Shree Karthik Papers Reports 10.7% Revenue Growth and Returns to Profitability in Q1

Shree Karthik Papers Limited , a manufacturer of writing and printing papers, has reported a strong performance for the first quarter, marking a return to profitability and showcasing significant growth in key financial metrics.

Financial Highlights

• Revenue Growth: The company's revenue from operations reached ₹15.95 crore, representing a growth of 10.7% year-on-year and 10.6% quarter-on-quarter.
• Profitability: Shree Karthik Papers reported a net profit of ₹3.35 crore, a substantial improvement from the loss of ₹3.68 crore in the previous quarter and a 41.9% increase from the profit of ₹2.36 crore in the same quarter last year.
• Total Income: The total income for the quarter stood at ₹16.14 crore, up 11.8% year-on-year and 13.4% quarter-on-quarter.

Operational Performance

• Cost Management: Despite the increase in revenue, the company managed to control its costs effectively. The cost of materials consumed rose to ₹9.67 crore, an increase of 24.2% year-on-year but only 5.7% quarter-on-quarter.
• Employee Expenses: Employee benefit expenses decreased to ₹0.41 crore from ₹0.56 crore in the previous quarter, indicating improved operational efficiency.
• Finance Costs: The company reduced its finance costs to ₹0.10 crore from ₹0.13 crore in the previous quarter, suggesting better financial management.

Earnings Per Share

The company's improved performance is reflected in its earnings per share (EPS) figures:

• Basic and diluted EPS: ₹0.18
• This marks a significant improvement from the -₹0.19 EPS in the previous quarter

Management Approval and Auditor's Review

The Board of Directors of Shree Karthik Papers Limited approved these financial results. The results were reviewed by the Audit Committee before being presented to the Board.

According to the Limited Review Report issued by Paul & Aravind LLP, Chartered Accountants, the financial results are in accordance with applicable accounting standards and other recognized accounting practices and policies. The auditors found no material misstatements in the financial results.

Segment Information

Shree Karthik Papers Limited operates in a single segment, focusing on the manufacture of writing and printing papers, as per Indian Accounting Standard 108.

The company's return to profitability and strong revenue growth indicate a positive trajectory, potentially reflecting improved market conditions and effective management strategies in the paper manufacturing sector.