JK Paper surges 10% on robust Q1; West Coast, Andhra Paper rally up to 16%
Shares of JK Paper surged around 10 per cent to the day’s high on Monday as investors thronged the counter after the company reported robust results for the April-June quarter (Q1FY23) post-market hours Friday.
The stock touched an intra-day high of Rs 380.55 as it inched closer to its 52-week high level of Rs 387.40. Shares of the paper company have gained 14 per cent in the last ten sessions (excluding today’s move).
The company posted an over two-fold rise in its consolidated net profits for the June quarter to Rs 261.98 crore (up 152 per cent) from a year ago. Its net revenue came in at Rs 1,430 crore, growing 116.5 per cent over the previous year.
JK Paper’s consolidated gross revenue of Rs 1,508.50 crore for the quarter were the highest ever in a quarter, it said.
Earnings before interest, tax, dividend and amotisation (EBITDA) stood at Rs. 458.09 crore, a growth of 104 per cent from Rs 224.51 crore in June 2021. The company said the robust performance came on the back of higher production, sales volume and enhanced sales realisation, aided by a good product mix.
“This is inspite of adverse impact of substantial increase in major input costs in the recent period. Demand for paper and board remains strong. The new packaging board line has stabilised well and achieved high capacity utilisation,” said the company’s managing director, and vice-president Harsh Pati Singhania.
The sharp gains in the company’s scrip also spilled over to other industry stocks. Shares of Orient Paper, West Coast Paper, Ruchira Paper, Pudumjee Paper, Nath Industries, Star Paper Mills, TN Newsprint, Andhra Paper, and SI Paper Mills spurted 4-16 per cent.
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