New Delhi: Orient Bell Ltd. today announced its unaudited financial results for the quarter ending September 30, 2021. Revenue Growth in the quarter was +29% y-o-y led by the renewed focus on Channel Expansion, New Products, Displays & Digital tools.
EBITDA margin improved further to 9.5% in Q2FY22 as compared to 8.1% in Q2FY21 despite significant and consistent cost escalation on all fronts - raw material, gas, power, and logistics. On a consolidated basis (including OBL’s share of profit from Associates), PAT for Q2FY22 at Rs. 8.7 Crores vs Rs. 3.3 Crore in Q2FY21. (Refer https://www.orientbell.com/investor for detailed results)
With a continuous strong focus on Working Capital Management, Cash Conversion Cycle continues to be under 20 days. The Net debt was below zero at Rs (-) 15.4 Crores as on 30-Sept-2021.
Q2FY22 saw an addition of 11 new Orient Bell Tile Boutiques (OBTB’s), with an increase in the total number of active OBTBs to 249 as on 30 September 2021. In addition to this, Marketing investments were increased further during Q1FY22 - more than doubled vs Q2FY21, also increased sequentially by ~90%. The revenue from vitrified tiles too improved to 42% vs 39% last year. OBL launched More than ~180 SKUs launched during Q2FY22 across existing & New Product categories. In addition to this, OBL identified and filled up profitable gaps by launching 800x1600, Hi Depth Elevation and Pavers.
OBL also added/ revived 128 CP’s under the Ashwamedha Project 3.0 during Q2FY22. Orientbell Tiles continued launching authentic digital campaigns with their #ActuallyScratchFree campaign for Forever Tiles. Channel Partners & Architects enthusiastically participated in the activation experiencing the #ActuallyScratchFree tiles. (see video https://www.youtube.com/watch?v=7fkbAJmA7_8 )
Orientbell Tiles Continues to Invest in GROWTH & EFFICIENCY
New Capex Projects Announced to Aid “Scale up” of volumes in South & West – incremental volume potential of 3 MSM p.a.
In addition to the 3 CAPEX projects approved during the last 1 year to strengthen our own manufacturing facilities at the Sikandrabad plant (Bulandshahar district, UP), OBL’s Board has approved 2 new CAPEX proposals with a focus on the bigger and high growth markets of South & West.
- Conversion of Dora plant (Bharuch district, Gujarat) from Ceramic Floor to Vitrified Floor – expected to be completed by Q1FY23.
- Upgradation of Line-1 at Hoskote plant (Bengaluru district, Karnataka) – expected to be completed by Q3FY23.
The current capacity of the Dora plant is 2.4 MSM p.a. and that of Line-1 at the Hoskote plant is 1.9 MSM p.a. Total Capex Involved for these 2 projects is ~Rs. 42 Crores and post the completion of these, the company expects incremental volume potential of 3 MSM p.a.
“We continue to witness good demand across markets.
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 CAPEX would not only help us improve scale but would also ensure that we are future-ready with better high margin product offerings. The upgraded plants would also be more efficient thus helping us improve margins.
With this, the total investments announced so far during the last 1 year is ~Rs. 68 crores and we expect to unlock incremental 5.5 MSM p.a. 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” Aditya Gupta, CEO, Orientbell Tiles commented on the occasion.
About Orient Bell Ltd:
Orientbell Tiles is a leading brand and manufacturer of ceramic & vitrified tiles with over 4 decades of serving customers across India. The company has an annual capacity of 30 mn. sq. meters, distributed across 3 plants, Sikandrabad, Hoskote and Dora and 2 trading JVs in Morbi. The company is ISO 9001, ISO 14001 and OHSAS 1800 certified with Zero Waste facilities. With over 3,000+ designs and having a strong distribution channel of 2000+ channel partners, the company has a growing presence across major markets in India.