Ballarpur Ind net more than doubles, to raise prices again

Ballarpur Ind net more than doubles, to raise prices again
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First Published: Wed, Apr 21 2010. 08 06 PM IST
Updated: Wed, Apr 21 2010. 08 06 PM IST
New Delhi: India’s largest paper maker, Ballarpur Industries, expects to improve margin in the current quarter on higher prices, which boosted profits two-and-a-half times in the quarter to March, officials said on Wednesday.
“We will see better margins (in the April-June quarter) due to price increases,” managing director R. R. Vederah said in an earnings conference call, adding margins could go up by 2% to 22%nt in April-June quarter.
Ballarpur Industries is planning to raise product prices across the board by Rs2,000 a tonne from 1 May, Vederah said. The company raised prices by Rs1,250-3,000 a tonne for its range of products from on 1 April.
Vederah said the price rise in paper will more than compensate for the pricey raw material. An earthquake in Chile, a major supplier of wood pulp, cut supply and prices jumped by a tenth.
Ballarpur Industries is hoping to raise exports given the firm international prices and plans to take it to 15 percent of its total sales in FY11. He did not say how much percentage it exported now.
“In domestic (market), there is still a bit of over-supply in the market and not every company is in a position to export.”
The company plans to spend Rs500 crore in capex in FY11.
Earlier in the day, Ballarpur Industries reported a 150% increase in net profit to Rs44.29 crore for Jan-March quarter. Sales rose 50% to Rs1.032 crore.
Shares in Ballarpur Industries closed 1.33% higher at Rs34.35 in a flat Mumbai market.
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First Published: Wed, Apr 21 2010. 08 06 PM IST