Mumbai, May 6 (IANS) Branded paper company JK Paper on Friday reported a rise of 51 percent in its net profit for the fourth quarter (Q4) of 2015-16.
The company's net profit stood at Rs.27.28 crore for the quarter ended March 31, 2016, from Rs.18.07 crore in the corresponding quarter of 2014-15.
According to the branded paper manufacturer, its gross sales for the quarter under review increased by 17 percent to Rs.786.45 crore from Rs.671.81 crore for the quarter ended March 31, 2015.
The firm's Q4 EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by 23 percent to Rs.114.10 crore from Rs.92.63 crore in the previous corresponding quarter.
For the full financial year 2015-16, the company's net profit stood at Rs.79.56 crore against a net loss of Rs.12.74 crore in 2014-15.
The company declared its highest ever annual sales and EBITDA during the year ended March 31, 2016.
The branded paper manufacturer's gross sales for the period under review increased by 15 percent to Rs.2,881.45 crore.
The EBITDA for 2015-16 increased by 58 percent to Rs.420.83 crore from Rs.266.49 crore the previous fiscal.
The company said that the significant operational improvement in its financial performance was due to the substantial benefits derived from the new state-of-the-art pulp and paper plant at its Odisha unit.
The company elaborated that growth in market share in its mainstay office papers business and a richer product mix helped it to improve its financial performance.
"The company has been able to increase its exports despite tough overseas markets," said Harsh Pati Singhania, vice chairman and managing director, JK Paper in a statement.
The company announced that as part of its ongoing fund raising programme, it has decided to issue FCCBs (foreign currency convertible bonds) not exceeding $25 million.
"The proceeds will be used for repayment, pre-payment of existing ECBs (external commercial borrowings), FCCBs and to meet capital expenditure," Singhania said.
In addition, the company's board of directors recommended a dividend of Re.0.50 per equity share.
"The Board of Directors has also approved issue of FCCB not exceeding $25 million subject to necessary shareholder, contractual and regulatory approvals," the statement added.
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