CK Birla Group flagship Orient Cement posts 31% quarter-on-quarter growth in net profit

New Delhi, August 08, 2014 - Orient Cement Limited, a part of USD 1.6 billion diversified CK Birla Group, announced its financial results for the quarter ended June 30, 2014. The company has recorded net revenues of Rs. 436 crores and net profit of Rs. 34 crores, reflecting a 31% increase in quarter-on-quarter net profit.

Key indicators (in crores)
  Q1 FY14 Q4 FY14 Q1FY15 Year-on-year change Quarter-on-quarter change
Revenue 427 454 Rs 436 2% -4%
Net profit 37 26 Rs 34 -8% 31%

Orient Cement has bucked the trend by posting a 31% growth in net profit on a quarter-on-quarter basis to reach Rs. 34 crores, despite a marginal 4% drop in revenues. This was accomplished through disciplined cost management, strong capacity utilization and a product mix favouring blended cement.

Deepak Khetrapal, Managing Director and Chief Executive Officer, Orient Cement said, "In the first quarter we have achieved capacity utilization of 87%. In spite of sluggish prices during most of this quarter coupled with increase in input costs, Orient Cement has bolstered net earnings. We will continue to focus on both topline and bottom line growth in line with expectations."

Overall realisation also increased by 1% despite industry reports of prices being subdued most of the quarter in South India. Orient Cement has achieved capacity utilisation much higher than the industry average for the quarter and especially robust compared to players in South India.

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