Orient Bell Ltd has announced its unaudited financial results for the quarter ending December 31, 2020. Revenue growth in the quarter was 21 percent y-o-y led by the renewed focus on new products, displays, and channel engagements compared to 6 percent y-o-y of Q2FY21 spend.
EBITDA margin improved further to 10.7 percent in Q3FY21 aided by higher volumes, lower fuel costs, and cost control excluding the impact of one-time adoption of IND AS 116” Lease Accounting” in Q3FY20, on L-f-L basis EBITDA margin improved from 6.7 percent in Q3FY20 to 10.7 percent in Q3FY21.
On a consolidated basis (including OBL’s share of profit from Associates), PAT for Q3FY21 at Rs 7.5 crore vs Rs 0.7 crore in Q3FY20. With a continued strong focus on working capital management, cash conversion cycle was reduced to 13 days on December 31, 2020 from 53 days on March 31, 2020. The net debt was below zero as on December 31, 2020.
Q3FY21 saw an addition of 29 new Orient Bell Tile Boutiques (OBTB’s), with an increase in the total number of active OBTBs to 217 as on December 31, 2020. In addition to this, marketing investments were increased further during Q3FY21: 2 percent of the topline, and the revenue from vitrified tiles too improved to 41 percent vs 40 percent last year. OBL launched more than 350+ SKUs; launched YTDFY21 across existing and new product categories.
As part of the board meeting, OBL’s Board has approved the modernization of an existing wall tile plant at Sikandrabad, Bulandshahr district, UP. The current capacity of this plant is 2.1 MSM p.a. and post-modernization the capacity will increase to 2.8 MSM p.a. The modernization will also reduce fuel consumption.
Aditya Gupta, CEO, Orientbell Tiles, said, "The modernization will involve a CAPEX of under Rs 10 crore and the process will be completed by mid FY22. The CAPEX will be financed from internal cash accruals."