PAKKA LIMITED — Important, 08-02-2025: Financial Result Updates

Total income for the quarter ended December 31, 2024, reached ₹11,062.92 crore, up from ₹10,123.64 crore in the same quarter last year, reflecting a strong revenue growth of 9.3%. Key drivers for this increase include robust demand in the paper and pulp segment, which saw revenue of ₹9,388.24 crore, and efficient operational improvements in the moulded products sector.

Net profit for the quarter stood at ₹889.28 crore compared to ₹990.73 crore a year ago, highlighting a decrease of 10.2%. The Earnings Per Share (EPS) for this quarter is reported at ₹2.17, down from ₹2.57 in the previous year. This decline can be attributed to increased operational costs, particularly in employee benefits, which rose by approximately 6.2%.

Operational expenses totaled ₹9,703.30 crore for the quarter, marking an increase of 12.1% year-over-year. Significant contributors to these costs were raw material consumption and employee benefits, necessitating a focus on cost control strategies moving forward.

The balance sheet shows total assets of ₹70,403.90 crore with total liabilities at ₹25,215.72 crore resulting in a solid capital employed of ₹45,188.18 crore. Cash flow remains stable, providing a strong foundation for future investment.

The outlook suggests continued emphasis on cost efficiency and market expansion, particularly in the paper segment. Considering the financial performance and strategic direction, a buy insight is proposed as the company positions itself well amidst a recovering economy.