JK Paper: Q4FY14 Result Analysis

JK Paper's topline recorded a strong growth of 33% to Rs 513 crore in Q4FY14 against Rs 386 crore in the same quarter last year. Further EBITDA of the company showed similar trend and went up by 62% to Rs 60 crore in the said period as against Rs 37 crore in Q4FY13.

However bottomline of the company recorded loss of Rs 14.25 crore in Q4FY14 against profit of Rs 21 crore in the same quarter last year. The bottomline of the company was hit by exceptional growth in finance cost of the company that surged by 337% to Rs 47.4 crore in Q4FY14 against Rs 10.8 crore in the same quarter last year.

On the operational front, the company has recorded increase in its major expenses during Q4FY14. Cost of material for the company came up to 60.8% of total operating revenue in Q4FY14 from 56.7% of total operating revenue in the same quarter last year. Further other expenses went up to 8.4% of total operating revenue during the said period against 6.2% in Q4FY13. However employee expenses and power & fuel cost showed marginal improvement during the quarter and came down to 8.5% and 9.4% of total operating revenue in Q4FY14 from 9.4% and 10.7% respectively in the same period last year.

Coming to the annualized performance for FY14, JK Paper's performance during FY14 was not satisfactory. The company's topline grew by 19% to Rs 1738 crore in FY14 from Rs 1459 crore in last fiscal year. However EBITDA of the company remained muted during the year and stood at Rs 140 crore during FY14 against Rs 139 crore in FY13. Moreover bottomline of the company recored loss of Rs 74.7 crore during the said year against profit Rs 38 crore in last fiscal year.