JK Paper Limited, one of India?s largest paper companies, has declared an interim Dividend of 22.5% for the year 2010-11.
The company?s Board has also approved a Rights issue of equity shares for an amount upto Rs 250 cr for part funding the expansion at its Unit JKPM.
The Project is for setting up a new pulp mill of 215,000 TPA and paper machine for manufacturing 165,000 TPA of high grade copier paper.
The plant will incorporate the latest available technology to enhance quality, reduce cost and improve environmental standards further, said the company on Friday.
JK Paper has declared a Profit After Tax (PAT) of Rs. 25.11 Cr. for its 3rd quarter ended 31st December, 2010, a jump of 23.4 % over corresponding period of last year. The increase in PAT for the nine months of the current fiscal was 30.3% over corresponding period of last year (Rs.83.30 Cr vis-?-vis Rs.63.93 Cr.).
Gross Sales for Q3 was Rs. 367.46 Cr. up by 18% over corresponding quarter. Profit before Interest, Depreciation & Taxes (PBIDT) was Rs. 65.93 Cr., up by 8.5%. The company has given effect to the scheme of transfer and vesting its housing undertakings to its 100% subsidiaries which became effective on January 20, 2011.
Harsh Pati Singhania, Managing Director of JK Paper Limited, said that the growth in Sales and Operating Profit during the preceding 9 months and the outlook for the next 3 months have encouraged the Directors to declare an interim dividend.
?The company has finalized the orders for most critical components on a fixed price basis. It is in an advance stage of negotiations with investors and lenders to achieve financial closure. Towards part funding the project the Board has announced a rights issue of upto Rs 250 cr. The draft letter of offer is being filed with SEBI,? said Singhania.
He said the increased Sales and Operating Profit (PBIDT) was possible due to better Sales realization and increased Capacity utilization across all product lines, despite increase in input prices.
He added that the Interest expense for the quarter has come down by 3% to Rs. 11.72 Cr. from Rs.12.04 Cr.
Both Production & Sales volumes have maintained the growth trend in line with previous quarters of the current fiscal. Sales volume during the Quarter was 75,194 MT as against 67,523 MT in the corresponding quarter, an increase of 11.4 %.