APPML reports 40% jump in net profit at Rs 35 cr

New Delhi, Jun 28 (UNI) Andhra Pradesh Paper Mills (APPML), manufacturer of writing and printing paper, today reported a 40 per cent increase in its net profit at Rs 35 crore, for the year ending March 31, 2006.

The net profit was up to Rs 7.54 crore in the current quarter as compared to Rs 6.36 crore for the corresponding quarter last fiscal.

APPML will invest Rs 635 crore in the mill development plan project for expansions, modernisation and upgradation of its pulp and paper making facilities, and is set to complete phase-I of the project involving over Rs 500 crore by August 2006.

The company also plans to introduce the ERP system with an investment of Rs 4 crore.

Commenting on the results, APPML Executive Director R C Mall said, ''APPML's results are in line with its predictions. On the completion of this project, we are expecting a benefit of 6-7 per cent in the form of improved sale realisation and 12-13 per cent by way of cost reduction. With the completion of this project we would be able to increase our production capacity from 1,53,500 tpa to 1,77,000 tpa, apart from surplus pulp to the tune of 30,000 tpa.'' APPML, part of the Kolkata Based L N Bangur group, is a leading manufacturer of paper and caters to the domestic and foreign markets.

With two manufacturing plants in Andhra Pradesh and a total capacity of 1,53,500 tpa, APPML produces writing, printing, packaging paper and newsprint.

UNI RA ARB RS2045