Orient Cement Posts 20% Drop In Net Profit at Rs.28 Crore
Orient Cement, a company under the CK Birla group on Tuesday, the 4th of this month reported a 20 per cent fall in their net profit for cement.
The figures in a nutshell:
*** Net Profit at Rs 27.89 crore for the June quarter as against a net profit of Rs 34.87 crore for the corresponding period a year ago.
*** Total Income at Rs 394.39 crore as against Rs 382.65 crore for the corresponding period a year ago a drop of 8.69%.
*** Total Expenses at Rs 301.34 crore as against Rs 327.36 crore for the corresponding period a year ago.
Orient Cements MD and CEO Deepak Khetrapal summed up the cement company's performance thus:
Q1FY16 has been a difficult quarter for the cement industry, with cement markets in west and north struggling to register any demand momentum.
Low cement demand and low cement capacity utilization has put further pressure on cement prices. Orient Cement had lost 10 per cent of their cement sales volume.
He also shared his views on the future:
Orient Cements will continue to focus on cost optimisation and increasing efficiency in power and fuel consumption.
The mining lease on July 31 for Orient Cements' upcoming Greenfield facility in Gulbarga, which is scheduled for commissioning within the next 4-6 weeks has been granted by the Karnataka Government.
As part of the growth plan to reach 15 million tonnes per annum (MTPA) by year 2020, Orient Cement is setting up a cement capacity of 3 MTPA at Chittapur, in Gulbarga, Karnataka at an investment of approx. Rs 2,000 crore.
Cement demand had been very sluggish across the country and there would not be much improvement in July-September quarter.
Post-Diwali, construction activities are expected to pick up and the things would start looking up for the cement industry.
Orient Cement MD and CEO Interview.
Extra Reading on this topic
Orient Cement Results
Cement Business Standard
Cement Economic Times
Cement Money Control
Orient Cement, a company under the CK Birla group on Tuesday, the 4th of this month reported a 20 per cent fall in their net profit for cement.
The figures in a nutshell:
*** Net Profit at Rs 27.89 crore for the June quarter as against a net profit of Rs 34.87 crore for the corresponding period a year ago.
*** Total Income at Rs 394.39 crore as against Rs 382.65 crore for the corresponding period a year ago a drop of 8.69%.
*** Total Expenses at Rs 301.34 crore as against Rs 327.36 crore for the corresponding period a year ago.
Orient Cements MD and CEO Deepak Khetrapal summed up the cement company's performance thus:
Q1FY16 has been a difficult quarter for the cement industry, with cement markets in west and north struggling to register any demand momentum.
Low cement demand and low cement capacity utilization has put further pressure on cement prices. Orient Cement had lost 10 per cent of their cement sales volume.
He also shared his views on the future:
Orient Cements will continue to focus on cost optimisation and increasing efficiency in power and fuel consumption.
The mining lease on July 31 for Orient Cements' upcoming Greenfield facility in Gulbarga, which is scheduled for commissioning within the next 4-6 weeks has been granted by the Karnataka Government.
As part of the growth plan to reach 15 million tonnes per annum (MTPA) by year 2020, Orient Cement is setting up a cement capacity of 3 MTPA at Chittapur, in Gulbarga, Karnataka at an investment of approx. Rs 2,000 crore.
Cement demand had been very sluggish across the country and there would not be much improvement in July-September quarter.
Post-Diwali, construction activities are expected to pick up and the things would start looking up for the cement industry.
Orient Cement MD and CEO Interview.
Extra Reading on this topic
Orient Cement Results
Cement Business Standard
Cement Economic Times
Cement Money Control
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