The company has completed the Mill Development Plan (MDP) during May 2008. The pulp production capacity has been increased from 520 tpd to 720 tpd with ECF bleaching. The benefit of higher production of in-house pulp started accruing from June 2008.

The company has initiated action for implementing the Mill Expansion Plan for increasing the capacity to 4,00,000 Mts per annum by adding a new Paper Machine (PM 3). The additional capacity will be available from June 2010.

The company’s net sales for the quarter ended June 2008 grew by 16% to Rs 248.43 crore. Production during the quarter was 62511 Mts against 56780 Mts in the previous year. The company’s paper sale in India grew by 19% to Rs 205.68 crore while export sales decreased by 15% to Rs 35.81 crore.

The operating profit margin (OPM) of the company decreased by 70 basis points to 23.8%. The decrease in OPM is due to increase in raw material & work in progress stock cost and power, fuel & water charges. Despite it, top line growth has helped the company’s net profit to increased by 4% to Rs 24.65 crore.

The company’s net sales for the year ended March 2008 grew by 10% to Rs 938.53 crore. The company’s revenue from paper sales increased by 11% to Rs 903.81 crore while energy sales increased by 7% to Rs 154.59 crore. The company’s paper sale in India grew by 20% to Rs 757.20 crore while export sales decreased by 20% to Rs 146.61 crore. The company’s annual production of printing and writing paper increased by 6% to 2.45 lakh tonne representing a capacity utilization of 107%.

OPM of the company increased by 260 basis points to 24.7%. The increase in OPM is due to decline in other expenditure, power, fuel & water charges, repair & maintenance cost and employee cost. As a result, PBT before EO items increased by 28% to Rs 163.21 crore.

For quarter ended June 08

The company’s net sales for the quarter ended June 2008 grew by 16% to Rs 248.43 crore. Production during the quarter was 62511 Mts against 56780 Mts in the previous year. The company’s paper sale in India grew by 19% to Rs 205.68 crore while export sales decreased by 15% to Rs 35.81 crore.

OPM of the company decreased by 70 basis points to 23.8%. The decrease in OPM is due to increase in raw material & work in progress stock cost by 320 basis points to 8% and power, fuel & water charges by 770 basis points to 31% of adjusted net sales. However, there was declined in staff cost by 140 basis points to 7%, repair & maintenance by 120 basis points to 5%, raw material cost by 60 basis points to 30% and other expenditure by 60 basis points to 12% of adjusted net sales. Despite it, the operating profit of the company grew by 13% to Rs 59.08 crore.

Other income of the company increased by 29% to Rs 6.57 crore resulting in increase in profit before interest, depreciation and tax (PBIDT) by 14% to Rs 65.65 crore. Interest paid during the quarter increased by 76% to Rs 9.03 crore. Depreciation also inclined by 30% to Rs 22.27 crore. As a result, PBT has decreased by 3% to Rs 34.35 crore.

Tax outgo during the quarter decreased by 16% to Rs 9.70 crore. As a result, the net profit of the company increased by 4% to Rs 24.65 crore.

For the year ended March 08

The company’s net sales for the year ended March 2008 grew by 10% to Rs 938.53 crore. The company’s revenue from paper sales increased by 11% to Rs 903.81 crore while energy sales increased by 7% to Rs 154.59 crore. The company’s paper sale in India grew by 20% to Rs 757.20 crore while export sales decreased by 20% to Rs 146.61 crore. The company’s annual production of printing and writing paper increased by 6% to 2.45 lakh tonne representing a capacity utilization of 107%.

OPM of the company increased by 260 basis points to 24.7%. The increase in OPM is due to decline in other expenditure by 110 basis points to 12%, power, fuel & water charges by 90 basis points to 21%, repair & maintenance cost by 90 basis points to 5% and employee cost by 90 basis points to 5%. However, raw material and chemicals cost grew by 110 basis points 30%. As a result, the operating profit of the company grew by 23% to Rs 231.87 crore.

Other income of the company increased by 22% to Rs 31.13 crore. PBIDT increased by 23% to Rs 263 crore. Interest paid during period increased by 18% to Rs 24.25 crore. Depreciation also inclined by 13% to Rs 75.54 crore. As a result, PBT before EO items increased by 28% to Rs 163.21 crore.

EO expenses of the company have declined by 93% to Rs 0.15 crore. The PBT after EO increased by 30% to Rs 163.06 crore. Tax outgo increased 29% to Rs 50.23 crore. The company’s net profit has increased by 31% to Rs 112.83 crore for the FY 08.

Paper

The paper business contributed 84% to the company’s revenues for the quarter ended June 2008. Net sales grew by 20% to Rs 241.49 crore. PBIT margins have declined by 122 basis points to 17.7%. As a result, PBIT increased by just 12% to Rs 42.76 crore. The segment accounted for 94% of company’s total PBIT.

For the year ended March 2008, Paper contributed 85% to the total revenue of the company. Net sales grew by 11% to Rs 903.81 crore. PBIT margins inclined by 226 basis points to 20%, resulting in increase in PBIT by 25% to Rs 180.78 crore. The segment accounted for 92% of company’s total PBIT.

Energy

The energy business contributed 16% to the entity’s revenues for the quarter ended June 2008. The net sales of energy business have inclined by 24% to Rs 47.14 crore. PBIT margins have decreased by 519 basis points to 5.8%, resulting in decrease in PBIT by 34% to Rs 2.74 crore. The segment contributed 6% to the total PBIT of the company.

For the year ended March 2008, the energy business contributed 15% to the entity’s revenues. The net sales of energy business have inclined by 7% to Rs 154.59 crore. PBIT margins have increased by 385 basis points to 10%. As a result, the company’s energy business reported PBIT of Rs 15.46 crore, a growth of 74%. The segment contributed 8% to the total PBIT of the company.

The impact of changes in exchange rate pertaining to unhedged foreign currency assets and liabilities as an June 30,2008 and anticipated future foreign currency assets and liabilities covered by forward contents have not been considered. In case such items are revalued at the closing exchange rate on June 30,2008 the net result would have been lower by Rs 2.69 crore.

The scrip was trading at Rs 93.20 on 29^th July 2008 on BSE.