V Kumarswamy, chief financial officer, JK Paper explained that the company has taken a price hike in coated paper of over 3% on the back of heavy dumping from China on account of safeguard and dumping duties imposed by US and Europe last year.

Kumarswamy added that the rupee depreciation has brought in some relief which has helped them take the price increase. 

Below is the edited transcript of Kumarswamy's interview with CNBC-TV18. Also watch the accompanying video.

Q: What has led to the price hike and what was the quantum that you have taken in coated paper?

A: The quantum is 1500; the price was increased by 3 and one third of a percent, prior to the hike, the price stood at Rs 45,000. In the coated paper industry, there was a lot of dumping from China which had affected prices and this had come about because of some heavy safeguard and dumping duties imposed by US and Europe around mid last year.

Fortunately, the currency depreciation from 44-45 levels to 52-53 has given us a breather which has given us confidence to take some price increase in the coated paper. The import parity price has gone up because of the currency depreciation. Also, in the last 9 months there has been a cost push. The paper industry margins have been squeezed.

Coal prices have been inching up since February-March last year and there is one more price increase which has been announced in the last 15 days by Coal India. So that is what has led us to take this price increase.

Q: How will this price hike impact your EBITDA margins?

A: We sell about 55,000 tonne of coated paper in a year, which is approximately about 12,000 to 13,000 tonne per quarter which translates to Rs 1,500 increase for this quarter. That is the kind of impact it will have on sales as well as EBIDTA margins.

Q: How much of your total revenue base comprises of coated paper and how much of a scope do you possibly have to increase it further in terms of a price hike?

A: The price hike that we have taken is just about one third of what is required.