📉 From ₹1,209 Cr to ₹782 Cr: JK Paper’s FY25 Profit Takes a 35% Cut – What’s Next?

📉 From ₹1,209 Cr to ₹782 Cr: JK Paper’s FY25 Profit Takes a 35% Cut – What’s Next?

📅 May 19, 2025 | ✍️ By Prashant Marathe | EduInvesting.in


🧾 At a Glance

JK Paper has released its audited results for FY25 and the story isn’t hard to read — unless you’re allergic to falling profits.

  • FY25 Net Profit: ₹782 Cr (down 35% from ₹1,209 Cr in FY24)
  • FY25 Revenue from Operations: ₹5,732 Cr (flat vs last year)
  • Q4 FY25 Profit: ₹124 Cr (vs ₹260 Cr in Q4 FY24 – down 52%)
  • EPS for FY25: ₹44.57 (vs ₹68.91 last year)
  • Margins took a mild hit, not a free fall

So… Is the paper industry bleeding ink? Or is this just a seasonal smudge? Let’s break it down — EduInvesting style.


🏭 About JK Paper Ltd

For the uninitiated: JK Paper is one of India’s largest paper manufacturers, part of the JK Organisation, and a household name in notebooks, office stationery, and printing solutions.

  • Think JK Copier, JK Cedar, and JK Maxima — the white sheets your printer loves and your wallet hates.
  • The company operates 3 integrated pulp and paper mills across Gujarat, Odisha, and Telangana.
  • It’s not just A4 sheets — JK also makes packaging board, coated paper, and specialty paper for food and pharma.

But despite running a literal “money-printing” business (almost), FY25 was far from a fairy tale.


👨‍💼 Key Managerial Personnel (KMP)

  • Chairman & Managing Director: Harsh Pati Singhania
    — Known for his long-term vision and focus on sustainability.
  • CFO: Arvind Mathur
    — The man behind the numbers. Hope he’s got thicker skin this quarter.
  • Company Secretary: Alka Bhatia
    — Probably the only person smiling because the compliance section was spotless.

💰 Financials: FY25 vs FY24 (Standalone)

Let’s get to the heart of it — the numbers that make or break investors’ hearts.

📊 Annual Snapshot (₹ in Crores)

MetricFY25FY24Change
Revenue from Operations₹5,731.64₹5,764.34-0.6%
Total Income₹5,898.18₹5,942.55-0.7%
EBITDA₹1,315.45₹1,950+~-32% est.
Net Profit (PAT)₹782.19₹1,208.78-35.3%
Basic EPS₹44.57₹68.91-35.3%

Revenue held steady, but margins clearly squeezed.
Profit fell ₹427 Cr, not small change for a paper mill.


📉 Q4 FY25 Breakdown: January – March 2025

MetricQ4 FY25Q4 FY24% Change
Revenue from Operations₹1,438.97 Cr₹1,511.64 Cr-4.8%
Net Profit₹124.45 Cr₹260.42 Cr-52.2%
EPS₹7.09₹14.83-52.2%

That’s not just a bad quarter — that’s a “printer ran out of toner” quarter. Demand slowed, input costs played spoilsport, and power/fuel costs didn’t help.


🧠 Forward-Looking Fair Value (FV) Estimate

Let’s play analyst.

  • Paper industry is cyclical but essential.
  • PE multiples for mid-cap manufacturing like JK Paper usually trade between 6x to 10x earnings.
  • Assuming normalized FY26 EPS rebounds to ₹55–₹60, a fair value range looks like:

Forward FV Estimate = ₹55 × 8 = ₹440 (base case)

So current price (₹370–₹390 range) leaves some upside, assuming no further earnings drop.


🔮 Estimated Growth & Industry Outlook

The paper sector is in a weird spot:

📈 Positives:

  • Bans on single-use plastics are boosting paper packaging demand.
  • Education and office segment recovering post-pandemic.
  • JK Paper has invested heavily in capacity expansion and green energy.

📉 Negatives:

  • Raw material prices (wood pulp, coal) volatile.
  • Imports from China, Indonesia, and ASEAN pose pricing pressure.
  • Paper usage is still declining in core office printing due to digitization.

In short: steady growth, but expect margin swings.


🧠 EduInvesting Take

Let’s be honest — JK Paper didn’t have a great FY25, and Q4 was more of a paper cut than a punch. But it’s not all gloom:

  • The business model is still strong.
  • Cash flows are stable.
  • It’s a dividend-paying, debt-managed manufacturer — rare combo.

Think of JK Paper like an old-school diary in a digital world — not sexy, not fast-growing, but reliable if margins hold.

If the profit slide stabilizes and global pulp prices normalize, JK Paper could bounce.

But investors expecting ₹1,000 Cr+ profit years on repeat may need to turn the page.


🚩 Risks & Red Flags

  • Commodity Input Risk: Pulp, chemicals, coal – they don’t have fixed prices, and that hurts.
  • China Imports: Cheaper paper dumping can eat into margins.
  • Demand Shifts: Digitization isn’t stopping anytime soon.
  • Flat Revenue: Even in a year with capacity, growth was… paper thin.

📝 Final Verdict: Should You Hold, Fold, or Print?

If you’re in it for the long haul and love steady dividend-paying stocks with occasional upswing, JK Paper still has a case.

But if you’re expecting a multi-bagger from here? You might be living in La La Land (or your school library).

EduInvesting Rating: 🟨 Neutral

“Margins may be thin, but the pages aren’t torn.”


📜 Published: May 19, 2025 | Author: Prashant Marathe
📊 Category: Nifty 500, Manufacturing, Results Season
🔎 Structured for Google News: NewsArticle Schema Enabled

Prashant Marathe

https://eduinvesting.in

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