West Coast Paper Mills Ltd Q3FY24 consolidated PAT drops QoQ to Rs. 158.76 crores

West Coast Paper Mills Limited (BSE: 500444, NSE: WSTCSTPAPR), has reported its unaudited financial results for the quarter ended 31st Dec 2023.

Decline in Revenue and Profits:

West Coast Paper Mills reported a decline in both consolidated and standalone revenues for the third quarter of FY24. Consolidated revenue stood at ₹1,045.13 crores, reflecting a 12% decrease compared to the previous quarter. Similarly, standalone revenue witnessed a sharper decline of 20%, amounting to ₹564.73 crores. This decline can be attributed to various factors such as reduced demand, logistical challenges, and pricing pressures in the market.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also witnessed a significant decline. Consolidated EBIDTA stood at ₹258.97 crores, down by 25% from the previous quarter, while standalone EBIDTA declined by 45% to ₹124.55 crores. This decrease in EBITDA indicates the impact of rising input costs and operational challenges faced by the company during the quarter.

Profit After Tax Margin Shrinks:

West Coast Paper Mills reported a decline in its Profit After Tax (PAT) margin for both consolidated and standalone operations. The PAT margin decreased by 300 basis points to 15% for the consolidated entity and by 800 basis points to 14% for the standalone entity. This decline in profitability can be attributed to lower revenue, higher operating expenses, and increased competition in the industry.

Impact on Earnings Per Share (EPS):

The company's earnings per share (EPS) also witnessed a significant decline during the quarter. Consolidated EPS stood at ₹20.58, down by 29% compared to the previous quarter, while standalone EPS declined by 50% to ₹11.76. This decline in EPS reflects the overall decrease in profitability and the adverse impact on shareholder returns.

Commenting on the results Mr. S.K. Bangur, Chairman & Managing Director, West Coast Paper Mills Limited said: "During the Current Quarter, in the first week of November, there was a major breakdown in one of the TG sets at company's paper division at Dandeli, Karnataka. Accordingly, working of the Company got adversely impacted. The TG Set got restarted in the last week of December and now working normal."

Shares of West Coast Paper Mills Limited was last trading in BSE at Rs. 632.50 as compared to the previous close of Rs. 650.85. The total number of shares traded during the day was 51897 in over 2949 trades.

The stock hit an intraday high of Rs. 669.85 and intraday low of 621.60. The net turnover during the day was Rs. 32948691.00.

Source : Equity Bulls

Keywords

WestCoastPaperMills INE976A01021 Q3FY24 9MFY24 ResultUpdate