The Hindu Business Line : Orient Paper Q2 turnover up 34 pc

Orient Paper, part of the GP-CK Birla group, has reported significant improvements in its turnover as well as profitability for the quarter and half-year ending September 30, 2006.

The company's turnover for the quarter has increased by 34 per cent to Rs 264.81 crore from Rs 198.2 crore for the same period last year.

For the half-year period, the company has recorded a growth of 29 per cent in its turnover to Rs 564.58 crore (Rs 436.85 crore).

The company's cement division achieved a 35 per cent growth in sales during the quarter, which increased to 5.7 lakh tonnes.

For the half-year period also, cement sales increased to 11.48 lakh tonnes (10.15 lakh tonnes).

The fan division of the company has also achieved a growth of 25 per cent in its top-line, with substantial increase in volumes in both the domestic and export markets.

Production at the company's paper plant at Amlai was shut down for a period of 33 days during the quarter for a scheduled long-term (five-yearly) major overhauling and maintenance.

Consequently, the paper division's performance for the quarter was affected because of lower production.

Despite the shutting down of the paper plant, the company has achieved a jump in its net profit before tax for the quarter to Rs 30.69 crore from Rs 1.34 crore last year.

For the half-year period also, the company's net profit has zoomed to Rs 69.83 crore from Rs 5.74 crore for the same period last year.

EPS for the half-year period has also increased to Rs 30.29, a growth of 974 per cent.

It will be recalled that the company had recently announced plans to expand its cement capacity further by 1 million tonnes and its tissue paper capacity by 20,000 tonnes.

The company had also announced plans to raise Rs 175 crore through issuance of equity on rights basis.

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