JK Paper has been buzzing in trade and has gained over 60 percent in 2021 so far. The company also posted strong earnings last month.

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AS Mehta, president, and director of JK Paper discussed with CNBC-TV18 the company’s performance and its outlook going forward.

On the impact of the COVID-19 pandemic on revenues, Mehta said that sales were impacted for 10 days in Q4FY20. He added that normalised revenue growth in Q4FY21 could have been around 15 percent.

Mehta credited JK Paper Limited’s subsidiary Sirpur Paper Mills for being the major contributor in growth. “In Q4, the Sirpur volume was close to 70 percent of its capacity, which was not there in the Q4 of the last year,” he said.

On savings from the new boiler commissioned at Sirpur, Mehta said, “going forward the full impact of this new high-efficiency boiler for the company is likely to be in the range of Rs 30-35 crore on an annualised basis.”

Mehta also commented on the pulp prices and said that the rates are not sustainable for the long term. “The pulp prices at some point of time crossed $800 per tonne, but that is not a sustainable pulp price level. Right now also the pulp prices are in the same band of $780-800 per tonne and it may continue for some more time. It is not a sustainable price because there is no way that the pulp prices can remain in that band. It can only sustain for a short period. Sustainable prices could be close to $600 plus minus $20-30,” he said.

Watch the accompanying video for more.

(Edited by : Kanishka Sarkar)