November 25, 2023 (MLN): Roshan Packages Limited (PSX: RPL) has kindled a paradigm shift in the paper business landscape by making an investment in Roshan Sun Tao Paper Mills which will enable the company to recycle around 100,000 tons of paper, the management of the company informed during the corporate briefing session held yesterday.

Sun Tao Paper Mills project will take almost 2 years to complete while its projected capex stood at Rs5 billion with a debt and equity mix of 60% and 40%, respectively.

Hopefully, the project will allow the company to achieve operational efficiency which would result in improved margins.

In order to reduce energy costs, the company has installed a 1MW solar plant on one of their units while the planning to install the same in another unit is underway.  

Responding to the concerns, the management clarified that the company is not affected by the increase in system gas price as they are already procuring gas at RLNG rate.

The management also discussed the financial performance of the company in FY23 wherein the company reported a profit of Rs29.41 million [EPS: 0.21] compared to a profit of Rs190.18m [EPS: 1.34] reported in the Same Period Last Year (SPLY), reflecting a significant decline of 84.53% YoY.

The drop in profits was due to the restrictions on the import of raw materials, rapid increase in fuel rates, and devaluation of PKR leading to higher landed costs of raw materials exchange loss on foreign currency and higher interest rates.

Looking forward, the company is committed to its policy to play a significant role in Pakistan's emerging green economy, not only by reducing its environmental footprint but also by aiding other industries in minimizing their impact through the recycling program and recyclable packaging offerings.

The management is confident in the company’s ability to thrive and create lasting value for the stakeholders in the years ahead.

Copyright Mettis Link News

Posted on: 2023-11-25T23:47:27+05:00