Orient Paper reported a strong set of third quarter earnings. Revenues for the quarter were up 12.4 percent year on year (YoY) at Rs 189 crore versus Rs 168 crore. YoY EBITDA was up 39.8 percent at Rs 36.4 crore versus Rs 26.1 crore. Margins in Q3 were up 19.2 percent versus 15.5 percent YoY.

Throwing further light on the quarterly performance and the outlook going forward, ML Pachisia, MD of Orient Paper & Industries, told CNBC-TV18 that the margins in Q3 expanded on the back of strong volume growth of around 11 percent and not on price hikes.

Costs too came down and capacity utilisation in Q3 stood at 95 percent, he said.

The tissue business that contributes 40-45 percent to the overall revenues, continues to grow both in the domestic and export market, said Pachisia, adding that 60 percent of the tissue business is exports. The capacity for the tissue business would be 100 percent in next few months.

On the price front, he said paper prices have been steady and the company expects them to remain that way. Therefore, in fourth quarter the firm would be able to maintain current realisations, he said.

Margins in the fourth quarter could go higher than 19 percent of Q3, he said.

He also clarified that as of now, the firm has no plans to monetise some of their non-core assets because it does not require cash. He said the company is virtually debt-free now. The total debt including working capital debt is around Rs 30 crore only.