Jatinder Singh, Chairman & Whole Time Director and Vipin Gupta, Chief Financial Officer & Executive Director addressed the call.

Highlights of the call:

The company's white writing and printing paper is used in the fabrication of note books and writing material; the colored paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children's coloring books, colored copier paper and bill books.

Its Kraft paper finds its application in the packaging industry for making corrugated boxes/cartons and for other packaging requirements.

Its writing and printing paper is manufactured by using agricultural residues, such as wheat straw, Baggase, sarkanda and other materials. Its semi kraft paper is manufactured by using agriculture residues, such as Bagasse, wheat straw, rice straw, sarkanda and indigenous and imported waste paper.

The company also manufactures special grade of Kraft paper called DTY Grade and POY Grade. These grades of paper are used to produce textile tubes and paper core-pipes, which are consumed by yarn manufacturing corporates.

The company had a good quarter considering the fact that GST was rolled out at the beginning of this quarter and company undertook overhauling of its power co-generation Plant, which lasted about 18 days affecting overall performance.

But without this event the performance would have been in line with the previous quarter performance.

For the quarter ended September 2017, sales stagnated at Rs 104.02 crore. OPM fell 10 bps to 15.4% which resulted in stagnant OP at Rs 16.04 crore. PBT went up 13% to Rs 12.84 crore. PAT went up 12% to Rs 8.39 crore.

For the six months, sales grew 11% to Rs 222.73 crore. OPM improved 140 bps to 17.3% which saw OP grow 21% to Rs 38.60 crore. PBT went up 39% to Rs 30.97 crore. PAT went up 37% to Rs 20.21 crore.

For the quarter, the production of the company for Kraft Paper unit was 17988.823 MT as compared to 16415.48 MT.

The production of Writing and Printing paper was 9570.308 MT as compared to 12632.119 MT.

During the quarter the company had undertaken overhauling of its cogeneration plant, which has resulted in lesser production equivalent to 18 days of writing & printing paper unit

The company hopes to recover this loss by the end of FY 2018 as the benefit from the same starts.

The management is quite confident of meeting the year end targets for the performance of the company.

The company continued to strengthen its overall brand as a dependable forward-looking manufacturer.

Q1 Kraft paper realization was Rs 29673 writing paper 57326

In Q2 Kraft paper realization was Rs 17780 and writing and printing paper realization was Rs 52584.

The fall in relisation was of around 5% due to GST.

Now the prices have started going up. For October the realization of writing and printing paper grew to Rs 53500 and that of kraft paper gore to Rs 28000.

Few plants in China have been closed and so the company was able to export to China.

China is buying and so prices of Kraft paper should remain firm. Prices normally come down in November and December.

Price of major chemical, caustic soda has increased.

In a competitive paper manufacturing industry (Writing & Printing and Kraft), it is virtually impossible to pass cost increases to customers.

The company is planning capex of Rs 42 crore. This will go in both Kraft papers and writing and printing papers. In Kraft paper the company will give value added products after this capex.

The company hopes to achieve sales of 73000 for writing and printing paper and 50000 for Kraft paper.

Outlook for writing and printing paper will be difficult to give. But the company should be able to have realization of last year's average. The price of writing paper should touch back to Rs 57000 in this quarter. Already the company is taking orders for Rs 55000.

The Ballarpur story is over now. The system has absorbed the vacuum created by Ballarpur. Nothing new will come up now.

Ruchira Papers has emerged among the most competitive agro-based paper manufacturers in India today.

The Punjab plant will commence in March 2020. The company will be adding 125000 tons.

Demand for both writing and printing paper and Kraft paper is good.

Last quarter saw some disruption due to GST. This is being made up in the current orders.