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Highlights
- Sales over the Year and quarter: The company’s sales declined by -0.05 % over the year, substantial increase in net sales/revenue by 0.73 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 40.12 %. Marginal increase in other income during this quarter, up by 2.48%.
- Profit over the Year and quarter: Challenges in sustaining profitability for JK Paper Ltd.. Profit dropped by -1.74 % Year to Year, JK Paper Ltd.’s profitability increased by 17.87 % in this quarter.
- EPS over the Year and quarter: EPS declined by -1.63 % Year to Year. EPS increased by 17.22 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1719.42 Cr | Rs. 1706.22 Cr | Rs. 1718.61 Cr | + 0.73 % | -0.05 % |
| Expenses | Rs. 1235.71 Cr | Rs. 1333.98 Cr | Rs. 1359.66 Cr | + 1.93 % | + 10.03 % |
| Operating Profit | Rs. 483.71 Cr | Rs. 372.24 Cr | Rs. 358.95 Cr | -3.57 % | -25.79 % |
| OPM % | 28.13 % | 21.82 % | 20.89 % | -0.93 % | -7.24 % |
| Other Income | Rs. 41.03 Cr | Rs. 56.1 Cr | Rs. 57.49 Cr | + 2.48 % | + 40.12 % |
| Interest | Rs. 63.11 Cr | Rs. 80.23 Cr | Rs. 34.62 Cr | -56.85 % | -45.14 % |
| Depreciation | Rs. 80.6 Cr | Rs. 83.34 Cr | Rs. 63.35 Cr | -23.99 % | -21.4 % |
| Profit before tax | Rs. 381.03 Cr | Rs. 264.77 Cr | Rs. 318.47 Cr | + 20.28 % | -16.42 % |
| Tax % | 25.59 % | 10.73 % | 12.52 % | + 1.79 % | -13.07 % |
| Net Profit | Rs. 283.52 Cr | Rs. 236.36 Cr | Rs. 278.6 Cr | + 17.87 % | -1.74 % |
| EPS in Rs | Rs. 16.54 | Rs. 13.88 | Rs. 16.27 | + 17.22 % | -1.63 % |
Today, we’re looking at JK Paper Ltd.’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -0.05 %. However, it did see a marginal increase of 0.73 % from the previous quarter. Expenses ticked up slightly by 1.93 % quarter-on-quarter, aligning with the annual rise of 10.03 %. Operating profit, while down -25.79 % compared to last year, faced a quarter-on-quarter dip of -3.57 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -7.24 %, but a shrinkage of -0.93 % sequentially. Other income rose by 2.48 % compared to the last quarter, despite an annual growth of 40.12 %. Interest expenses dropped significantly by -56.85 % from the previous quarter, yet the year-over-year decrease remains at a moderate -45.14 %. Depreciation costs fell by -23.99 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -21.4 %. Profit before tax declined annually by -16.42 % but saw an increase from the preceding quarter by 20.28 %.
Tax expenses as a percentage of profits decreased slightly by -13.07 % compared to last year, with a more notable quarter-on-quarter increase of 1.79 %. Net profit fell by -1.74 % year-on-year but experienced a 17.87 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -1.63 % but a quarterly rise of 17.22 %. In summary, JK Paper Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1719.42 Cr | Rs. 1706.22 Cr | Rs. 1718.61 Cr | + 0.73 % | -0.05 % |
| Expenses | Rs. 1235.71 Cr | Rs. 1333.98 Cr | Rs. 1359.66 Cr | + 1.93 % | + 10.03 % |
| Operating Profit | Rs. 483.71 Cr | Rs. 372.24 Cr | Rs. 358.95 Cr | -3.57 % | -25.79 % |
| Net Profit | Rs. 283.52 Cr | Rs. 236.36 Cr | Rs. 278.6 Cr | + 17.87 % | -1.74 % |
| EPS in Rs | Rs. 16.54 | Rs. 13.88 | Rs. 16.27 | + 17.22 % | -1.63 % |
In reviewing JK Paper Ltd.’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -0.05 % year-on-year, however, there was a minor increase of 0.73 % from the previous quarter. Expenses rose by 10.03 % compared to the previous year, with a 1.93 % increase quarter-on-quarter. Operating Profit dropped by -25.79 % annually, and saw a -3.57 % decrease from the last quarter.
Net Profit showed yearly decrease of -1.74 %, and experienced a 17.87 % increase from the previous quarter. Earnings Per Share (EPS) fell by -1.63 % annually, however rose by 17.22 % compared to the last quarter. In essence, while JK Paper Ltd. faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
40
3-Year Profit
15
5-Year Profit
32
10-Year Profit
446
Current Price
7,559
Market Cap
The financial outlook for the company under BSE code 532162 reveals a significant five-year profit of 15 percents. This marks a notable increase to 40 percents over the last three years, indicating a strong upward trend in the company's financial health during this period. However, it's important to note that recent challenges have impacted the company's performance, leading to a trailing twelve-month loss of -16 percents. This sharp decline in profitability is particularly concerning, as the company has also reported no sales across any analyzed timeframe, suggesting a highly unconventional and perhaps risky operational approach. The company's stock prices mirror this financial volatility, with the stock trading at 29 percents over the past five years but experiencing a dramatic drop to 16 percents within the last year. Over a decade, the stock price was at 31 percents, reflecting long-term concerns regarding the company's stability and future outlook. Such performance poses questions about the sustainability of the business and whether it can rebound from these recent setbacks.
The company currently holds a market cap of ₹7,559 crore, with its stock trading at ₹446. Historically, the stock has fluctuated between ₹639 / 319, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at 7.93, indicating that the stock is perceived as highly valued by the market, possibly driven by expectations of future earnings growth. The book value per share is ₹299, which offers insight into the company's intrinsic worth, while its dividend yield of 1.90% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is 21.3%, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is 24.6%, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at 0.43, which is a positive indicator of financial stability. However, the company’s net cash flow of ₹27.5 crore raises concerns about its liquidity position. The Piotroski score of 7.00 reflects the company’s overall financial health, while the Graham Number of ₹615 suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of 1.49 indicates that the stock is trading at a premium to its book value, which might imply market optimism about the company's future growth prospects.
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