Revenues were flat at Rs 3,158m both YoY and QoQ due to volume decline of 10.5% YoY and 1.8% QoQ at 71,099 tons. Newsprint (NP) volumes dip by 53.3% to 5,333 tons. During the quarter, Unit II was shut down for 30 days for plant upgradation to Writing & Printing (W&P;) business,...

NR Agarwal Value growth across all segments NR Agarwal (NRAI) continues to report good top line growth driven by 11.1% value growth YoY and 6.9% QoQ. Revenues at Rs 3,196m were up 17.6% YoY but declined 7.5% QoQ. (Q1 and Q4 being seasonally the best quarters, sequential comparisons would be misleading). Gross margins expanded by 300bps YoY and 210 bps QoQ on back of higher realizations (up by 11.1% YoY and 6.9% QoQ) as well as benign raw material prices. EBITDAM slipped 60 bps QoQ to 15.5% due to lower operating leverage (up ~380bps YoY). PAT increased by...

NR Agarwal (NR) continues to report robust topline growth on back of 13.0% volume and 5.6% value growth. Revenues at Rs 3,325m were up 20.2% YoY but declined 3.7% QoQ. Q4 is seasonally the strongest quarter, hence sequential comparisons would be misleading. Gross margins expanded by ~230bps both YoY and QoQ on back of higher realizations (up by 5.6% YoY and 2.4% QoQ) and lower raw material costs (lower by 1020%) which resulted in EBITDAM of 15.5% (up by ~360bps YoY and ~82bps QoQ). PAT increased by 35.6% YoY and 19.0% QoQ, to Rs 290m and EPS of Rs 17.1. Newsprint (NP) prices shot up by 37.1% YoY and 13.0% QoQ to Rs 44,124/ton. Newsprint prices are witnessing life time highs on back of lower newsprint production in China due...

NR Agarwal (NR) reported good numbers. Revenues were up 20.7% YoY and 9.6% QoQ at Rs 3,454m on back of higher realizations as well as low raw material cost due to ban on import of waste paper in China. This also resulted in EBITDAM expansion of ~185bps YoY and ~215bps QoQ to 14.7%. Duplex Board (DB) realisations improved 4.7% QoQ and 10.3% YoY to Rs 35,010 /ton and Newsprint (NP) prices by 20% to Rs 39,000/ton. Buoyancy in realisations is expected to continue. EBITDA grew 38.1% YoY, 28.4% sequentially to Rs 508m. PAT de-grew by 5.6% QoQ to Rs 244m due to higher tax rate and negative other income. EPS for the quarter stood at...

NR Agarwal Industries (NRAIL), is among the first and leading manufacturers of recycled paper in India. It is the largest manufacturer (175,000 MTPA, ~7% market share) of recycled grey back and white back Duplex Boards (DB) for over 25 years now and forayed into Writing & Printing (W&P;) paper segment in July'14. Presently, the company earns ~48% revenues from DB, ~43% from W&P; and balance from Newsprint. Recently they completed Rs1bn balancing capex which augmented capacities from 306,000 MTPA to ~350,000 MTPA. We see significant headroom for growth in paper, going ahead, given the low...