JK Paper slides over 7% after Q1 net profit declines 55% YoY to ₹140.79 crore

JK Paper Limited shares dropped as much as 11.56% to an intraday low of ₹498.95 apiece on the NSE in morning trade reacting to the Q1 results. The company filed the earnings report for the first quarter of FY25 with the stock exchanges after market hours on July 24.

JK Paper Limited reported a 55% year-on-year decline in its consolidated profit after tax (PAT) at ₹140.79 crore in Q1FY25 compared to ₹312 crore in the corresponding period a year ago. However, the company's total income during the period under review stood at ₹1,742.65 crore, up 6.3% against ₹1,639.2 crore in the year-ago period.

JK Paper's EBITDA (earnings before interest, tax, depreciation and amortisation) slipped 36% YoY to ₹240.93 crore from ₹380.14 crore in the year-ago period due to a drop in market prices and a surge in input cost, the company informed the bourses.

JK Paper attributed the sharp decline in net profit to a decrease in market prices of products or services the company deals with.

The company also said that a rise in the cost of wood is adversely affecting its financial performance. These factors have particularly impacted the company's performance during the current quarter, leading to financial challenges.

On May 17, 2024, the company acquired the remaining 15% equity shares of its subsidiary companies, Horizon Packs Private Limited (HPPL) and Securipax Packaging Private Limited (SPPL), during this quarter. With the acquisition of the remaining 15% equity shares, HPPL and SPPL are now fully owned and controlled by the company.

JK Paper Ltd shares closed 7.83% lower at ₹520 apiece on the NSE.