The Paper Products Ltd

PBT for Q1-2009 grows by 38%

Mumbai, April 28, 2009: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its unaudited Financial Results for the quarter ended March 31, 2009. The company achieved net sales of Rs.143.17 crores during the quarter, representing a marginal decrease of 1.9% from net sales of Rs.145.99 crores in Q1-2008. The profit before tax is Rs.16.31 crores compared to Rs.11.78 crores in Q1-2008 showing a growth of 38.5%. The basic and diluted earnings per share is Rs.1.76 as compared to Rs.1.50 in Q1-2008, & Rs.0.61 in Q4-2008.

The company had during 2008 changed the earlier practice of reporting net sales including inter unit transfers to reporting only net external sales. Accordingly net sales figures for Q1-2008 have been appropriately restated.

The sales decrease of 1.9% is primarily due to the credit squeeze in the market causing a sharp decrease in inventories with our customers and in their sales channels, and , also due to some downward revision of selling prices consequent to a reduction in raw materials prices. Profit has been better due to a more favourable product mix & better cost efficiency management in response to the economic situation.

Reconstruction of the Thane Plant is on going & relocation of operations in a phased manner is in progress & the facility is partially operational.

 

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with 2008 gross sales of Rs.675 crores, and net capital employed of about Rs.313 crores.

Since 1999, PPL is a joint venture with the global packaging major, Huhtamaki Oyj, Finland who hold about 59% of the equity capital. Huhtamaki is one of the world's top ten consumer packaging multinationals.

PPL is a pioneer and the technology and market leader in flexible packaging in India with manufacturing facilities at Thane, Silvassa, Hyderabad and Rudrapur. It meets the packaging needs of almost the entire range of FMCG segments including personal products, personal wash, laundry, foods, sauces, beverages, bakery products, spices, chocolates and confectionery, dairy and also for seeds, specialized chemicals, electronics, healthcare and many other specific specialized uses including anti-spurious packaging.

The Package Protection and Decoration products range includes latest leading edge technologies - shrink sleeves, wrap-arounds, heat transfers, pressure sensitives and metallised paper labels.

Manufacturing of specialized cartons and cartoning systems, manufacture of poly films, specialized barrier metallising and high-end application extrusion coating are also part of PPL's product offerings.

The company's packaging machines division offers complete packaging solutions to customers.

PPL mainly caters to the premium segment of packaging and its clients include Britannia, Cadbury, Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Latex, Hindustan Unilever, HPCL, ITC, Marico, MICO, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG, Wipro and may more.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance & Joint CFO The Paper Products Limited Board: +91 - 22 - 2534 3691- Ext. 453 Mobile +91 - 98216 04825