Star Paper Mills expects global factors will impinge on the paper industry’s performance. The company earned Rs. 41.14 crores PAT in FY 2024-25

Star Paper Mills expects global factors will impinge on the paper industry’s performance. The company earned Rs. 41.14 crores PAT in FY 2024-25

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 performance for the financial year 2024-25 despite facing various market challenges and constraints. The company clocked a turnover of Rs. 436.34 Crores for the year 2024-25 vis-a-vis Rs. 444.47 Crores for the preceding year. The Profit after tax (PAT) for the year stood at Rs. 41.14 Crores as against Rs. 64.00 Crores for FY 2023-24

There has been an upsurge in Imports at low prices from FTA areas which adversely impacted the domestic paper industry both in terms of domestic market share and product prices. At the same time, wood prices have been continuously increasing. These factors combined have led to lower margins.

Expectations for the year 2025-26:

While the factors outlined above continue to play out in the current financial year, additional uncertainty has been injected in the global trade system by recent tariff changes in two major economies. It is as yet unclear how long this will prevail, what will be the final outcome and its impact if any on Global paper trade and Indian Industry. We expect Domestic demand to grow in step with the Country’s economy but Global factors will impinge on Paper Industry’s performance.

The annual report of SPML for FY 24-25 stated that, looking ahead, India’s economic prospects for coming period are balanced. Headwinds to growth include elevated geopolitical and trade uncertainties and possible commodity price shocks. Domestically, the translation of order books of private capital goods sector into sustained investment pick-up, improvements in consumer confidence, and corporate wage pick-up will be key to promoting growth. Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth.

Under Social Farm Forestry programme, large scale plantations are undertaken on the farmers’ land. As in the past, momentum of Social Farm Forestry Program was maintained during the year 2024-25. SPML planted and distributed approximately 47.79 lacs seedlings during the year covering an area of 13,240 Hectares. The program helps in enhancing rural income and facilitate sustained availability of raw material to the Mill.

The report further stated that, on the contrary, Indian Paper Industry faced an oversupply issue, primarily caused by a significant rise in paper imports, particularly from China and ASEAN countries, which led to cut-throat market competition and reduced realisations. Furthermore, the cost of raw materials (domestic wood) surged to unprecedented levels as other wood-based industries heightened their demand, coinciding with a decreased wood supply due to plantation impacts from Covid. This combination of increased imports and soaring wood prices severely pressured margins of paper manufacturers in FY 2024-25.
 

Web Title: Star Paper Mills expects global factors will impinge on the paper industry’s performance. The company earned Rs. 41.14 crores PAT in FY 2024-25