pressure on margins due to intense competition on the demand side and earned a PAT of Rs. 64.00 crores in FY 23-24

The Pulp and Paper Times

Star Paper Mills Limited (SPML) established in 1938, is an integrated Pulp and Paper Mill. Starting with 6000 MT/annum, it has come a long way and produced of 72000 MT in 2008-09. It produces a wide range of Industrial, Packaging and Cultural Papers catering to almost all segments of the Consumers. Star has a distribution network throughout the Country. 

SPML reported satisfactory financial and operational results for the financial year 2023-24 amid various challenges and constraints. The company achieved a turnover of Rs. 444.47 Crores for the year 2023-24 vis-avis Rs. 492.69 Crores for the preceding year. The Profit after tax (PAT) for the year stood at Rs. 64.00 Crores as against Rs. 65.67 Crores for FY 2022-23.

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The annual report of SPML for FY 23-24 said that Indian Paper Industry is expected to grow in line with rest of the Economy. Paper products are used in education, healthcare, food & drink, trade, communication, E-commerce, packaging etc. Reduction in use of non -recyclable materials would open up further opportunities for Paper Industry. However we need to guard against indiscriminate Imports under FTAs.

Review of performance for the year 2023-24: 

The year 2023-24 witnessed sluggish product demand and intense market competition especially from imports. Global Pulp and Paper prices ruled lower than previous year leading to decline in domestic realisations too. At the same time Wood prices surged due to demand from construction and other sectors leading to higher Input costs.

However, reduction in coal prices provided some respite.

There was an incidence of fire in one of the Wood Yards (outside Mills compound) in Dec., 2023 The loss of wood due to fire is covered under Insurance and claim has been lodged. There was no human casualty due to above accident.

Amid various challenges and fierce competition, SPML reported a Profit after tax (PAT) of Rs. 64.00 Crores for the year 2023-24 as against Rs. 65.67 Crores for FY 2022-23.

Pressure on margins due to intense competition on demand side and rising wood prices is expected to persist for some time. However, going forward volume growth is expected in line with a buoyant Economy.

SOCIAL FARM FORESTRY

SPML has been promoting and encouraging tree plantation program under social farm forestry for many years now. This not only facilitates sustained availability of Wood but also enhances rural Incomes. The program involves supply of high quality clones/seedlings apart from providing technical assistance to the farmers in the catchment areas.

The program maintained its momentum during the year too and your company further stepped-up propagation and distribution of clonal plants and the area coverage. Your company enabled plantations of approx 43.86 lacs seedlings during the year.

Future Plan of Action
a)Development of new grades/varieties of paper. b) Optimization of water, fiber losses and energy consumption. c) Optimization of paper making chemicals. d) Development of new vendors for cost reduction.
 

Web Title: Star Paper Mill expects pressure on margins due to intense competition on the demand side and earned a PAT of Rs. 64.00 crores in FY 23-24