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Weak market conditions and low recoveries have contributed to a 45 per cent drop in net profit Seshasayee Paper and Boards in the first quarter of 2011-12 as compared with the corresponding quarter previously.
It has reported a profit after tax of Rs 8.02 crore (Rs 14.62 crore) on a turnover of Rs 138.49 crore (Rs 125.28 crore) during the quarter. It said the increasing costs of raw materials, fuel and other inputs, weak market conditions in the later part of the first quarter have contributed to the drop in net profit.
Addressing shareholders at the 51{+s}{+t} AGM, its Chairman, Mr N. Gopalaratnam, said large expansions in capacity and increased supplies during the year have contributed to the drop in prices. The acquisition of Subburaj Papers, which has been renamed SPB Papers, is on with Seshasayee acquiring 41.67 per cent and Ponni Sugars (Erode) 33.33 per cent stake. The balance 25 per cent is being acquired by associate companies.
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