(Reuters) -Indian paper and packaging board maker JK Paper posted its eighth consecutive quarter of profit fall on Monday, as the rising cost of wood pressured margins.
The company, which counts Unilever, Nestlé and Alkem among its key clients, said consolidated net profit after tax fell 41.8% to 747.5 million rupees ($8.50 million) for the quarter ending in September from 1.29 billion rupees a year ago.
India’s wood panel industry is grappling with a dual squeeze – cheap imports are eroding pricing power, while elevated domestic wood costs continue to strain margins.
JK Paper had cautioned in the previous quarter that the upcoming fiscal year could prove more challenging, citing intensified competition and a surge in low-cost imports from ASEAN countries as key headwinds.
The industry has urged the Indian government to curb low-grade imports and enforce quality controls, warning that recent U.S. tariffs on Asian exporters could worsen the influx of cheap material.
Expenses rose 6.2%, driven by a 7.7% increase in raw material costs, while revenue from operations rose 3.9% to 17.49 billion rupees.
Its shares closed 0.3% higher ahead of its results.
($1 = 87.8950 Indian rupees)
(Reporting by Yagnoseni Das in Bengaluru; Editing by Ronojoy Mazumdar and Janane Venkatraman)
