Orient Paper & Industries Limited’s (OPIL) Board met in New Delhi today and announced the following:Higher sales value and volumes

· Net sales for the quarter increased to Rs. 320.67cr from Rs. 269.98 cr last year. For the 9 months ended 31st December, net sales have gone up to Rs. 913.8 cr vs. 757.8 cr last year. This represents a growth of 19 % for the quarter and 21% for 9 months ended 31st December.

· Segment wise break-up of net sales: Cement – 59%, Paper – 24%, Fans – 17%.

· Cement & clinker sales volumes registered a growth of 22% for the quarter at 6.78 lac tons against 5.58 lac tons last year. This reflects 100% utilisation of the recently increased capacity of 27 lac tons per year.

· Cement & clinker sales increased to 19.40 lac tons against 17.05 lac tons for the same period last year.

· Paper sales increased to 59500 tons from 56626 tons for the corresponding period last year.

Substantially increased Operating profits

· Operating margin increased to Rs.92.9 crores for the quarter and Rs.273.2 cr. for 9 months.

· This represents a 63% increase over last year for the period ended 31st December.

Best-in-class Segment results

· Orient’s cement business has recorded a PBIT of 43% of net sales and ranks as one of the most profitable in the Indian cement industry.

· Paper and fan divisions have also recorded increased profitability and rank amongst the best in their respective industry segments.

Big jump in Net profit after tax and EPS

· Net profit after tax for 9 months increased from Rs. 82.7 cr to Rs. 156.4 cr, recording an increase of 89% over the same period last year.

· This translates to an EPS of nearly Rs. 94 for 9 months on the expanded capital base.

On-going expansion projects progressing satisfactorily

· 1st phase of cement expansion (from 2.4 mtpa to 2.7mtpa) was completed at the end of last quarter. It is noteworthy that the expanded capacity could be stabilized so quickly as reflected in its 100% utilisation during this quarter.

· 2nd phase of cement expansion (2.7 mtpa to 3.4 mtpa) is at the final stages of erection and is expected to be completed on schedule within the current financial year.

· 3rd phase of cement expansion (3.4 mtpa to 5 mtpa) is also on track and is expected to be completed on schedule before end of next financial year.

· The new 50 MW captive power plant at Devapur, which will further improve the cement division’s profitability, is also expected to be completed during the next financial year.

· Orient continues to maintain its leadership position in tissue paper segment. Further expansion of tissue paper capacity, which is expected to be completed in 08-09, will further improve this position.

· In its electrical division, Orient is at an advanced stage of launching CFL and lighting products within the next few weeks. This will be a major diversification of its product range in this business.

Mr. M. L. Pachisia, Managing Director OPIL, said,” I am satisfied at the continuous progress achieved by the Company so far and I am confident that this trend will gain further momentum with new capacities being added coupled with other efficiency and cost improvement initiatives taken by OPIL in all its businesses”.

Sourced from: C.K.Birla Group

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