Rainbow Papers sales zooms 11.77% to Rs 68 cr

Rainbow Papers Ltd (BSE CODE: 523523) a leading paper and paper products manufacturing company., Rainbow Papers Ltd has posted a growth of 11.77 % in revenues and 6.17 % in net profits for the quarter ended December 31, 2009 over the corresponding figures of the previous year. The revenue for the quarter stand at Rs. 67.98 crore and the profits have zoomed to Rs. 5.42 crore. (After adjusting P.Y. depreciation on account of change of method)* 

For the nine months ending December 31, the revenue stands at Rs. 175.83 crore and the profits at Rs. 15.77 crore. 

The earnings per share (EPS) works out to Rs. 7.52 for third quarter ended 31st December 2009, as compared to Rs. 1.24 in corresponding quarter of previous year. 

Commenting on the financial performance of the company, Ajay Goenka, Managing Director of Rainbow Papers Ltd said: "We are at the cusp of an exciting growth phase at Rainbow Papers Ltd. I am humbled at the confidence reposed on us by the investors, shareholders, bankers and customers in sharing our vision and competencies. With the financial closure of our expansion program, we are on course to setup an integrated Paper Manufacturing Unit of 3,05,000 TPA that would be one of the largest such units at a single location. As in the past, we would continue to pride ourselves on being one of the most cost-efficient and environmentally conscious players in the business." 

Key Highlights 

· Q3 Sales up by 11.77% to Rs.67.98 crore
· Q3 Profits up to Rs.5.42 crore*
· The earnings per share (EPS) works out to Rs. 7.52
· Q3 EBIDTA margins at 25.26 %
· Financial closure of Rs. 327 crore expansion project
· Power plant capacity expansion to 45 MW 

The company has successfully raised $27 million (Rs. 121 crore) through a GDR issue recently. It has also raised a debt of Rs. 200 crore through a consortium of banks to finance its Rs. 327 crore expansion program. After the expansion, Rainbow Papers would increase the capacity to 3,05,000 TPA. According to the company, the current expansion is one of the most – cost effective capacity expansions in the paper industry. The capacity expansion program also includes adding a 30 MW, captive, coal based- Power Plant to their existing captive capacity of 15MW. 

With the completion of the proposed plant in the next12 months, the company will emerge as one of the largest manufacturers of paper by recycling waste paper. The manufacturing plant will be multi-product, multi-feed and capable of working on paper pulp and waste paper. The company is confident that a superior quality of paper produced will ensure better marketing share and higher price realization. 

In recognition of its outstanding export performance in respect of paper and paper board for the year 2008-09 the company has been awarded Special Award sponsored by CAPEXIL, Ministry of Commerce & Industry, Govt. of India. 

The company is accredited with ISO 9001, 14001 & OHSAS 18001.