OCL engaged in the production and marketing of cement, refractories and sponge iron with its manufacturing facilities in Orissa, has declared its approved audited financial results for the last financial year ended 31st March, 2007 in its meeting held today. The Company has shown a quantum jump in its net profits besides overall improvement in its financials and operations.
Whilst, turnover for the year recorded an increase of 33% at Rs. 929.40 crores, the profit after tax recorded an increase of 105% at Rs. 77.52 crores during the financial year 2006-07 as compared to Rs. 37.79 crores in the previous year. The production of cement during the year was 18.74 lakhs tonne as against 15.83 lakhs tonne in the previous year. The increase in the quantities of cement sold during the year coupled with better sales realization has helped towards better results.
The refractory and sponge iron operations during the year were virtually at the expected levels and have shown marginal decline in the net profits owing to stiff competition and increase in the cost of various inputs in particular the cost of basic raw material.
Encouraged by the continuous growth in the demand of cement especially in the eastern region, the Company had decided to increase its installed capacity of cement unit from 2.0 million tonne per annum (MTPA) to 3.8 MTPA in two parts at a total capital expenditure of Rs. 780 crores. The Part I involves setting up of a green field-grinding unit near Cuttack to produce cement of 0.90 MTPA. The Part II of capacity addition involves setting up of a second unit of clinkerisation along with existing facilities at Rajgangpur works with the capacity of 1.3 MTPA of clinker. Whilst, the grinding unit is expected to be commissioned in 2007-08, the clinkerisation unit is scheduled to be operational in 2008-09.
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