Kuantum Papers : Investor Presentation

EARNINGS PRESENTATION - Q1-FY23

Executive Summary

• Kuantum Papers Ltd., is one of the leading wood and agro based paper manufacturers in India and is committed to manufacturing wood free, high quality maplitho, creamwove, copier and specialty paper.
• The company has an Integrated manufacturing facility of 1,64,250 MTPA with 4 Paper machines, Agro and Wood based pulping, Co-generation Power plant & Chemical Recovery Plant.
• Kuantum's products are extensively used in the printing of books, notebooks, annual reports, directories, envelopes, diaries, calendars, computer and office stationery.
• It has a strong long-lasting pan India dealership network of 100+ dealers from which it undertakes order based manufacturing.
• The company caters to marquee clients like Best Price, McGraw Hill, Kokuyo(Mumbai), Thomson, Lotus Global, Navneet Publications, Oxford University Press, Macmillan amongst others.
• Kuantum maintains a Social Farm forestry programme, thus contributing to future source of wood chips.

Q1-FY23 FINANCIALS (INR Mn)

Revenues

INR 2,742

EBITDA

INR 608

EBITDA Margin

22.17% `

PAT

INR 246

PAT Margin

8.97%

EPS

INR 2.82

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About Kuantum Papers

•	Incorporated in 1980, Kuantum Papers Ltd started its commercial operations in an
	economically backward village of Hoshiarpur, Punjab.
•	They started their commercial operations with 30 TPD and are currently operating at 450

Operational Revenue (INR Mn) &

EBITDA Margins (%)

8,304

TPD, after completion of their backward integration project in March'21.

• Due to its location in the foothills of the Shivalik range, Kuantum Papers has been

7,447

22.17%

	strategically utilizing agro residues like wheat straw, sarkanda and bagasse along with wood
	chips, veneer waste & bamboo to make high quality paper.
• The company's fully integrated manufacturing facility spread across 259 acres helps it gain
	advantage in terms of better operational efficiency and higher product offering.
• Kuantum's product offerings include maplitho, creamwove, copier paper and value-added
	specialty products like Azurelaid papers, parchment paper, cartridge paper, ledger paper,
	stiffner paper and coloured paper with a GSM range of 48 - 180 GSM.
• The company's major area of operations lie within 1,000 kms of the plant in Northern and
	Eastern India with a strong dealership network, many of whom have been associated with
	Kuantum since 3 generations.
•	The company manufacturers its products on an order-based system from its 100+ dealer
	network.
•	The company's social farm forestry program includes wood plantations of around 3,300
	acres. Post their maturity these plantations will be used as wood source for their facility
	hence contributing to better margin performance.

15.91%	4,039	14.33%	2,742
	7.25%
FY20	FY21	FY22	Q1-FY23

Production MT

1,51,740

1,26,633

82,522

37,336

FY20 FY21 FY22 Q1-FY23

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Key Strengths

Pan India presence with an extensive network of 100+ dealers

Long standing relationship with dealers, many associated with the company for over 3 decades

Largest product Portfolio in the Paper Industry covering Maplitho, Creamwove, Copier and Specialty Paper

Successful in creating a branded portfolio of products

Ability to command a price premium in the range of 5-7% over our competitors due to better quality of products and superior market orientation

Market based sales rather than government orders. Customers are delighted to deal with us rather than our competitors due to regular and timely supplies

Cost savings through executed Backward Integration Project will lead to improved EBITDA margins in the range of 28-30%

Improved infrastructure of paper machines in order to be more cost effective

Located near densely populated Northern Region

including NCR, a higher paper	consumption
market
Strategic location in	Punjab	with abundant

availability of raw materials such as Wheat Straw, Sarkanda, Kana Grass & Bagasse, allows us to get steady supplies at stable prices

Raw Materials are perfect substitutes of each other, so we are not dependent on any single one throughout the year

Future source of wood chips: Social farm forestry programme which will serve us for our future source in-house wood pulp requirement

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