West Coast Paper Mills clocks over 64 pc sharp drop in Q4 net profit

Mumbai, May 23 West Coast Paper Mills Limited on Friday reported that the company’s net profit dropped by 64.63 per cent year-on-year (YoY) to Rs 46.14 crore -- compared to Rs 130.42 crore in the same quarter last fiscal (Q4 FY24).

On a quarter-on-quarter (QoQ) basis, net profit fell by about 31.55 per cent from Rs 67.41 crore in the previous quarter (Q3), as per its stock exchange filing.

Revenue for the quarter decreased slightly by 3 per cent, falling to Rs 1,041 crore from Rs 1,070 crore in the year-ago period (Q4 FY24).

Similarly, the company’s total income decreased by about 3.76 per cent to Rs 1,086.12 crore during the same period, compared to Rs 1,128.61 crore a year ago.

Additionally, total expenses increased by approximately 7.85 per cent to Rs 1,030 crore in Q4 FY25, up from Rs 955.03 crore in the year-ago period.

A major contributor to this rise was the cost of materials consumed, which jumped by over 26 per cent to Rs 657.99 crore from Rs 521.9 crore in Q4 FY24.

However, employee benefits expenses saw a decline of about 8.23 per cent, reducing to Rs 93.87 crore from Rs 102.28 crore in the previous year’s quarter.

Meanwhile, finance costs more than doubled, rising sharply by 131.42 per cent to Rs 12.89 crore compared to Rs 5.57 crore in Q4 FY24.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a significant fall, plunging 52.4 per cent to Rs 80.8 crore, down from Rs 169.6 crore last fiscal.

Margins were hit hard, contracting by 810 basis points to 7.8 per cent compared to 15.9 per cent in the corresponding quarter of the previous year, according to its filing.

Despite these challenges, the company’s board recommended a dividend of Rs 5 per equity share, which has a face value of Rs 2.

This dividend rate of 250 per cent is for the financial year ending March 31 and is subject to approval by shareholders at the upcoming Annual General Meeting (AGM).

Following the earnings announcement, shares of West Coast Paper Mills Limited fell by 2 per cent to Rs 467.80 apiece.

The stock has experienced a decline of more than 15 per cent so far this year.

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