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On Thu, Aug 4, 2016 at 7:51 AM, Mihir Desai <desaimihir111@gmail.com> wrote:
>
>
>
> Press Release
>
>
>
> CK Birla Group flagship Orient Cement posts
> volume growth of 43% for quarter; stabilisation of new greenfield plant
> progressing well
>
>
>
> Hyderabad, August 03, 2016 - Orient Cement Limited, a part of the USD 1.6
> billion diversified CK Birla Group, announced its financial results for the
> quarter ended June 30, 2016. The company has reported volume growth of 43%
> over the corresponding quarter last year on account of increasing volumes
> from both old operations and the newly commissioned plant at Chittapur in
> Gulbarga district, Karnataka. The Company has recorded Net Sales of Rs. 436
> crores and EBITDA of Rs. 44 crores for this quarter.
>
> The new capacity is continuing to extend the Company's reach into new
> markets in south India, most notably AP and Karnataka, while strengthening
> its position in Telangana and Maharashtra. The new plant is expected to
> fully stabilize operations in the next couple of quarters, thus driving
> increased profitability as well as deeper and farther access to markets
> going forward.
>
> Deepak Khetrapal, Managing Director and Chief Executive Officer, Orient
> Cement said, Volumes across all our markets are higher versus the
> corresponding quarter last year due to the increased utilization of our new
> capacity at Chittapur, which is now operating at close to 60%. However, the
> quarter ended June 30 has seen an overall slowdown of volume growth versus
> the previous quarter. In particular, lower volumes in AP/Telangana and parts
> of Maharashtra have been partially compensated by the rapid growth of volume
> into Karnataka, west Maharashtra and MP/Chattisgarh, enabled by our new
> capacity. The old operations achieved a capacity utilization of 82% in
> Q1FY17.
>
> The low price environment in our core markets continues to persist. On
> average, cement net sale realisations have been flat compared to the
> previous quarter and around 10% lower than the same period last year.
>
> Amidst these difficult external developments, we continue to focus on our
> operating efficiencies. The high costs related to the
> commissioning/stabilization of our new integrated unit at Chittapur affected
> our operating and net profit numbers in the quarter. However, most of these
> challenges have now been addressed and with improving capacity utilization
> at this unit, the costs are expected to be normalised soon.
>
> The Company expects demand to be subdued in the July-September quarter due
> to ongoing heavy monsoon. However, good rainfall is expected to provide a
> strong boost to cement demand in the post monsoon months. Various
> government projects for low cost housing, roads, irrigation, metros as well
> as new initiatives like "Smart Cities" & "Swachh Bharat" are still expected
> to result in improved demand for cement in Telangana, AP and Maharashtra.
> The construction of the new capital of AP at Amravathi is also expected to
> contribute to higher cement appetite in Southern India.
>
> About the CK Birla Group
>
> The CK Birla Group is a US$1.6 billion diversified conglomerate that over
> the years has developed a strong footprint in manufacturing, engineering,
> technology, hospitals and education. With over 20,000 employees, 27
> manufacturing facilities and a customer base that includes some of the
> world's best-known companies, CK Birla Group's businesses are present across
> five continents.
>
> The Group's companies operate in the sectors of Technology and Automotive,
> Home and Building, and Healthcare and Education. Companies in the
> Technology and Automotive cluster comprise AVTEC, Birlasoft, GMMCO, NEI and
> Neosym. These companies are leaders in manufacturing products for the
> automotive and related industries globally. The Group's manufacturing
> capability is further strengthened through its Home and Building solutions
> companies: HIL, Orient Cement, Orient Electric and Orient Paper. These
> companies manufacture everyday usage products like paper, fans, kitchen and
> home appliances, building materials like cement, low weight blocks and
> panels, pipes and fibre roofing sheets.
>
> CK Birla Group also has two hospitals in Kolkata: CMRI, a multi-specialty
> hospital with and BM Birla Heart Research Centre, the first NABH-accredited
> research and treatment centre for heart disease. The CK Birla Group has a
> presence in the Education sector through the Birla Institute of Technology,
> Mesra, Ranchi, Modern High School for Girls, Kolkata and Rukmani Birla
> Modern High School, Jaipur.
>
> The CK Birla Group is deeply committed to creating sustainable positive
> impact. The Group allocates significant resources to philanthropic
> initiatives; including those in science and technology, art and culture, and
> heritage preservation. The Group also works to improve the livelihoods of
> rural and underprivileged communities.
>
> For more information visit us at www.ckbirlagroup.com
>
> About Orient Cement
>
> Orient Cement Limited is part of the USD 1.6 billion diversified CK Birla
> Group. Earlier a division of the multi-product, multi-unit Orient Paper and
> Industries Limited, Orient Cement was de-merged with effect from April 1st,
> 2012 and became a public limited company. The company produces 5 MTPA cement
> annually from its two plants in Andhra Pradesh and Maharashtra. Its first
> Greenfield project at Devapur in Adilabad District, Andhra Pradesh began
> cement production in the year 1982. In the year 1997, a split-grinding unit
> (also a Greenfield project) at Nashirabad, in Jalgaon, Maharashtra was
> added. With the new plant at Chittarpur in Gulbarga district, Karnataka
> having been commissioned in September 2015, Orient Cement Limited now has a
> total installed capacity of 8 million tons.
>
> Orient Cement is certified for both ISO 9001:2008, and ISO 14001:2004 and
> also OHSAS 18001:2007 from Det Norske Veritas, Netherlands. The company
> sells cement under its popular brand Birla A1 Premium Cement in Maharashtra,
> Telangana, Andhra Pradesh, Karnataka and parts of Tamil Nadu, Chattisgarh,
> Gujarat and MP.
>
> Media contact:
>
> Japneet Kathuria; +919899594910; Japneet.kathuria@bm.com
>
>
>
>
>
>
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