New Delhi, 09th November 2022: Orient Bell Limited (BSE: 530365; NSE: ORIENTBELL), hereinafter referred to as OBL, a leading manufacturer of ceramic and vitrified tiles with a capacity of ~33.8 million square meters per annum, has reported results for the quarter and half year ended September 30, 2022.
- Despite significant savings on the consumption front, increase in energy and raw material input costs led to margin contraction in Q2.
- We however, continued to invest on agreed strategic areas – people, displays, branding and distribution.
- 1HFY23 performance is still stronger aided by normalized business conditions.
- Strong focus on working capital management continues – Cash Conversion Cycle continues to be <25 days on September 30, 2022.
- Net debt below ZERO at Rs (-)5.9 crore as on September 30, 2022.
Consolidated Financial Highlights: –
(in Rs. Crores)
|Income from Operation||167.5||171.4||2.4%||254.0||324.6||27.8%|
|Other Operating Income||0.2||1.6||601.7%||0.4||2.9||616.1%|
|Revenue from Operations||167.7||173.0||3.2%||254.4||327.5||28.7%|
- Completion of “Scale Up” CAPEX project at Hoskote (Floor) within Q2FY23 – incremental capacity added 1.8 MSM p.a..
- Credit Rating
After the upgrade by CRISIL in Q1, Fitch (India Rating) too has reaffirmed OBL’s short term credit rating as IND A1 in Q2FY23.
New Glazed Vitrified Tiles (GVT) Line at Dora (near Vadodara, Gujarat) announced to “Scale-Up” volumes in South & West – Capacity of 3.3 MSM p.a.
With the on-time successful commissioning of the 3 Growth Capex projects within 1HFY23, the Company has decided to continue strategic investments to increase vitrified capacity further by 3.3 MSM p.a. at the existing plant at Dora, Gujarat.
The New GVT Line will enable OBL to improve our product offering especially for the bigger and high growth markets of South & West.
Total Capex Investment for this project is expected to be ~Rs. 76 crores and the new line is expected to be commissioned by Q3FY24.
The capex will be funded via internal accruals and bank borrowings.
“The Round 1 GROWTH capex projects that we had announced over the last 2 years are already in place now and the early signs indicate that we are on track with the larger goals that we had outlined for ourselves at the beginning of the journey.
We have demonstrated that these projects have not only been completed on time but within the agreed budgets as well and that too retaining our strength on the Balance Sheet front.
South & West are still far bigger in terms of opportunity and knowing that we still have a lot to catch up, we are now ready with our first phase of Round 2 Growth Capex initiatives.
Once Commissioned, the New GVT line at Dora will not only help us improve scale but would also ensure that we are future-ready with better high margin product offering” Aditya Gupta, CEO, Orientbell Tiles commented on the occasion.