Date:20/01/2007 URL: http://www.thehindubusinessline.com/2007/01/20/stories/2007012005860300.htm

Back BILT Q2 net rises 31.1 pc on strong demand

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To open four retail outlets next year

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New Delhi Jan. 19 Ballarpur Industries Ltd (BILT) on Friday reported an increase of 31.1 per cent in its net profit for the second quarter ended December 31, 2006, to Rs 62.15 crore from Rs 47.4 crore in the corresponding period last year.

The company also recorded a growth of 22.6 per cent in its second quarter net revenue to Rs 602.5 crore as compared to Rs 491.4 crore in the same period last year.

"The performance for the quarter is mainly on the back of strong demand as well as the price hikes we have effected during the period," said Mr R.R.Vederah, Managing Director, BILT.

Merger impacts

The company however made it clear that figures for the current quarter were not comparable with the corresponding quarter last year, as they include impact of the merger of APR Packaging Ltd and the restructuring of its power business.

The company's total paper production for the second quarter for fiscal 2007 also increased to 114,723 metric tonnes (mt) from 100,372 mt in the second quarter for fiscal 2006. Total paper sales during the quarter stood at 1,15,603 mt as against 99,466 mt in the corresponding quarter last year.

Demand strong

Mr Vederah said, "The company is expecting continued robust performance in the remaining quarters of the fiscal as demand continues to be strong. We are also planning another price hike on both coated and uncoated papers by 1.5 per cent to 2 per cent by March this year."

The company was planning an interim dividend payout for the half-year ended December and its Board would decide on the matter toward the end of the month, he added.

Ballarpur Industries is also planning to expand its branded stationery and related business. "We are seriously looking at this segment and have plans to expand as a retailer of consumer products like stationeries, tissues and copiers," Mr Vederah said. He said the company has decided to go on its own for the retail venture.