JK Paper shares rally 9% even as Q4 profit dips on higher raw material costs

The company said higher raw material cost and lower sales realisation adversely impacted performance during the current quarter.

The JK Paper stock rose as much as 8.9% to hit an intraday high of ₹381.05 apiece on the National Stock Exchange of India (NSE). The stock has underperformed in the past few months, falling over 7% year-to-date in 2024. In the past year, JK Paper’s share price has inched up just 4% compared with a 23.5% increase in the benchmark Nifty 50 index during the same period.

JK Paper, on Thursday, said that the company’s consolidated profit after tax (PAT) stood at ₹275.64 crore for Q4FY24 compared with ₹280 crore in the year-ago quarter.

The company recorded a flat total income of ₹1,776.10 crore in the March 2024 quarter compared with ₹1,762.32 crore a year ago.

Operating income, or earnings before interest, tax, depreciation and amortisation (Ebitda), fell to ₹416.44 crore in Q4FY24 compared with ₹428.3 crore in Q4FY23.

JK Paper’s board of directors also recommended a final dividend of ₹5 per share (50%) on the equity share capital for the financial year ending March 2024. This is in addition to an interim dividend of ₹3.5 (35%) per share declared and paid during the year.

Commenting on the earnings, JK Paper’s chairman and managing Director Harsh Pati Singhania said, “Significant increase in raw material cost and lower realisation across all categories have impacted performance during the quarter. The selling prices continued to remain under pressure due to an increase in imports. However, sales volumes grew 2.3% in Paper and Boards during the year and the company continues to focus on operational efficiencies.”