TNPL Q2 Profit Surges 78 Per Cent

Tamil Nadu Newsprint and Papers Ltd on Wednesday (TNPL) share prices jumped more than nine per cent to Rs 225.20 on the BSE in early trade on a robust second quarter of the current year result. A huge jump in net profit and income helped the stock make a new 52-week high on both the stock exchanges.

TNPL reported a 78 per cent jump in net profit for the second quarter of the current year compared with the corresponding quarter previously. For the quarter ended September 30, 2015, TNPL’s net profit was Rs 59.84 crore as against Rs 33.51 crore during corresponding period of previous year. The total net income from operations also grew by 17.54 per cent to Rs 544.63 crore, as it was Rs 463.34 crore during same period in FY15.

Improved sales and cost control have contributed to the growth in net profit, according to a release from the company.

EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 24.6 per cent to Rs 141.07 crore in Q2FY16 as against Rs 113.35 in Q2FY15 due to margin improved 142bps to 25.41 per cent inQ2FY16.

It expects to commission a 2-lakh-tonne-a-year multi-layer board plant by next month. The project is coming up in Tiruchi. This greenfield plant will add to its existing paper production capacity taking the total to over 6 lakh tonnes a year.

For six months, ending September 30, 2015, the company’s net profit at Rs 111.48 crore, rose by 86.6 per cent Y-o-Y. The company's revenue at Rs 1,202.8 crore registered growth of 25.5 per cent Y-o-Y.

Yesterday, the stock price marginally up by 0.98 per cent to Rs 206.2. Currently, the stock was up 6.30 per cent to Rs 219.20 on the BSE.