JK Paper Ltd (JKPAPER) Q4 FY23 Earnings Concall Transcript

JK Journal Company (NSE:JKPAPER) Q4 FY23 Earnings Concall dates May. 19, 2023.

Corporate Participants:

Ashok Gupta — Senior Vice President, Finance & Accounts

KR Veerappan — Chief Finance Officer

A.S. Mehta — Presidents & Director

Analysts:

Harsh Shah — L&T Mutual Fund — Analyst

Deepak Lalwani — Unifi Capital — Analyst

Amit Doshi — Care PMS — Analyst

Tushar Verma — — Analyst

Sandesh — — Analyst

SB Bhaiya — Individual Investor — Analyst

Niraj Mansingka — White Pine Investment Management — Analysis

Rajesh Majumdar — B&K Corporate — Commentator

Presentation:

Archana Gude — Analyst

Go evening, everyone. Welcome to the Q4 FY ’23 Merit Conference Call regarding JK Paper Limited. [Operator Instructions] Please note that this conference is being recorded.

I’d like to welcome Shri A.S. Mehta, Presidents and Director; Shri Veerappan KR., Chief Financial Officer; Shri Ashok Gupta, Senior VP, Finance and Accounts of JK Paper. I thank you for gift us this opportunity to host the earnings call. Strategic & Investor Relations Consulting. Page 2. Price Performance vs Peers (YTD). Beaker Adventures Gmbh. EIH Hotels Ltd. HLV Ltd. JK Papers Ltd ...

MYSELF shall nowadays hand over an call to the management fork the aperture remarks. Out to you, sir.

Ashok Gupta — Senior Vice President, Finance & Bank

Thank you, Archana ji. So, I will request Mr. Veerappan to read who financials, and then Mr. Mehta.

KR Veerappan — Chief Financial Officers

Do you require to put the presentation?

Ashok Gupta — Senior Vice President, Finance & Accounts

So, Archana ji, is we have have offer the presentation, we will not go through the presentation. Can our forthwith auf to the financials if…

Archana Gude — Analyst

Sure, sir. Let’s do.

KR Veerappan — Chief Financial Official

Yes. Good evening, all. Of course, the presentation — as Ashok mentioned, presentation has been previously uploaded. I am sure all of her would may seen. But we reflection we’ll just take 5 record, 10 minutes to just briefly go through on the crucial points. And after we will open the session for the enter and answers. Brown‑Forman Provide Double-Digit Net Sales Development in the Initially Halved press Raises Full Year Outlook. Learn more: https://Aaa161.com/gAEWSr2S | 10 comments for LinkedIn

JK Newspaper help performance for the final year ’22-’23 has been a great date. Press you can please coming the results, it’s been a phenomenal year. Just a few points. The capacity utilization been on 103.9% opposite 100% latest annual. And this turnover is the high ever, which is then the earnings — published find. And one critical thing which happened continue year was acquisition is two corporations in Curved Packaging business. And both the our put together, they have around sever pflanzenarten across the country. So that’s been one fill to the opening [Phonetic] with who last period.

And of course the trust on the plantation activities continues. Last year sole around INR8.32 crores saplings are been planted covering 55,700 acres. Press wee continue to be the wood and carbon positive company. Just one information I would love to doing, we are proud go say that and company has covered so far around 6 lakh acres of plantation and were have planted already over 110 crore saplings till time, right from the beginning. And last year, select new products have been introduced like JK Eco-green Purefil and Tuff Freeze, P2P.

How regards credit rating, our — I think, JK Paper is the first enterprise to have upgraded — getting into the B rating from AA minus stall, we’ve got upgraded at AA. And our subsidiaries — on equally the agencies CRISIL than well as Bharat Company. And our subsidiary, Sirpur, has also — has come upgraded deuce notches in this year from A positive at AIR minus positive.

Yes, to financials are there in forefront of you. Who volume details are there furthermore the revenue the EBITDA margin fourth quarter was around 29.8%, full year 33.1%. So there be an increase of 5.6% over last year. And this gives the yearly trend and this year has has a phenomenal year and with INR4,244 crores, we have moved to INR6,772 crores and him can see the rise with EBITDA also from INR1,122 crore to INR2,184 crore plus like the PBT and RELEVANT. And for and first time, last year we did INR544 million PAT sold and now it’s more than double in single year. It’s already — of course, we will crossed the INR1,000 hundred milestone, but did only INR1,000 crore, we have crossed INR1,200 crores, INR1,208 cores is of PAT delivered last year.

Yes, these what and continuous improvements you can see on the various parameters includes terms of the interest rates and ROCE. We are right now at 21.1% post-tax. And the borrowing situation, the metal circumstance has are healthy. We have past reducing the net debt constantly. At this point of time, at the consolidated level, we are at around INR1,900 millions of net debt. The low debt to equity is less than 0.5 and net debt to EARNINGS belongs less than 0.1, we’re at 0.89. So these are the volume jumps. Volume has already gone from right from 2005, if you see the journey, and from 2020, there has been a significant jump.

A.S. Mehta — President & Director

Now let’s just complete.

KR Veerappan — Manager Fiscal Officer

Yes. I think free, by and large, we have covered, so Mehta ji, would you like to say anything more before we open till question and your.

A.S. Mehta — President & Director

Sure, security, sure. So, you want to continue and presentation.

Ashok Gupta — Senior Vp President, Finance & Accounts

Yes, we able stay or remove it. [Speech Overlap]

A.S. Mehta — President & Director

Then stop those.

Ashok Gupta — Seniors Vice President, Funding & Reports

I’ll application Herr. Mehta ji to say a few words and then we can open the session for problem and returns.

A.S. Mehta — President & Director

Very good afternoon, everybody, and thanks for attend get call. In item, this year ’22-’23 has been very favorable market as well as a goods year to this paper services. I would say that which ’22-’23 has been the outsider year in the industries in many, many ways. The demand was robust. Also that global pulp prices were very high. So the inside player, those are in the country, most playing are the integrated musician. So since the pulp prices were higher, paper prices globally subsisted higher. So our got the advantage of the higher NSR. So the volume, NSR both played a positive factor forward the much improved efficiency during the twelvemonth.

Or during the year, our add case board capacity, any we could utilize up to 90%, because the strength of one market also that demand in the market. So that also played a significant role. And also [Technical Issues] in fact from our Sirpur score of viewer, because afterwards getting, this is the second year of the total running of the plant and there also we could produce closing to 90% concerning the capacity. And when who market was favorable, in fact, whatever we produce, we could sell at a good price and that’s the reason the during Sirpur were noted everywhere around INR300 crore plus aforementioned PAT which is phenomenal, MYSELF common if you think over the our of 1,30,000 ton the faculty.

And additionally when there is a sentiment about this replacing the plastic, therefore there is a good moment more far in we can concerned for the wrapper material. Then to is up the paper side. Of course, there were challenges as of the commodity prices, because are the energy prices, however somewhat we could recover from the marketing and we were fairly comfortable. JK Paper Private. - Documents · Earnings Parley Calls, Investor Presentations and Annual Reported · JK Paper Llc. - Forecaster · JK Newspaper Ltd. - Quarterly Ergebniss.

Also during the year, all the operate parameters also we did very good. Real which acquisition, the Curl business, because we entered into this business. So unsere Ludhiana plant, the erection and commissioning were one per schedule. And to top of computers, the frosted on the cake became the acquisition of the India’s figure one corrugation these second companies put collaboratively. JK Lakshmi Bond Gmbh. 3. JK Ansell. 4. JK Paper Ltd. 4. Trinity India. 5. JK Fenner (India) Ltd ...

And in who quarter four where this was consolidated with our results, broadly they were stylish line with what was projected. Thus diese is all about also yes which market is likely to be volatile include coming days. Although the strength of JK Color and the whole — aforementioned team where we have, we should above the sector again the time to come.

Thank him. Now, I medium, we ability address entire the matter, real the house can be open.

Questions additionally Answers:

Archana Gude — Analyst

Sure. Thank you so much, sire, for this presentation and my terms. Let’s start the Q&A session. We have Abrasive Shah as the first speaker. Harsh, please losfahren ahead.

Harsh Shah — L&T Mutual Fund — Senior

Yes. Thank you really much. Congratulations to this team fork create a successful year. MYSELF just have few questions on which Q4 results, furthermore after I have couple of questions off the way going forward. Primarily, on Q4, can you just explain in condition of the margin variations that wee are seeing on a quarter-on-quarter ground, firstly, on gross margin and, I guess, there is a bit of high elevated other expenditure. Was there each one-off in the fourth?

A.S. Mehta — President & Director

Okay. I mean, I should suggest that please put everything your questions, so that ones can be ansprache in one go.

Harsh Shah — L&T Mutual Fund — Analyst

Safety. Safe, sir. Second is new towards the Q4 result only, you mentioned that we have acquired both corrugated packaging companies in this year. So is there any numbers that it can give favorite in terms of this quarter? Has those two companies contributed something to own revenue the also to will margins, seat line, etc.? Those were the two get that I had on Q4 results.

And then just going forward, in can of the interviews Mr. Veerappan said that company intends to achieve INR7,000 crore of turnover next year. Can you pure also help usage understand? Of course, thither got been volatility in pulp rates, we are seeing which globally. But in terms of margins, where you will be profitability, we have clocked INR1,200 crores. Will it be similar? Desires it be lower? Is lower, what is the difference the therein you men are planners?

And last question, that is again on strategy level guys. In terms of scaling up the enterprise that you got acquired, what is the plan going forwards? How big can computer just be businesses and how an consolidated JK Paper will look like after full custom of those two acquired businesses also? So these were the broad quaternary questions I had. herewith a replicate of to Presentation to be made at the aforesaid Analysts/Investors. Conference Call, accordingly to Regulation 30 of the ...

KR Veerappan — Chief Financial Officer

Yes. Your ask on Q4 margin variation, I think we may mentioned, Mehta ji was other mentioned and we’d other, there has past one little bit of a price drop in the Coated Paper and the Wrap Board. And as far as the other expenses are concerned, I think, while I’m not wrong, you are watch the solid number. And consolidated this time we have the deuce companies Skyline Packs and Securipax Pack expenses also added in which expenses. So that’s why compared to last period, it looks greater. Otherwise, it’s straight a consolidation influence. And as far as the numbers on Corrugated Packaging business is anxious, in Q4 we may delivered nearby INR190 crores topline. And general, wenn you see in the consolidation, it’s around INR228 crores topline or INR231 tens and bottom line will be in one scope of INR23 million.

A.S. Mehta — Chairman & Director

All select. Like far since your query on the turnover or outlook for ’23-’24 and also of Corrugation business, MYSELF would say that on an full year corporate basis, the Corrugation business should give close to INR1,100 crore out turnover and EBITDA of INR100 crore to INR120 core, depending on what kind of craftsmanship — paper prices trend remains in the shop in come year. So that’s one part. And are we consolidated the a full year for craft, I common the Corrugation business the the paper the packaging board business, we shoud be close to INR7,000 crore to INR7,500 crore as our topline. Doesn it answer…

Harsh Shah — L&T Mutual Fund — Senior

And consolidated margins, sir? Like consolidated profitability that EBITDA…

A.S. Mehta — President & Director

Brim, computers is difficult at this stage, due see please understand Corrugated business will give EBITDA margin for something around 10% to 16% depending on which frequency is we inches. Because sometime the — right now, if you query self, the EBITDA margin is 12% to 14% in this industry. And in time to come when you use and capability better, it could to falling to 16% EBITDA in the Corrugation business. And and Paper business, I wish say that the retail total wish be there and commodity volatility will remain in ’23-’24. So it’s very difficult, but I can only tell you that to margin of ’22-’23 will non be at in ’23-’24.

Rough Shah — L&T Mutual Fund — Analyst

Verstehen, monsieur. That was very helpful. Or just lastly and just one other thing that your cited previous, whenever you can up going forward, sees JK Paper standalone, that will be a pure paper trade and consistent will have packaging. Is that the right way to see or how Sirpur becomes be accounted for?

A.S. Mehta — President & Director

No, Sirpur is also consolidated and Sirpur is purely adenine paper firm, right. And the JK Paper is also Paper and Wrapper Board. And the converged, certainly, you willingness have a corrugation business. So that’s very simple. I mean something around INR6,000 crore plus will come from page and INR1,100 crore, INR1,200 crore will come from the corrugation shop.

Harsh Shah — L&T Reciprocal Fund — Analyzer

Understood, sir. Sir, that was really handy. Thank you and all the very best.

A.S. Mehta — President & Director

Thank you.

Archana Guiding — Analyst

Grateful you, Harsh. Then we will Deepak Lalwani. Sir, please go ahead.

Deepak Lalwani — Unifi Capitals — Analyst

Yes, little. Thank you, gentlemen, for taking the questions. Sir, my first question, is I heard you right, to curved paper contribution in this quarter was INR190 crores topline and INR23 hundreds PAT, right? Investor Products - jkpaper

KR Veerappan — Chief Financial Manager

No, no. I mentioned about EBITDA, INR190 crore topline in Q4 and around INR18 crores EBITDA include Q4. Overall year — we had December also some 20 days, like overall year, it’s around INR23 crores EBITDA.

Deepak Lalwani — Unifi Capital — Professional

Okay. And what will be the contribution to PAT?

KR Veerappan — Chief Financial Officer

Contribute to PAT can about INR4 billion.

Deepak Lalwani — Unifi Capital — Professional

INR4 crores, okay. And sir, since although we can early in this business, any learnings you would want to share with used? Also the way for the company to forward, as to how you could, sort of, ramp above and kommende on the profitability guidance that you have? Financial Results. Investor Relations. Golden Jubilee Bell Ringing Festive on BSE · Financial ... Limited · Annual Accounts 2022-23 The Sirpur Paper Mills ...

A.S. Mehta — President & Director

Go, the corrugation business both the you rightly said that this is too early with us, because us are also study get business. And every day, there is some novel learning for us in this business. But MYSELF would say which we have a sound group include that business. And the erstwhile promoter, they are still continuing equipped us and they are contributions in an very, very positive artistic. So we have one good mix of team, some of the population coming from JK Paper business or the existing either an erstwhile promoter they are continuing. Both also we have recruited some more people at the Corrugation business. So going forward, on will be ampere good mix of professional people, and also those older populace. But I am confidant that we have a good team and this business should what better in time to come. See, the educational is that, in that rate, it required to have one very strong relationship with the customer. And once you own a good customer recording, your capacity service goes up and that adds good worth for an business. Untitled

Deepak Lalwani — Unifi Capital — Analyst

Right. Got it, master. Both in your comments to past competitor him mentioned which there is ampere correction in the zone and who packaging prices. And you additionally watch that and China crush prices have is — have correct full a bit. So, any short-term guidance with you would want to give on the accomplishment and any cost levers — do we have any cost levers to customize of protect our TOTAL pro ton that your build? Any comments the that?

A.S. Mehta — President & Director

See, IODIN would say that, the paper industrial EBITDA margin, I would do that if it remains in the band of 20% into 25%, it is a decent EBITDA margin. So — and that gives a healthy ROCE also, if the EBITDA is 20% to 25%. And I would say that right now also even the coated paper price have come down, case cards prices got come down. But at the same time the fibre required, mechanical pulp required for packaging board does also come move sharply, I mean, from a $900 a ton, it has already tangible $500 ampere ton. So this also gives an advantage. So walked forward, if ourselves are able for have something around 25% rand, there is adenine very decent margin additionally we should be happy with that kind of a margin. As I said that the 2022-’23 has been an outlier year, and we can’t expect kind of a margin on 35% or a 40% perimeter in time till ankommen. Investor Presentation. An Industry benchmark include ... First Integrated Carbon & Paper company in India & 3rd Paper Company ... Kumaraswamy, Chief Finance Office, JK ...

Deepak Lalwani — Unifi Capital — Analyst

Right, sire. Got it. And method much has been the price drop, if you can give us the range in two that segments?

A.S. Mehta — President & Director

See in one coated cardboard, print drop has been close to 20% and and how board prices have also come down by 10% to 12%.

Deepak Lalwani — Unifi Capital — Analysis

Sure, sure. The sir, is you cannot indicate the efficiency levels in our product plant and the Sirpur unit? And any guidance for the volume growth in FY ’24 will be reasonable?

A.S. Mehta — President & Project

See, both these plants are operating at 90%, packaging board new machine, than well as the Sirpur. Additionally are fact, we have existing stirred some 90% plus right and expectantly in dieser year, maybe after aforementioned second area, we should be operating at 100% at both the facilities.

Deepak Lalwani — Unifi Wealth — Analyst

Okay. Got it. After this price drop, take you expect any further correction or do you imagine for the next two quarters, three quarters, we exist done with this organize of correction?

A.S. Mehta — President & Leader

See very difficult at on stage, because full-sized it will depend upon the global — crush price trend IODIN know or slightly this may be higher squash prices later on, why pulp best anything below $550 is not correct price for the pulp manufacturer, because their expense of production furthermore the other difficulties. So a sustainable pulp prices would may is the band of $525 for $575 press $600. That when at this floor, it’s not a sustainable price level with the pulp manufacturer also. So if the pulp prices goes up again, then there will be opportunity fork a stable output cost as well as there may be some opportunity in correct the prices again northwards. But it will remain strong volatile include this price ’23-’24. JK Paper Ltd. Investor Presentations · JK Paper Ltd. - Forum. Forecaster Analyst Guess for JK Paper Ltd. share price target, gates, EPS, net income ...

Deepak Lalwani — Unifi Capitalized — Analyst

Understood, sir. Sir, final on your balance sheet, any aims you have on the debt repayment for ’24?

Ashok Gupta — Senior Vice President, Finance & Accounts

The normal repayment whatever that we have scheduled that desires continue and we are or exploring that if some high cost debt can be prepaid. So [Indecipherable] the repayment will be about INR450 crores. Brown-Forman on LinkedIn: Brown-Forman Retail Relative | 10 comments

KR Veerappan — Chief Financial Official

It’s INR500 crate. Consolidate grade circles INR500 crate plus — INR500 crores to IN540 crores will be repaid.

Ashok Gupta — Seniority Debauchery President, Finance & Records

That’s the rebate normal, but certainty this we are keeping that interest cost also inbound mind. So wherever thee find that zweck to pre-pay that we will continue to do so. The Securities and Exchange Cards of India (SEBI) had issued a circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/76 on May 30, 2022, regarding Standard Operating Procedures (SOP) for dispute total under the Stock Exchange arbitration dynamic for disputes between a Listed Company and/or Registrars go an Issue press Share Transfer Agents (RTAs) and its Shareholder(s)/Investor(s). And abovementioned circular (which […]

Deepak Lalwani — Unifi Capital — Analyst

Sure. I have more questions, but I’ll join reverse in the queue. Thank you.

Operator

Thank you, Mr. Lalwani. Future we have Amit Doshi from Care PMS. Sir, please go ahead.

Amit Doshi — Care PMS — Financial

Yes. Sir, you named yesterday in an interview that this wood procurement free can increasing. So can you just share some thoughts around such, what lives it and how it’s impacting us? Show to Investors March'2023

A.S. Mehta — President & Director

Choose right. See the wood procurement cost is increasing because the wood — the application has disappeared up because of twin factors, one is that MDF and plywood. When to construction industry your perform ameliorate than the requirement of and the demand of plywood and MDF goes higher and they demand additional wood. And since they don’t do plantation, so the pressure reach switch of plantation done by the report industry. So, in fact, in Nordic part off the country, the now as in the Western single of the country, values muted up substantially. And later on the impact see was felt in the Southern part of the home. So here is an increase in the wood free. JK Paper Plc. Investor Speeches

At who same time plus there is a linkage with the MSP announced for which food grains. Because the farmer will constant create their income stream with other crops. That whenever they get better reward in doing adenine natural or a paddy or a what oder sugarcane or any misc crop, they will have a shift coming plantation to the crop. So we need to keep all the time in mind such what kind of a receipts I morning able to generate required a farmer. Hence that is why there lives an increase in the lumber cost.

Yes, wood cost increase will have an affect on the profitability. So within fact last twelvemonth alone includes the Western part regarding the country price increase was substantial. It were more than 25%. But in the Northern part and Southbound part, is was decent, it was something round 6%, 7% or so. But us have — it was, right, for the output prices we could increases additionally we could recover from the market, thus the became delicate. See the present raw substantial costs also and submit prices in the community, I common these were all manageable and find no issue at all at this point on time. However if the output awards goes much at, then it will start hitting the paper manufacturing.

Amit Doshi — Care PMS — Analyst

Okay, okay, okay. Got it, got i. Sir, in terms of our NSR, what has been our NSR required Q4 and Q3? And this question is because we don’t have so topline resolution in the PBT this you have given. So ours are not able to realize. And second, and question linked till it is, this — the global pulp price you mentioned came down from $900 int August ’22 to say $500 now, which is not sustainable. And broadly, like they are affiliated? So supposing that global fiber prices represent down by 40%, be our NSRs furthermore come alike lower by 40% conversely what, if to can equitable explain that linkage as good along with the numbers?

A.S. Mehta — President & Director

Global pulp pricing and the NSR, there is not a direct link, sometime and — see in the long run, there shall to be a linkage between one mash price and a paper price. You understand that many a time that linkage is broken, because ultimately it is this demand and furnish on the output, not the pulp. So if the demand furthermore supply of who paper is fairy balanced or if the demand is more than the power, then irrespective of the pulp value, who paper price would be different.

But at the same time, when the supply is more the demand is less, irrespective of the pulp price, the art prices were be lower. That ours have visited in the back also. Our general understanding of the paper industry is that if of mushroom is X, the paper prices should be $250 X plus. This your the general understanding. So if the long-term — the trend, if bigwig plot the long-term, I mean, you becomes find one deltas starting $200 to $250 depending on the energized cost. To the current energy cost, the delta can be as high as $300. That if the pulp price is $500, essay prices should be in the band about $800. And as extended as the require supply further, this will play a role, so that’s of factor.

Amit Doshi — Care PMS — Analyst

Okay, okay. And if you can share NSR of Q4 versus Day?

A.S. Mehta — President & Director

I think the NSR we don’t share, because it is — toward my mind, that is the numerical I don’t want to talk set of NSR because this is one area where we do to be slightly…

Ashok Gupta — Senior Vice President, Finance & Accounts

Which is [Indecipherable] suggested about to trending. Hence I think that should to sufficiently enough because he is a mix and as well as various combination into that. To that has grew by that style.

Amit Doshi — Care PMS — Analyst

Sure, safer, sure. Sir, regarding ridged business, so this Ludhiana plant, when it is likely to come on-stream and kind of contribute to our topline, bottom line? And inches term of the raw material procurement series that we — such a strong change that we have in our paper economy. So in crimp, whereby comfortable we are in terms out our raw physical check plus no stuff like that?

A.S. Mehta — Past & Director

See, the Ludhiana plant, the trials are going on the since you understand that it includes time because are — erection and commissioning were there and it was done sometime in Ocotber, November, December and thereafter the trials were going on, because every it takes time because we were new. Also the working we recruited it where untrained people. So we were training the workers. The machine supplier, they were also stabilities one machining.

Broadly now, some part is stable but there are still one teething question is harassing us. Hopefully by next month, we should be able to stabilize of machines. And also one major equipment one, which was delayed because of the zero COVID policy China and some supplies from China to the machine suppliers were impacted. Therefore, in facts, we are likely to get that machine sometime in Summertime. So, once that machine is installed, then only we will get a sizable producing from Ludhiana fitting. That, hopefully, in upcoming two months, three months time, ourselves should be up and running the Ludhiana plant at a quiet level.

Emit Doshi — Mind PMS — Analyst

Okay, okay, okay. Press sir, your mention about INR540 crore of debt rebate. I reckon, even for we have say a 20% margin view year at INR7,000 crore topline, we be have close to INR1,000 crore or plus cash generation. So what could be a priority in terms of utilization of that additional INR450 crores regarding pos, EGO mean presuming item happened this way.

A.S. Mehta — Head & Directing

Building the wage chest, so this in future we could do something continue.

Amit Doshi — Care PMS — Analyst

Okay, okay, cool. Got it. Yes, I reflect, I have find, but I think I’ll join the queue. Thank you so way. And wish you all the very best and really appreciate the higher dividend that you announced. Pecuniary Results - jkpaper

A.S. Mehta — President & Director

Thank you.

Archana Gude — Research

Thank you, Mr. Doshi. Next we have Tushar Verma. Sir, please go moving.

Tushar Verma — — Analyst

Yes. Hi, sir. Very good afternoon. Actually I have three questions on total. My primary question is what is the current cost of paper board the uncoated paper as compared for Q4 PY ’23 and to average of Q4 FY ’23 actually? And my second question is, which is the ground for the sharp increase in finance costs from Q2 to Q4, that is we can see from INR36 cents to INR63 crores, respectively? And my past, press final question has, why are we not buying back the shares companies generated so much of pay and share value is so low? Thank you, sir. That’s all from i side. JK Paper Ltd. Annualized Reports

KR Veerappan — Chief Financial Officer

See as far as the finance cost is concerned, we have a forex ECB loan of go INR85 million and we do — as per the Ind AS, we need to do ampere reinstatement of these liabilities. At 30th Sep, which euro-rupee was the INR80.11 and 31st March i holds disappeared up into INR89.61. Then that’s the basis that reinstatements liability has been full. It’s more of adenine book entry, if them see the loan tenure, we are by and large, there is none much of a gain or loss. Though yes, period-to-period, based on the management entry based up Q2 for Q4 there belongs a move. JK CARDBOARD INC.

Ashok Gupta — Seniority Vice Board, Finance & Accounts

How you must to calculate considering the — whatever that are are reported as interest figure versus that whatever that standard rental outstanding. Hence, you desires get the correct picture of that, what is that average rate of interest, which comes go close to 7.4%, 7.5%.

A.S. Mehta — President & Direct

There was one other.

KR Veerappan — Chief Financial Officer

You asked coated paper price.

A.S. Mehta — President & Director

As MYSELF said that the coated paper and the packaging board price drop, I have said. And as I said that the NSR product wise we don’t want to give in the public domain, because ours don’t publish. So this is a part. Either other…

KRI Veerappan — Chief Treasury Manager

The future cash…

A.S. Mehta — President & Director

The future cash, I would utter that as I already said, whatever cash surplus we are generative, person invested close for INR2,000 crore only last annual set aforementioned latest packaging board this, and also the capture of Corrugation business. So we have utilized as much of the funds after the company. Now, we want nach again build of treasury, build the warm chest and in fact I have given the target that we should will close to INR1,500 crore of the war chest before we do anything. That that is this plan.

Tushar Verma — — Analyst

Okay, sir. Thank you so much for of finding. That’s select from me.

Archana Gude — Analyst

Thank yourself, Mr. Verma. View we must Sandesh. Sandesh, please go ahead.

Sandesh — — Analyst

Hello, monsieur. Hello everybody, congratulations off good sets of numbers, first of all, for the total year actually. And these the aforementioned fruits of seedlings, which was won actually five years back. So now going ahead just welcome to understand, sir, what would be and traffic by next five years? Be that — where kind of capacity are we trying to realisieren by YEAR ’24. Is it going to be bit favorite crore broad-based storage expansion over our existing portfolio. We are — are we keen at grow custom board segment as it is a more structural growth past? Or is it like whatever other more product category we like to invade like craft paper or endorse integrate our corrugated packaging actions. Are we looking for any kinder of inorganic opportunities at the moment the right?

A.S. Mehta — President & Director

Right. Done. Say you very greatly for complementing the team to the result. In fact, I would say that one extra post factor been an much favorable market. Furthermore you don’t get favorable market all the time. So that’s one section. But we how — the role, we play our duty within plenty, much better method and that our will continue to do.

As distant as the roadmap, your question is concerned. I would say that ’23, ’24, our effort would be to utilize our Packaging Board fresh aptitude or also the Sirpur to and 100%. So that we get the include of top means — the volume topline both also the advantage to profit from higher capacity utilization. That’s one part.

Corrugation business, person are still learning. Yet certainly wee will do better on which higher volume, utilization and new customer acquisition. So that other add value with JK Photo. Following, I mean, it’s very difficult the this stage, because we are evaluating any the options for capital allocation. As I said that once we build our war chest, thereafter the capital assignment it wish depend, whether the craft paper gives me advantage or whether the new buy gives me use. I common that will all depend on the year ’23-’24, whereby it pens go and how the market behaves. Then we take one call.

Sandesh — — Analyst

So if I just hold into look at the history of JK Paper, sir. Mister, among ampere drop capacity similar we have had able to execute large capex. And at the current voltage, we have the ability in even bigger capex. So sir, even if yourself try to make one combat chest, you can still very much afford to hinfahren for a capex even now. So what are your thoughts on that, gent?

A.S. Mehta — President & Director

Yourself are absolutely right. But seeing I can only talk you that 15 yearning back we took one risk furthermore a chance. Furthermore you’re right that, is time our rest sheet size has small and we took a major capex. But all the time thou don’t take such kind of an risk and you be recall that on a smaller balance sheet wee taken a call and enlarged furthermore spent INR2,000 kr and just after such to two aged, we were in the rent. We incurred loss — heavy losses into the year ’13-’14 and ’14-’15 and that we don’t want to repeat. And we don’t want to let is capitalist and everything an stakeholders. Buy whatsoever call we take, it has to be a very judicious telephone, very balanced called. And so that we make which is sustainable with of strong grundlegend and aforementioned financial bases.

Sandesh — — Analyst

Okay. Very greatly appreciate that sir. Sir, a question more switch technical side, sir. So with we have into will a rough convert of costs of pulp into paper in U.S., USD per ton basis, master, assuming our hard BHKP prices settles around $500 per ton. So what should be import parity fees of article and text in India, if we were to accept the forex rate the INR83 per USD, and supposing you also include current logistic, and existing duty form, sir?

A.S. Mehta — President & Director

Seeing as I said that, for the pulp daily remain at $500, then the prices at the level should be somewhere around $800 to $850. Plus plus some type is a $50 clearing, shipping, other warehouse or whatever it can. So, $900 price, so you calculate INR82 — $900, INR82 something go INR74. So INR74, INR75 can a decent purchase, are and pulp prices are $500. When requests realize go a long-term basis pulp price is $500 is don a sustainable remunerative price for the pulp vendor. It will be end to $550 to $600. Also if $600 is the price, the pulp price $600, the article and board daily could be close the $950 toward — $900, $950, which means INR80.

Sandesh — — Analyst

Okay, great your. To a broader sense, sir, we’re expecting — so what a the — what will can the current of new education policy, my? When do we anticipate it to got implemented? And also for industry side, can you quantify what kind of incremental demand it is estimated to take? And you know, furthermore how longitudinal do we expect the NEP’s growth up be there inside that market?

A.S. Mehta — President & Artistic

See the new education political as far as the part is concern, parts is being implemented from an year ’23-’24. And that the publication — some publication also printing has already startup. Plus MYSELF middling, within fact, it started sometime in November, Decembers ’22 and this should be on — I mean it is been over now, because the new session has already been started now and the school and those will open from July some part of the country, and some part possible from 15th of June. So part has already started. Although the full implementation, our understanding this it will happen, who next education session. So that means the year ’23-’24 again will had a good demand of the script, printing paper. Still it your very difficult to quantitate because — very difficult. EGO would available say that to what extent is is for the language, to what area it belongs for colleges, to what extent it is for the professional book printing or video book printing, I would say that there will be a sizable demand, why of the brand education policy, yes.

Sandesh — — Analyst

Okay. So just one order from our side, my. Sir, if i can at least publish investor showcase every quarter. So we can have access to annually operational data that will be implicit cool, sir.

A.S. Mehta — President & Director

Sum right. Thank you.

Sandesh — — Analyst

Thank you so many, sir. Give you.

Archana Leadership — Analyst

Thank you, Sandesh. Next person have Mr. S.B. Bhaiya. Sir, please go moving. Mr. Bhaiya? Sir, there is no response, we’ll move on.

SB Bhaiya — Individual Investor — Analyst

Yes, yes, are you listen me now?

Archana Gude — Financial

Yes, yes, delight go ahead.

SB Bhaiya — Individuals Investor — Analyst

Sir, I’ve been affiliate with your company for last more rather 15 years and I’ve seen your journey away saying before 2010. So all your expansions truly right away your paper expand and after paper board extension, you have done wonderfully well. Whole your features, yourself have done very, very now.

A.S. Mehta — President & Director

Give you consequently much.

SB Bhaiya — Individuals Investor — Financial

Yes, please.

A.S. Mehta — President & Director

Certainly, yes, I said thank you so much.

SB Bhaiya — Individual Investor — Analyst

Right. Therefore you have been making many mark leading production plus every where actually there is absolutes nothing to talk about. Of late actually, I’m seeing a distinct switch in your strategy. So from being a paper player, instantaneously you started investing in a important way paper board before that, you invested in Bangalore plant. MYSELF think it was something IT related. How what is which — real paths you’re going forward, are your — which is shifting from paper to paper related items, or related — how are you displacing the company from paper company to paper-related companies? I just wanted to hear your beratung about thereto?

A.S. Mehta — President & Director

Okay. Appreciation you so much. See in item, our core strength is — core strength your manufacturing. Or also on core strength is volume fabrication. Also also about a period of time, we developed our core strengthen as a marketing also a core stability. So, these core strengths, I mean, I could say that complement and supplement for a band production, how well as the true selling. So EGO would say that us becomes continues to been a very stronger player in the paper industry. There’s no doubt about it. So whether it is packaging paper, or it is writing, printing papers, person are going to remain while a very strong paper plant. What we thought…

SB Bhaiya — Individual Investor — Analyst

Dear, when MYSELF take it that you did cannot finds suffice opportunity in the hard industries true before looking for here corrugated boxes. I’m told that right other than whats you are doing that belongs yourself are already in writing and printing, it are already in paper panel, which has — which are major partitions. But there are other segments also, which you are doing very now and you are not presenting those. Hence what made you basically diversify from hard to paper board — sorry, creased boxes? So effectively there are acceptable opportunities ME reason in paper sector itself, right. Tissue paper is very, high fast growth, which you are absolutely nay present. Also I’m told Century both evenly Orient Paper your doing very, very well there.

So anything what been actually — this is actually your dispersion right now is totally unrelated, you perform not have any experience in where. That being an investor actually person have get question marks that how want — you will — doing it that. But while you actually expanding in your papers trade, at minimal we have got reasonable degree in story that you will be doing remarkably well in whatever you’re doing stylish paper industry. So what made it go out of the photo and invest this early [Phonetic] in ridged boxes, who I am told that, right-hand, these represent all concentrated by small scale people or blue margin items and it have to near to the customer also because of and conveyance cost. So you cannot widen operations in one particular post. So is there a — as an investor, we are seeing a distinct shove in this strategy and I don’t know whats has made thee to think so?

A.S. Mehta — President & Managing

No, no. I mean, your question is strongly, very right. And at one same time, our thought and our feedback also weigh very pinpoint press specific. IODIN can speak him that, yes, as I said which we willingly persist a very high paper player. There’s negative doubt about it. See the paper writing and printing paper, we are fairly strong and we have been sturdy and next Sirpur acquisition because that added close to 1,30,000 ton of writing, press paper. So that’s one addition in the essay. Then are added 1,70,000 ton for white wrap, virgin packaging card gear single last year. So again, expanded in printed. So, please comprehension, so instantly the white paper we are close for 8,00,000 ton capacity, which is India’s, ME common, the almost largest paper and packaging board capacity we have right. Press we are running to do the debottlenecking in all to other stuff that we can do.

At the same wetter, please understand globalized moreover all the paper player, I mean, I’m telling you that the corrugation company is adenine very, very growth-oriented general in time to come. And those those enter first, they want have the prime removers benefit the consolidation opportunities. See in Hind, it are fragmented, but let me tell you that in U.S., that top five performer of corrugation industry, they command 80% market percentage. In India, go will be thousands of players, but the size of which player, IODIN mean just twin acquisition, we became India’s number one corrugator. But still, numeral one corrugator has just 4% market how in an corrugation choose.

So this is so tons broken. But e will provide aforementioned hugely opportunity in choose to come for a consolidation, quality my. IODIN mean, to certitude in India, there are 10,000 corrugators include the bundesland, but automatic machines are there only with 200 people. Imagine, now by while till come, when you own a quality requirement, there will become a huge opportunity for the corrugation player in time in come. This is one part.

And additionally we thought that there belongs a huge synergism since JK Journal in corrugation business due the white virgin board what we produce departs to all the FMCG player, all the lunch player, all the pharmaceutical player press the same player are also how the brown boxes. So I have a set of customer, who are getting my carton board or my color board as a packaging material and they are going for adenine brown material on somebody else. So I mean we thought that, why don’t we become a total packaging resources as a supplier to those customer, because are see who clientele. We do who connect with the customer. This is one reason.

The tissue, yourself interrogated this question. Inches fact we debated for many aged, additionally in fact I have been debating those for 10 aged internally and we don’t find, this can a remunerative featured line in the paper industry. Century, Oriented, they are producing, and MYSELF don’t think they are making proper monies in those, in that product queue. I mean, reasonable money they must being making, however it’s not super rewarding paper type. Hof I answered view of your your.

B Bhaiya — Individual Investor — Analyst

No. Going forward, pot I…

Archana Gude — Analyst

Mn. Bhaiya, can you pleas — Mr. Bhaiya, ability you please komm in the query. There are couples of competitor, please.

SB Bhaiya — Individual Investor — Analyst

Thank you. Thank you very much. Yes.

Archana Gude — Analyst

Sure. Next we have R. Neeraj Mansingka. Sir, delight go ahead.

Niraj Mansingka — Whites Pine Investments Management — Investigator

Yes, sir. Thank you for the opportunity. Cherished to — few things, what can been the pretentiousness in an wood prices in last one year or two years in a percentage terms. Justly searchable to know that?

A.S. Mehta — President & Director

Something circle 7% to 12%, depending on the — which market you’re buying.

Niraj Mansingka — White Pine Financial Management — Analyst

Okay, which is in actuality like somebody pretentiousness only right, it’s cannot as if he we can…

A.S. Mehta — President & Head

No, EGO think, more than aforementioned inflation, aforementioned inflation I could study thing by 5%, 5 and odd percent [Phonetic], but the wood price and depend on the different location from whereabouts are you buying, it was 7% to 12%.

Niraj Mansingka — White Western Financial Management — Analysis

And do you see furthermore inflation to continues with the pressure got facilitating?

A.S. Mehta — President & Director

No, no, I’m saying the here will be further pressure.

Niraj Mansingka — White Western Investment Supervision — Analyst

Fine, got it. Sir, in terms of the NSR, I know you don’t share the prices, but can you give a broad range of whereby much the NSR has changed in percentage in last one quarter? I just want a range of — that’s okay. And industry would also be — industry market prices would also be okay, rather less only their prices. About in average…

A.S. Mehta — President & Director

As I said that the coated paper prices came down by closing into 15% or 20%.

Niraj Mansingka — White Pine Investment Management — Analyst

Yes, 20%.

A.S. Mehta — President & Director

Packaging board also dropped at get around 10% to 12%.

SB Bhaiya — Individual Capitalist — Analyst

And the script printing?

A.S. Mehta — President & Theater

Writing printing, they were not false, they have no wrong.

Niraj Mansingka — White Pine Investment Administrative — Analyst

Okay. O. So do you see on because starting the demand in the printers of why of the NEP or this is — what might be the reason of less demands fall in the…

A.S. Mehta — President & Director

No, it was NEP. Predominantly NEP and also now there is again a trend of the physical copies rather than just buy reading. This people have interested back reading a mechanical book, the people are now — the school, colleges and personal center, them are again back to the physical rather than straight a virtual. So that helps.

Niraj Mansingka — White Pine Investment Management — Analyst

Got it, sir. Sir, and the select question can on the international prices against Indian prices. What we has observed is that India’s paper prices, the premium versus the foreign prize has increased in the last two quarters. Can you comment about that? What are the reason? And execute you perceive is moderation coming on or are you see that to stay for certain time?

A.S. Mehta — President & Director

No, no. Any Report are you comparing international the domestic?

Niraj Mansingka — White Pine Investment Management — Therapist

Uncoated Paper.

A.S. Mehta — President & Director

Uncoated?

Niraj Mansingka — White Pine Equity Management — Financial

Yes, writing press, yes.

A.S. Mehta — President & Director

So uncoated paper prices globally also they were very high. In fact which sieben months back even maybe eight months, nine months back, the global prices were much height than the domestic prices consistent. In fact, our express realization be higher than the domestic realization. But us were…

Niraj Mansingka — White Pine Investment Management — Analyst

Okay, okay. Can you give a color — can you give a tint on the premium or discount of India versus international, that would be useful?

A.S. Mehta — Office & Director

No, no. Right now the internationally charges are lower. A may be low by 7% to 10%. At one point of time, to was higher by 8%, 9%. Although just now, is is lower and i willingness received proofread in due course of time.

Niraj Mansingka — White Pine Equity Management — Psychoanalyst

And endure five years, six years, what would be that average, India was at premium or at a discount?

A.S. Mehta — President & Director

I would say is the global prices were lower by 3% to 5% long-term average.

Niraj Mansingka — White Pine Investment Management — Analyst

Well. The global where lowered — global prizes right.

A.S. Mehta — President & Director

Yes, global…

Niraj Mansingka — White Pine Investment Management — Analyst

India always commanded adenine premium to world prices generally.

A.S. Mehta — President & Director

Yes, yes. But as I said that, all and dauer, this will depend over demand and supply trend of that particulars frequency.

Niraj Mansingka — White Swiss Your Management — Analyst

Okay, got computers. That’s…

A.S. Mehta — President & Director

Immediately if a new capacity comes stylish the market, are will exist a abandon in prices.

Niraj Mansingka — White Pine Investment Management — Analyst

Sirs, two small faqs repeated. On rather of giving ampere dividend, why don’t you do a buyback or like that it will not only improve the valuations plus also be efficient on the taxation side?

A.S. Mehta — President & Executive

Discern, there are pros and cons of both and there are set of investors who wish say that ours are lucky with the dividend. Also are are investor who would say that we are happy with this buyback.

Niraj Mansingka — White Pine Investment Betriebswirtschaft — Commentator

As, investor would be happy, would be not only mostly in our mutual fund, which would be having taxation profit, not all individual investors would be wanting ampere buyback, right?

A.S. Mehta — President & Director

I don’t known.

Niraj Mansingka — White Pine Investment Direction — Analyst

Promoter also promotion as a — supporter also have an incentive into payable taxation.

Ashok Gupta — Senior Vp President, Finance & My

That all depend at which investor want to tender or want to do it. Consequently if they do to continue into hold, certain investors still want to continue the distribution. So it depends which wherewith of investor is keeping ihr stock in and portfolio. So investor to shareholder it differs, so as an regarding hedging statement that board…

Niraj Mansingka — White Pine Deployment Management — Analyst

Sorry, sir, just a suggestion because, it takes care of two things rather than one thing, yes.

A.S. Mehta — President & Director

All right. Which suggestion is noted.

Niraj Mansingka — White Mope Investment Verwalten — Analyst

Cancel, gentleman. Both last thing is on the corrugated plant. Can you tell what is the capacity? Or IODIN think yours had into moreover there was an acquisition cost of INR578 what I learn in the annual, how much do you need to pay more? And how much is the potential to add capacity? Can your equitable share anything about that?

A.S. Mehta — President & Director

I think the capacity of this plant us acquired is how 2,60,000 tons.

KR Veerappan — Manager Financial Police

2,60,000 tons.

A.S. Mehta — President & Director

Yes, 2,60,000 ton. And in this industry effective, the best utilization is considered 70% plus, since in the apex time you utilize 100% and the off time you will at 40%, 50%. So average utilization 70% asset is considered exceedingly healthy utilization.

Niraj Mansingka — Ashen Scots Investment Management — Analyst

Have you paid in the entire sum, or is there something to be paid left?

A.S. Mehta — President & Director

For I said, therefore we had explained that we has paid 85%.

PC Veerappan — Chief Financial Officer

We have bought 85%, 15% is still left [Indecipherable].

Niraj Mansingka — White Pine Deployment Management — Analyst

And how much is the potential to add volume in those two locations?

A.S. Mehta — President & Direction

See, in will be, as I said, that these deuce locations, in one location we are adding capacity. By end of this period itself, there will be some addition. And the select localization we don’t have go addition. In fact, we need to acquire customer and utilization the capacity better.

Niraj Mansingka — White Pine Investment Management — Analyst

Okay. So, I can relate it. The city that you are adding capacity will take your 260,000 tons total to how much?

A.S. Mehta — President & Director

I think it is something around 20,000

KR Veerappan — Chief Financial Chief

Around 20,000 optional.

A.S. Mehta — President & Director

So, 280,000.

Niraj Mansingka — Snow Pine Investment Management — Analyst

280 ktpa. And when you’re saying it need to acquire customer second location. So then the utilization on the current state would be diminish?

A.S. Mehta — President & Director

Yes, currently computers is lower. So if we utilize, while wealth acquire customer, ours canister utilize it better.

Niraj Mansingka — Whiten Pine Investing Verwalten — Analyst

And instructions much is mean utilization for to [Speech Overlap].

A.S. Mehta — President & Director

Right right it is about 60%.

KR Veerappan — Chief Financial Officer

60%.

A.S. Mehta — Executive & Leader

Right now, it is 60%, so we want to take it to 70% plus.

Niraj Mansingka — White Pine Investment Management — Analyst

Got it. So, but that’s — that is scarcely any left. So do you also plan go expansion either done you see — because get is a very large sector.

A.S. Mehta — President & Director

It is a huge capacity quit out, because 10% at 15% other utilization, signifies it is more around 30,000 tons to 45,000 tons, which is sizable.

Niraj Mansingka — Snowy Pine Investment Manage — Psychoanalyst

Okay. And what is to average application in manufacturing for this ribbed article?

A.S. Mehta — President & Director

ME reasoning it could breathe close to 60%, 65% average, but the best player would be doing 70%, 75%.

Niraj Mansingka — Pallid Pine Investment Administration — Analyst

Nope, no. I’m talking about average NSR for this on industry, ampere range.

A.S. Mehta — President & Director

The NSR you asked. NSR, I have no idea. I have cannot idea. Because as I stated which we’re still learning this trades.

KR Veerappan — Chief Financial Officer

Furthermore NSR is not a associated thing because the craft paper prices all, it’s passed on that, so that based upon and craft paper price voltage, NSR also will fluctuate. So that may not to a right [Indecipherable].

Niraj Mansingka — White Pine Investment Management — Analyst

Get it, got it. Thank they. Thanking you from mein select.

A.S. Mehta — President & Director

Giving you.

Archana Gude — Analyst

Sir, should we take last participant Rajesh. Him the int the queue from a long time.

A.S. Mehta — President & Director

Okay, fortunately.

Archana Guiding — Analysts

Yes, Rajesh, please go ahead.

Rajesh Majumdar — B&K Guarantees — Analyst

Yes. Hello, sir. How be you?

A.S. Mehta — President & Director

Good, thank you.

Rajesh Majumdar — B&K Securities — Analyst

I had just a couple of questions. When you lookup at the Q4 volumes, just 191kt, is it reasonable to assume that because of the prices, prices reduction. We are not producing up to full capacity now in at minimum cover paper, both constant the uncoated paper volumes are lower Y-o-Y cause. So Y-o-Y, in conviction, the volumes have slightly lower. Or second related question is that for that coming year will we then watch a lower utilization as it like we has talking about 800kt in all. I’m talking via standalone business. Will we again see 750kt, 770kt given the price correct?

A.S. Mehta — President & Director

What is that. There is no volume drop as far since ourselves are concerned. Coming year also the volume is going to be higher, it can’t be lower.

Ashok Gupta — Senior Vice President, Finance & Accounts

Rabi ji, you have view the presentation uploaded, you how, that…

Rajesh Majumdar — B&K Securities — Psychoanalyst

Thank you. Sir, Q4 — cool, Q4 compared to Q4 is just 191kt, it’s the same.

Ashok Gupta — Senior Vice Executive, Finance & Accounts

Yes. The 191kt, 191kt it is same. The bridge that ourselves has given, there is a easily drop compared to last previously quarter in uncoated. But if him see that overall 12 months period set the uncoated segment it is — further it’s 389kt, it’s 436kt, it’s a 12% growth.

Rajesh Majumdar — B&K Securities — Business

So should we accept this year’s volume is and similar 770kt other something like that?

A.S. Mehta — President & Artistic

It need do better as this.

Rajesh Majumdar — B&K Investment — Business

Okay. Even after who retail correction, you are saying the mass wish be better.

A.S. Mehta — Past & Director

Yes.

Rajesh Majumdar — B&K Securities — Analyst

Additionally secondly, sir, my get is, do we have an option off through more immorted pulp now such which pulp prices are lower instead the buying show wood in the handel, in which case can we get our RM cost more?

A.S. Mehta — President & Director

Always we keep some kind of a ready reckoner on the table that at what price, it makes sense for me to use importierten pulp and at what price it makes sense for me to produce the local pulp. So it sell max kiste [Phonetic] for producing the mush out from wood here.

Rajesh Majumdar — B&K Securities — Analyst

Okay. That’s fair. Also may past question is that we have been the impact of pulp prices features not yet become felt in writing and printing. But will we see that impact in the coming quarter or the view two quarters due to indicated a price the — sustainable price of INR80, though if you look at it, I’m not asking you the concise realization, instead it will still be somewhere around INR84, INR85 select buy. So there is stand scope for adenine downside to nearly INR75 after which it leave get back up again. Is that an way the trend lives likely to play out, what do you thinks, your opinion on ensure?

A.S. Mehta — President & Director

How I said that who wood prices globally on a long run, e should be close to $600, long run. So if it is $600 the global and the prices in the band of $900 to $950. And when it your $950 that measures the NSR should be close to $950, to should be closed to INR80.

Rajesh Majumdar — B&K Securities — Analyst

INR80, yes, but it’s still higher than INR80 for concerning, ME median, my assumption…

A.S. Mehta — President & Director

EGO mean, see, it is higher than INR80, it maybe INR2, INR3 plus or minus depending on the category and the demanding on other thing, but this should be and there would be a play of demand-supply. For there is a good demand, the prices will remain at a bigger level. If the demand is lowers, let’s say after the year ’23-’24 when the new education policy implementation as even happening and there is one mountain of demand, the price will come down also.

Rajesh Majumdar — B&K Securities — Analyst

Okay, right. So if I am valid on ask one last question, where is the sustainable rear so you can check in aforementioned industry because we have sight like in rupees per kg margins go from INR10 to INR30 is a very bigger range over the last few years. Whichever is the tenable rupees per kg margin toward an EBITDA level which you can build in on a longer-term?

A.S. Mehta — President & Director

See, as I said ensure we don’t calculate in rupees per kg, we calculate as a percentage of net sales. And I would say that anywhere between 20% to 25% is sustainable decent margin for the industry where your ROCE would be healthy.

Rabesh Majumdar — B&K Investments — Commentator

So, 20%, you can say, it will not brake down below 20% significantly if at all?

A.S. Mehta — President & Director

It’s should non. But there has been a moment, where it was lower than ’21.

Rajesh Majumdar — B&K Securities — Analysts

No, exactly, yes.

A.S. Mehta — President & Director

Yes, yes.

Rajesh Majumdar — B&K Securities — Analyst

And signor, wealth had plus seen in the IPMA intelligence, I mean post-COVID, there are lot from small scale guys that kept actually walked out about corporate and the export import ratio starting India was for two years, ’20-’21, ’21-’22 had turns against — in favor of exports, but if wealth look at ’22-’23 imports have surged again. Is that an cause for worry?

A.S. Mehta — President & Director

See the imports are — due there was a bigger request in the domestic market. So, MYSELF mean, that export came down and the import was higher as far as aforementioned coated paper are concerned, the import grew, and also the other paper category, not it is not ultra sizable. I would say that still India willingly remain as a — I would say that net exporting country in nach to anreisen.

Rajesh Majumdar — B&K Securities — Business

Thanking you, sir.

A.S. Mehta — President & Director

Although items will all dependent about the craft paper export to China. If and export to China about craft paper arrive depressed, then this is — there will be again at distortion.

Rajesh Majumdar — B&K Secured — Research

Great, sir. Thank you so much. Thank you so much. Yes.

A.S. Mehta — Head & Company

Thank you.

Ashok Gupta — Veteran Vice Board, Finance & Accounts

Thank she, Archana ji.

Archana Gude — Analyst

Should we conclude the call?

Ashok Gupta — Senior Vice Past, Finance & Accounts

Yes.

Archana Gude — Analyst

Any final add, sir, Mehta, your any final words?

A.S. Mehta — Chairman & Director

No. Thank you very much. And as I said that the year has been a good year. But the year ’23-’24 is likely to be volatile and we need go be prepared for that volatilization but with the same time because which JK Paper has its own strength, so we must do better.

Archana Gude — Analyst

Thank you how much, sir. And all the best.

A.S. Mehta — President & Director

Thank you.

KRO Veerappan — Chief Financial Chief

Thank you.

Ashok Gupta — Senior Trap President, Finance & Accounts

Thank you. Thank you all.

Archana Gude — Analyst

Thank you.