Orientbell Tiles Posts Profit Of Rs 8.68 Crore In Q2 FY22

Orientbell Tiles (OBL) has reported a 161 per cent increase in its net consolidated profit during the quarter ended September 2021. Its profit after tax (PAT) stood at Rs 8.68 crore in Q2 FY22 as against Rs 3.32 crore it recorded in the corresponding quarter previous fiscal. The company's net consolidated total income stood at Rs 168.33 crore in Q2 FY22, a growth of 29 per cent from Rs 130.88 crore it registered in the similar quarter last year. It has the capacity of about 30 million sq meters per annum. Net debt continues to stay below zero at Rs (-) 15.4 crore as on September 30, 2021. OBL's board has approved two new capital expenditure proposals: conversion of Dora plant (Bharuch district, Gujarat) from ceramic floor to vitrified floor which is expected to be completed by Q1FY23 and upgradation of Line-1 at Hoskote plant (Bengaluru) which is expected to be completed by Q3FY23. The current capacity of the Dora plant is 2.4 MSM per annum and that of Line-1 at the Hoskote plant is 1.9 MSM per annum. Total capex involved for these two projects is about Rs 42 crore and post the completion of these, the company expects incremental volume potential of 3 MSM per annum. With an aim to consolidate our position further in the bigger and high growth markets of South & West where traditionally Orientbell has had a lesser share of the pie, we believe the time is ripe for us to commit more investments to revamp our existing plants at Dora and Hoskote. The upgraded plants would also be more efficient thus helping us improve margins. With this, the total investments announced so far during the last one year is about Rs 68 crore and we expect to unlock incremental 5.5 MSM per annum volume potential from our own manufacturing locations post the completion of these capex. We continue to remain cash positive and most of this capex should be funded via our own internal accruals," said Aditya Gupta, CEO, Orientbell Tiles.