BENGALURU (Reuters) – India’s JK Paper reported a fall in profit for a fifth-straight quarter on Monday, hit by rising prices of wood – a key raw material used to manufacture paper and packaging materials.
The company said its consolidated net profit fell 57% to 1.29 billion rupees ($15.3 million) in the quarter ended Sept. 30.
JK Paper has been grappling with rising wood prices in the last few quarters that have bumped up input costs.
The industry has also struggled with lower selling prices of its products as demand remains subdued following a post-pandemic surge.
The company’s expenses rose nearly 15% to 15.70 billion rupees, mainly due a 21% rise in input costs.
Its net revenue rose 2% to 16.83 billion rupees.
JK Paper, which supplies office paper, coated paper, writing and printing paper and packaging boards, has customers in more than 60 countries, according to its website.
Peer Emami Paper Mills is set to report its quarterly results later this week.
JK Paper’s shares closed 2% lower ahead of its results.
($1 = 84.0860 Indian rupees)
(Reporting by Nishit Navin and Ashna Teresa Britto in Bengaluru)
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