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Earnings Call Transcript

Kuantum Papers Earnings Call Transcript: Key Takeaways

Kuantum reported weak Q2 performance due to a major plant shutdown for modernization, coupled with high West Asia-linked input costs.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growthOperating income ₹279 Cr, declined 8% QoQ due to plant shutdown.
MarginsEBITDA margin moderated to 12.4% on high raw material/fuel costs.
Order bookFull capacity utilization maintained via advance orders despite lean season.
Demand visibilityStrong Q3 outlook; festive season and lower imports aiding domestic demand.
Management confidenceConfident, focusing on post-modernization efficiency gains and debt repayment.

Growth

Revenue fell 8% QoQ to ₹279 Cr; volume-led decline partially offset by record copier production in August.

Outlook

Management guides ₹1,300 Cr+ revenue for FY27 and 18-20% EBITDA margins for FY28.

Risks

West Asia war inflating chemical costs; agricultural raw material scarcity driving prices up.

Last quarter's promises, checked

Delivered

  • PM3 upgrade live within ~1 month → all 4 machines modernized (= BEAT)
  • Peak debt ≤₹760–770 Cr → ₹700 Cr (= BEAT)

Partly delivered

  • Full-plant output post-PM3 → Q2 volume down on 59-day shutdown; full utilization via advance orders (= PARTIAL)
  • NSR ₹72–75k/t in 4–6 months → 7–11% H2 price hikes planned, outcome pending (= PARTIAL)
  • Debt repayment ₹170–175 Cr/yr → not disclosed (= PARTIAL)

Missed

  • FY27 revenue ₹1,400–1,500 Cr → cut to ₹1,300 Cr+ (= MISS)
  • EBITDA margin 16–18% by year-end → 12.4% in Q2 (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: KUANTUM. Summary written with AI assistance from the document.

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Kuantum Papers Ltd: key numbers

Share price
₹64.78
Market cap
₹565.3 Cr
Revenue (annual)
₹1,093 Cr
Net profit (annual)
₹41.95 Cr
P/E (TTM)
17.4×Sector 45.0×
Promoter holding
70.30%+0.00% QoQ
FII holding
0.02%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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