Seshasayee Paper Reports ₹104.56 Cr Profit in FY25, Declares ₹2.50 Dividend

🏢 Company Overview – Seshasayee Paper and Boards Ltd.

Seshasayee Paper and Boards Ltd. (SPBL), headquartered in Erode, Tamil Nadu, is a leading player in the Indian paper manufacturing sector. Incorporated in 1960, the company produces writing, printing, and packaging papers and has consistently shown financial prudence and strong operational performance. It also holds interests in engineering and sugar sectors via subsidiaries and associates.

📊 Key Market Data (FY 2024–25)

📘 Report:

Seshasayee Paper and Boards Ltd. (SPBL) has declared its audited financial results for the fiscal year ended March 31, 2025. The company posted a standalone net profit of ₹104.56 crore compared to ₹259.37 crore in the previous year. The consolidated net profit stood at ₹109.17 crore. Total standalone revenue from operations came in at ₹1,824.26 crore, slightly lower than the previous year’s ₹1,853.04 crore. The company has also declared a dividend of ₹2.50 per equity share (face value ₹2), marking a stable reward to shareholders despite margin pressures.

The Board approved the financials at a meeting on May 10, 2025, and also scheduled the 65th AGM for June 14, 2025. Book closure for dividend and AGM is fixed from June 5 to June 14, 2025. A notable event during the year was the ongoing revival efforts for Servalakshmi Paper Ltd., whose acquisition process remains under litigation but with visible progress. Financial highlights showed resilience amid cost escalations, with a total comprehensive income of ₹104.49 crore (standalone) and ₹107.20 crore (consolidated).

Despite a fall in profits due to lower operating margins and higher tax provisions, the fundamentals remain strong, evidenced by steady cash flows and retained earnings growth.

📌 Report in Points:

🔹 📆 Board Meeting Date: May 10, 2025
🔹 📝 Approved Financials: FY25 Standalone & Consolidated Audited Results
🔹 💰 Dividend Declared: ₹2.50 per equity share (FV ₹2)
🔹 📊 Net Profit (Standalone): ₹104.56 Cr | EPS: ₹17.36
🔹 📈 Revenue (Standalone): ₹1824.26 Cr
🔹 📉 Profit Decline: From ₹259.37 Cr (FY24) to ₹104.56 Cr (FY25)
🔹 📅 AGM Scheduled: June 14, 2025 at 11:00 AM
🔹 📚 Book Closure Dates: June 5–14, 2025
🔹 🔒 e-Voting Cut-Off Date: June 7, 2025
🔹 🏗️ Revival in Progress: Servalakshmi Paper Ltd. assets acquired; NCLAT appeals pending
🔹 🪙 Reserves: ₹1899.87 Cr
🔹 📉 Operating Cash Flow: Negative ₹61.28 Cr due to WC build-up
🔹 🏦 EPS (Consolidated): ₹18.13
🔹 📈 Equity + Reserves: ₹1911.91 Cr (Standalone)

📉 Effect on Share Market

📌 Short-Term Impact:

• Positive sentiment expected due to dividend declaration

• Slight concern due to year-over-year drop in profitability

📌 Medium-Term:

• Stability in operations and ongoing revival projects could support price consolidation

• EPS and high reserve levels suggest strong fundamentals

📌 Long-Term:

• Positive outlook backed by cash-rich position and limited debt

• Market will watch progress of Servalakshmi Paper integration and sector growth

🧑‍💼 How Retail Traders Can Benefit

✅ Dividend income from ₹2.50/share
✅ Safe long-term value stock with low volatility
✅ Moderate returns with potential upside on successful asset revival
✅ EPS strength and consistent board governance = low risk
✅ Attractive for dividend yield and SIP-type investors in paper/industrial segments

💬 Phrase:

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📉 Stock Market Disclaimer

Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.