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Orient Cement's Q4 Net declines 77% to Rs 19.4 cr

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Press Trust of India New Delhi
Last Updated : May 04 2016 | 10:28 PM IST
Orient Cement today reported a 77 per cent fall in standalone net profit at Rs 19.4 crore for the quarter ended March 31, 2016.
The firm, part of the diversified USD 1.6 billion C K Birla Group, had reported a net profit of Rs 85.5 crore in the year-ago period, it said in a BSE filing.
Total standalone income rose by 14 per cent to Rs 449.3 crore in the January-March quarter in last fiscal from Rs 394.3 crore during the same quarter in 2014-15.
In the October-December quarter, the firm had posted a standalone net loss of 13 crore and a total income of Rs 353.7 crore.
Commenting on the performance, Orient Cement's Managing Director and CEO Deepak Khetrapal said the March quarter has seen a good recovery in volumes across core areas, especially AP and Telangana, which is reflected in the utilisation levels in April-June 2016-17 quarter.
"However the low price environment in our core markets continues to persist, with prices dropping lower in Andhra Pardesh/Telangana in the recent few weeks," he added.

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On average, cement net sale realisations have been 3 per cent lower than the last quarter and more than 15 per cent lower than the same period last year.
"Amidst these difficult external developments, we continue to focus on our operating efficiencies and costs in our existing operations continue to get better, a result of our best in class operating practices," Khetrapal said.
The costs related to the commissioning/stabilisation of the new integrated unit at Chittapur (Karnataka) have affected the firm's operating and net profit numbers in the last two quarters.
"However, we are already seeing some mitigation from the positive impact of higher volumes from this unit and expect higher volumes and increased operating efficiencies to compensate further in the quarters ahead," he added.
On outlook, Khetrapal said: "The company expects demand to pick up in a few quarters on the back of housing and construction activity, especially so if predictions of a favourable monsoon season are met."
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 Andhra Pradesh at Amravathi is also expected to contribute to higher cement appetite in Southern India, he added.

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First Published: May 04 2016 | 10:28 PM IST

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