Orient Bell PAT skyrockets 931% in Q3; Invests to add 0.7 MSM p.a. capacity at Sikandrabad

OBL's Board has approved modernization of an existing wall tile plant at Sikandrabad (Bulandshahr district, UP).

Jan 29, 2021 12:01 IST India Infoline News Service

Orient Bell Limited, a leading manufacturer of ceramic and vitrified tiles with a capacity of ~30 million square meteRsper annum, has reported results for quarter and nine month ended December 31, 2020.

Key Financial Highlights:
  • Revenue saw a 21% growth yoy basis while EBITDA grew by 63% yoy
  • Topline growth +21 % yoyin Q3FY21 led by Channel Expansion, New Products, Displays & Digital tools
  • EBITDA margin improved further to l 0.7% in Q3FY2 l aided by higher vQl?m?.s,lower fuel costs & cost control.
  • Excluding the impact of one-time adoption of IND AS 116 "Lease Accounting" in Q3F-Y20, on a Lf-L basis EBIDTA margin improved by 4% - from 6.7% in Q3FY20 to 10.7% in Q3FY21.
  • On a consolidated basis (including OB L's share of profit from Associates), PAT for Q3.FY21 at Rs7.5crs vs Rs0.7cr in Q3FY20
  • Strong focus on working capital management continues - Cash Conversion Cycle reduced to 13 days on 31-Dec-2020 from 53 days on 31-Mar-2020
  • Net debt below ZERO at Rs(-) 2.5cr as on December 31, 2020
Operational highlights:
  • 29 Orientbell Tile Boutiques (OBTBs) added during Q3FY21, total number of active OBTB's as on 31-Dec-20 increased to 217
  • Marketing investments increased further during Q3FY21 : +2% of topline (-1 .8X of Q2FY21 spend)
  • Revenue from vitrified tiles too improved to 41 % vs. 40% LY
  • Innovative Social media campaigns with high reach - #KaroRishtonKoRenovate AND #ByeBye2020 
  • More then 350 SKUs launched YTDFY2 l across existing & New Product categories.
OBL's Board has approved modernization of an existing wall tile plant at Sikandrabad (Bulandshahr district, UP). The current capacity of this plant is 2. 1 MSM p.o. and post modernization the capacity will increase to 2.8 MSM p.o, The modernization will also reduce fuel consumption.

The modernization will involve a capex of under Rs1 0crs and the process will be completed by mid FY22.

"We continue to witness growing demand across oil our key markets. The renewed focus on home improvement and oroiec! completion is driving consumption. We expect further improvement in construction activities aided by softer home loon rotes and government policies.

Our investments in Channel Expansion, Branding and New Products over the lost 2 yeaRsl'Yns strengthened our competitiveness to meet this demand. To cater to the growing demand, we restarted operations of the floor plant (MF-2, at Sikondrabod) in Dec-20 and ore now coming up with a second cop'exfor the Wall plant (MP-1 ). The CAPEX will be financed from internal cash accruals." Aditya Gupta, CEO, Orientbell Tiles commented on the occasion.

The company was trading 3.75% higher at Rs233.70 apiece on the BSE at around 12:53 PM on Friday.

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