Kuantum Papers Q1: Revenue Dips 20.6% Amid Planned Machine Upgrade 2 days ago
Kuantum Papers Limited experienced a significant decline in Q1 financial performance, primarily due to a planned 25-day shutdown of Paper Machine 4 (PM4) for upgrades. Revenue decreased by 20.6% to Rs 223.00 crores, EBITDA fell by 43.6% to Rs 40.00 crores, and net profit dropped by 68.3% to Rs 12.00 crores. The shutdown reduced production by about 9,000 tons. PM4's upgrade was completed on June 30, increasing its daily capacity from 275 to 315-325 tons. The company plans to upgrade other machines by March, aiming to boost overall production capacity. Kuantum Papers is focusing on increasing specialty paper production from 20% to 30% by next fiscal year end and is progressing with a Rs 735.00 crore CAPEX plan. Despite short-term impacts, the company remains optimistic about long-term prospects from these upgrades and expansions.
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