(Reuters) -Indian paper and packaging board maker JK Paper reported its seventh consecutive quarter of lower profits on Monday, as high prices of wood pressured its margins.
The company’s consolidated net profit plummeted 72.4% from a year earlier to 762 million rupees ($8.9 million) for the quarter ended March 31.
Indian paper manufacturers are grappling with the dual pressures of escalating wood prices —a key raw material—and lower-priced imports over recent quarters.
The industry has appealed to the government to restrict low-quality imports and provide support amidst global tariff pressures, particularly from the United States.
“Profits have been significantly impacted due to surge in imports at low prices and high wood cost,” Managing Director Harsh Pati Singhania said.
JK Paper’s net revenue from operations declined by 1.7% to 16.90 billion rupees, while expenses increased by 10.4% to 16.09 billion rupees, primarily driven by raw material costs.
This resulted in its margins shrinking to 4.7% from 15.2%.
The New Delhi-based company declared a dividend of five rupees per share.
Smaller rival Andhra Paper posted a near-80% drop in quarterly profit earlier this month, while West Coast Paper Mills and Emami Paper Mills are yet to report results.
($1 = 85.4230 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Tasim Zahid)
