JK Paper Ltd Faces Profit Slump Amid High Costs and Competition
JK Paper Ltd reported a significant profit drop of 39.32% in Q1 of 2025 due to low sales realization and soaring wood pulp costs. The company faced competition from cheap imports, but managed to sequentially improve profits. JK Paper plans to acquire a majority stake in Borkar Packaging Pvt Ltd.
- Country:
- India
On Monday, JK Paper Ltd disclosed a steep 39.32% plunge in its consolidated net profit to Rs 85.43 crore for the first quarter ending June 2025. The decline was attributed to low sales realization and increased wood pulp expenses, signaling significant financial pressures on the paper manufacturer.
In a year-over-year comparison, JK Paper had earned a net profit of Rs 140.79 crore in the same quarter of 2024. Despite revenues slipping by 2.3% to Rs 1,674.16 crore, compared to Rs 1,713.65 crore the previous fiscal year, the company managed to boost profits sequentially.
Amid tackling competitive headwinds from cheaper imports and high domestic wood prices, JK Paper's board approved the acquisition of a 72% stake in Borkar Packaging Pvt Ltd. JK Paper shares dipped 5.27% to Rs 354 on the BSE, reflecting investor reactions.
(With inputs from agencies.)
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