New Delhi, October 19, 2015 – Orient Cement Limited, a part of USD 1.6 billion diversified CK Birla Group, announced its financial results for the quarter ended September 30, 2015. The company has recorded net sales of Rs 355 Crore, decline of over 7% over same quarter last financial year. The operating profit has declined by over 50% to Rs 38 Crore. The net profit is Rs 28 crore, down by 35% over the same period last year.
Deepak Khetrapal, Managing Director and Chief Executive Officer, Orient Cement said, The quarter ended September 30 has been a particularly challenging one. Though we have done well on everything that was manageable, low cement prices across Maharashtra have led to a realization per ton drop of 10% over same quarter last year. We have also absorbed the impact of the newly levied District Mineral Foundation, which has been notified during the quarter. Our expenditure includes this cost even for the period January to June, 2015, which is in fact a prior period charge. Amidst these external developments, all our operating efficiencies and costs continue to get better, a result of our operating practices. The Company expects, along with the rest of the Industry, for the demand to pick up in the second half of FY16. Various projects for roads, “Swachh Bharat” initiatives and new AP capital at Amravathi should lead to better demand while lower interest rates should encourage private investment.
The highlight of the quarter is the commencement of commercial production at the Company’s Greenfield 3 MTPA plant at Gulbarga w.e.f September 26 this year. The impact of higher volumes from the new plant will be visible in the coming quarters.
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 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 5MTPA 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 new plant having been commissioned recently, Orient Cement Limited now has 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, Andhra Pradesh and parts of Tamil Nadu, Chattisgarh, Gujarat and MP.
Media contact:
Shankar Radhakrishnan; +919999384812; Shankar.Radhakrishnan@bm.com