Orient Cement in red; posts Q2 net loss of Rs 29.4 cr

Orient Cement today reported a standalone net loss of Rs 29.4 crore for the quarter ended September 30, 2016, against a net profit of Rs 28 crore in the year-ago period.
Total standalone income of the company rose by 11 per cent to Rs 445 crore in April-September quarter this fiscal from Rs 400 crore during the same quarter in 2015-16.
Total expenses of the CK Birla Group was higher at Rs 460 crore against Rs 374 crore during the period under review.
Orient Cement Managing Director and CEO Deepak Khetrapal said that volumes continue to be higher across all markets versus the corresponding quarter last year due to utilisation of the firm's new capacity at Chittapur.

"The increased volumes to Karnataka and Andhra Pradesh enabled by the new plant have improved our geographic spread. The quarter ended September 30 has expectedly seen seasonal lower volumes due to an intense and extended monsoon affecting construction activities," he added.
The price environment in core markets has been stable to better, particularly showing signs of improvement in Andhra Pradesh, Telangana and West Maharashtra towards the end of this quarter, Khetrapal said.

The cement Industry expects demand to improve in the October-December quarter due to favourable rainfall, which is expected to provide a strong boost to demand, he added.
Various government projects for low cost housing, roads, irrigation, metros as well as new initiatives like Smart Cities and Swachh Bharat are also expected to resume in full swing and result in improved demand for cement in Telangana, AP and Maharashtra.

The construction of the new capital of Andhra Pradesh at Amravathi is also expected to contribute to higher cement appetite in Southern India, Khetrapal said.