J K Paper Ltd announces full year results

J K Paper Ltd has announced that the Company has completed its Financial year ended June 30, 2006 with record sales.

Sales volumes for FY 2005-06, are well over the previous best in all the paper and board segments in which the Company operates. Sales of paper and pulp were about 197,000 tonnes for the year ended June 2006.

Commenting on the Company´s performance, Mr Harsh Pati Singhania, Managing Director of the Company said that "the year saw robust domestic demand for the Company´s products and higher realizations, resulting in an increase in domestic Sales by about 23% over the previous fiscal". "JK Copier" its flagship and the best known brand in the Indian paper industry has grown approximately 17% year on year in the local market. The share of value added products, which includes branded copier papers and coated papers, has jumped to more than 60% in volume terms from only about 33%, 4 years ago.

The Company´s Coated paper, which was launched in July 2005 under the brand name "JK Cote", has gained excellent acceptance in the market taking a firm foothold with a 17% share, in a market which is growing at 12-15% p.a. With the international prices of coated papers firming up by 8% in dollar terms and 13% in rupee terms, the domestic prices and profitability are likely to see an upward shift, which will be further augmented by the cost optimization initiatives and production stabilization. The Company had announced a price increase in its coated varieties of Rs 1000 per Tonne from July 07, 2006.

The Company´s high end Packaging Board Project is well on schedule with the finances having been fully tied-up with reputed investors like IFC and Goldman Sachs. The Company has started seeding the market with imported Board of similar quality. Customer contact programmes and augmentation of distribution network are in full swing. The Company anticipates production to start in the first quarter of calendar year 2007.

Source : Equity Bulls

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