JK Paper Ltd on Wednesday reported a 97.84 percent decline in consolidated net profit to Rs 2.66 crore for the June quarter, impacted by COVID-19 related disruptions.
The company had posted a net profit of Rs 123.45 crore in the April-June period a year ago, JK Paper said in a regulatory filing.
Total income dropped 32.20 percent to Rs 496.48 crore during the quarter under review, as against Rs 732.32 crore earlier.
JK Paper Vice Chairman and Managing Director H P Singhania said, "The outbreak of COVID-19 pandemic...has caused worldwide economic disruption with a significant decline in economic activities in the country as well. The company has evaluated and applied prudence in factoring its possible likely impact."
Total expenses of the company, maker of branded copier paper, coated paper and packaging boards, stood at Rs 483.66 crore, as against Rs 544.25 crore in Q1 FY20, down 11.13 percent.
The company said it has been focusing on logistics costs which has enabled a steady reduction in many key input materials.
"The increased procurement of wood from areas closer to the mills arising from the company's plantation activities have contributed to control of raw material cost," it added.
The company expects copier and maplitho paper segments to show stronger performance once the education and service sectors recommence normal operations.