New Delhi, January 29, 2025 – JK Paper Limited (NSE: JKPAPER) has reported a net profit of ₹137.57 crore in Q3 FY25, amidst rising import pressures and higher raw material costs. The company also announced its acquisition of a 65% stake in Quadragen VetHealth Private Limited, marking its entry into the animal nutrition sector.
Key Financial Highlights (Q3 FY25 vs Q3 FY24)
- Total Revenue: ₹1,607.3 crore, up from ₹1,389.7 crore (+15.7%)
- Profit After Tax (PAT): ₹137.57 crore, up from ₹118.72 crore (+15.9%)
- EBITDA: ₹185.7 crore, up from ₹160.7 crore (+15.6%)
- Total Expenses: ₹1,425.3 crore, up from ₹1,238.1 crore (+15.1%)
- Earnings Per Share (EPS): ₹3.61, down from ₹7.14 (-49.4%)
Nine-Month Performance (9M FY25 vs 9M FY24)
- Total Revenue: ₹4,309.5 crore, up from ₹3,844.6 crore (+12.1%)
- Net Profit: ₹327.69 crore, up from ₹289.45 crore (+13.2%)
- Total Comprehensive Income: ₹342.27 crore, up from ₹325.67 crore (+5.1%)
Operational & Business Developments
- Impact of Rising Imports: Increased low-cost imports and high wood prices negatively impacted sales volumes and profit margins.
- Acquisition of Quadragen VetHealth Private Limited (QVPL):
- Acquiring 65% stake upfront for ₹769.23 per equity share.
- Remaining 35% stake to be acquired over the next four years, subject to performance-based adjustments.
- QVPL reported a turnover of ₹151.96 crore in FY24, reflecting strong market presence in the animal nutrition sector.
- Composite Scheme of Arrangement:
- The company has proposed a merger with its subsidiaries, including JKPL Utility Packaging Solutions, Securipax Packaging, and Horizon Packs, pending regulatory approvals.
Management Commentary & Strategic Outlook
Managing Director Harsh Pati Singhania stated, “Despite macroeconomic challenges, JK Paper continues to expand its market presence. The acquisition of Quadragen VetHealth aligns with our strategy to diversify into high-growth sectors while strengthening our core operations.”Future Growth Strategies
- Diversification: Expansion beyond paper and packaging into animal nutrition.
- Cost Efficiency Measures: Optimization of procurement and supply chain operations to counter rising input costs.
- Sustainable Growth: Investment in renewable energy and sustainable packaging solutions.