JK Paper Q1 net up 20 per cent

New Delhi, Oct 29: As a result of price increase in its products, JK Papers Ltd has effected an increase of 20 per cent in its net profit at Rs 9.68 crore during the first quarter ended September 30, as against Rs 8.07 crore during the same period last year.

During the quarter, the company increased the prices of different variety of paper by Rs 500 to Rs 2,000.

Giving details on the price rise, company's Vice President (Finance) V Kumaraswamy told UNI, ''We had increased the prices of Coated Paper by Rs 2,000 per tonne while that of the Copier was raised by Rs 1,000 per tonne. There were other varieties whose prices were increased by Rs 500 to Rs 1,750 per tonne.'' JK Paper recorded an 18 per cent rise in the net sales at Rs 181.35 crore as compared to Rs 154.03 crore.

''Sales volumes of Coated Paper were up 62 per cent over the corresponding quarter last year and the company was able to increase its selling price. The outlook for this segment is strong with increase in demand. Other segments like branded cut size papers are also exhibiting strong demand growth,'' company's MD Harsh Pati Singhania said.

Mr Kumaraswamy also informed that the Multi-layer Packaging Board Project -- for which the company had planned a total investment of 250 crore -- was 75 per cent complete.

''Civil and mechanical works are almost complete and we are working on the electronic facilities for the project. Out of the total investment earmarked for the project, we have already invested Rs 175 crore,'' he said.

The project will be implemented at CPM Unit of the company in Gujarat. It has a total capacity of 60,000 tonnes per annum.

UNI