The Paper Products Limited Q1 Net Sales up by 12.2%, Board recommends subdivision of shares

Mumbai, April 27, 2007: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the quarter ended March 31, 2007. The company achieved Net Sales of Rs. 130.25 crores during the quarter, representing a growth of 12.2%, over Net Sales of Rs.116.07 crores in the Q1-2006. The profit before tax (PBT) is Rs.9.35 crores as compared to Rs.11.05 crores in the Q1 2006. The basic and diluted earnings per share (EPS) for the quarter is Rs. 6.17 as compared to Rs.6.26 in the Q1-2006.

As informed earlier the company has been setting up a production facility in North India in the State of Uttarakhand at a cost of Rs. 65 crores. The first phase of the project was commissioned & commerical production commenced in January 2007. The remaining facilities are being commissioned in a phased manner & the project is expected to be completed by end Q2-2007.

The pressure on margins due to high raw material prices & customer resistance to commensurate revision in selling prices has been countered by the company's innovation programme NASP "New Applications, Structures, Products and Processes" which has also driven the sales growth during the quarter. In view of the opportunities present in the economy & the strategic initiatives being implemented by the company the medium to long term outlook is positive.

In the previous quarter the Board of Directors had recommended dividing of one equity share of face value of Rs. 10 each fully paid-up into five equity shares of face value of Rs. 2 each fully paid-up.

Source : Equity Bulls

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