Orient Cement posts Q2 net loss of Rs 29.4 crore

Orient Cement posts Q2 net loss of Rs 29.4 crore

Orient Cement has reported a standalonenet loss of Rs 29.4 crore for the quarter ended September 30, 2016, against anet profit of Rs 28 crore in the year-ago period. Total standalone income ofthe company rose by 11 per cent to Rs 445 crore in April-September quarter thisfiscal from Rs 400 crore during the same quarter in 2015-16. Total expenses ofthe CK Birla Group were higher at Rs 460 crore against Rs 374 crore during theperiod under review.

Orient Cement Managing Director and CEODeepak Khetrapal said that volumes continue to be higher across all marketsversus the corresponding quarter last year due to utilisation of the firm's newcapacity at Chittapur. "The increased volumes to Karnataka and Andhra Pradeshenabled by the new plant have improved our geographic spread. The quarter endedSeptember 30 has expectedly seen seasonal lower volumes due to an intense andextended monsoon affecting construction activities," he added.

The price environment in core marketshas been stable to better, particularly showing signs of improvement in AndhraPradesh, Telangana and West Maharashtra towards the end of this quarter,Khetrapal said. The cement industry expects demand to improve in theOctober-December quarter due to favourable rainfall, which is expected toprovide a strong boost to demand, he added. Various government projects for low-costhousing, roads, irrigation, Metros as well as new initiatives like Smart Citiesand Swachh Bharat are also expected to resume in full swing and result inimproved demand for cement in Telangana, AP and Maharashtra.

Related Stories

Indian Cement Review