The Paper Products Ltd 9 Months Performance Net Sales up by 18%

Mumbai, October 27, 2006: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the third quarter and the nine months ended September 30, 2006. The company achieved sales of Rs.373.99 crores during the nine months representing a growth of 17.7%, over sales of Rs.317.80 crores in the corresponding nine months of 2005. Continued focus on the company's innovation program NASP "New Applications Structures and Products & Processes" helped to achieve better sales. The profit before tax & extra ordinary items is Rs.33.56 crores as compared to Rs.27.01 crores in nine months last year. The basic and diluted earnings per share excluding extra ordinary items for the nine months is Rs.20.70 as compared to Rs.15.95 in the corresponding period last year.

On comparison between quarters, the company achieved sales of Rs.132.34 crores during the third quarter representing a growth of 27%, over sales of Rs.104.19 crores in the corresponding third quarter of 2005. The profit before tax & extra ordinary items is Rs.11.63 crores as compared to Rs.9.85 crores in Q3 last year. The basic and diluted earnings per share excluding extra ordinary items for the quarter is Rs.7.93 as compared to Rs.5.92 in the corresponding period last year.

Consequent to floods on 26th July 2005 at Thane plant an insurance claim was made for damaged assets. Claim has been settled during the quarter. The Extraordinary item for Q3 2006 of Rs.12.08 crores represents the difference between the settlement amount, the expenditure already incurred upto 30 September 2006 and provision of Rs.5.61 crores estimated to be further incurred on repairs to give a true and fair view of the surplus.

The surplus is being utilised for replacing the damaged discarded equipment. In accordance with accounting standard 10 the cost of new equipment will be capitalised.

Consequently the profit before tax & after extra ordianry items for the Q3-2006 is Rs.23.71 crores & for 9 months ended 30th September 2006 is Rs.45.64 crores. The basic and diluted earnings per share including extra ordinary items for the quarter is Rs.13.05 as compared to Rs.5.25 in the corresponding period last year. The basic and diluted earnings per share including extra ordianry items for the 9 months ended 30th Septmeber 2006 is Rs.25.82 as compared to Rs.15.28 in the corresponding period last year.

As announced earlier, the company has decided to set up a production facility in North India at a cost of Rs.65 crores over a 2 year period. Work on project is progressing satisfactorily & production is expected to commence in November 2006 in a phased manner.

Source : Equity Bulls

Keywords