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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
Upon examining the financial data for BSE code 532162, it becomes clear that the company achieved a notable five-year profit of 15 percents, which impressively increased to 40 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of -16 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 29 percents over the five-year period to just 16 percents in the last year. The ten-year average stock price, which sits at 31 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
The company has a market capitalization of ₹7,559 crore and is currently trading at a stock price of ₹446. Over time, the stock has fluctuated between the historical highs and lows of ₹639 / 319, reflecting the market's volatility. With a Price-to-Earnings (P/E) ratio of 7.93, the stock appears highly valued, indicating that investors are willing to pay a premium for its earnings potential. The company's book value per share stands at ₹299, showcasing the underlying asset value. Additionally, the dividend yield is 1.90%, suggesting that the company offers shareholders a moderate return on their investment in the form of dividends. The Return on Capital Employed (ROCE) is 21.3%, indicating the efficiency with which the company generates profit from its capital. Meanwhile, the Return on Equity (ROE) is 24.6%, highlighting the profitability relative to shareholder equity. Despite these figures, the company maintains a very low debt-to-equity ratio of 0.43, signaling minimal leverage. It also reports a net cash flow of ₹27.5 crore, reflecting the company's ability to generate cash. The Piotroski score is 7.00, a measure of the company's financial strength, while the Graham Number estimates the intrinsic value of the stock at ₹615. The Price-to-Book (P/B) ratio of 1.49 further suggests that the stock is trading at a premium relative to its book value, potentially reflecting positive market sentiment or expectations of future growth.
