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Result Highlights:
Results for the quarter ended June 30, 2011
· Gross Sales are Rs. 109 crores for the quarter ended June 30, 2011;
· EBITDA is Rs. 21 crores for current year; EBITDA margin is 20%.
· PAT is Rs. 9.7 crores for the quarter ended June 30, 2011;
· Volume for Q1 FY 2012 is 34,417MT.
· Average Realization increases from Rs. 28.5 per Kg to Rs. 31.5 per Kg.
Mumbai, (August 8, 2011): Rainbow reported a strong current year performance with improved price realization and product mix. Our phase-1 expansion of 80,000 MTPA is yielding good result which is reflected in our performance.
Paper Industry in India:
Paper and paper industry are growing continuously at a very steady rate. The growth in the paper industry has mirrored the growth in GDP over the last few years.
India is one of the fastest growing markets for paper globally. Paper consumption in India is poised for a big leap forward in synchronization with growth drivers like GDP growth rate, urbanization & changing demographics, increasing literacy rate and government’s thrust on literacy, service sector thrust, increasing consumerism and awareness towards environment.
Paper is a fully recyclable commodity and with increased awareness will slowly replace plastic. Many states & cities in India have started the green drive and are working towards banning plastic and encouraging the use of paper bags.
Indian Paper Manufacturers Association is expecting demand for paper to grow by 57 percent to 14 million tons by 2015 from current demand of 8.8 million tonne.
As per RISI Resource Information Systems Inc., Recovered paper will gain more share of the world’s total fiber furnish over the next 15 years. Recovered paper consumption is forecasted to be about 400 million tons by 2025, compared with 206 million tons in 2009 and estimated 220 million tons in 2010.
Corporate Actions:
§ A fresh resolution for the preferential allotment has been passed by the Board of Directors in their meeting held on 20th July, 2011. This is in supersession of the earlier resolutions passed at the Extra Ordinary General Meeting held on April 20, 2011 and has been necessitated on account of pending approval of regulatory authorities. Based on the fresh resolution, the pricing for the preferential allotment has worked out to Rs. 61
Fresh resolution has been passed for:
– The issuance of 40,00,000 Equity Shares to Promoters / Promoter Group, on preferential basis at a price of Rs. 61 per share (including premium of Rs 59)
– The issuance of 60,00,000 warrants (convertible into 60,00,000 equity shares, within a period of 18 months from the date of allotment of warrants) on preferential basis at a price of Rs. 61 per share (including premium of Rs 59).
§ Post allotment of 40,00,000 Equity Shares, the shareholding of the Promoter/Promoter Group will increase to 32.84%.
§ Post the conversion of warrants into Equity Shares, the Promoter/Promoter Group shareholding would stand increase to 36.99% (Based on the current Capital Structure of the Company).
Expansion of 122,000MTPA
· The project implementation is progressing well. Completion expected in Q2 FY 2012.
· The new plant will be used to manufacture value added products like Thermal, Non-carbon, Glazed, Light weight paper, Coated & Crepe paper.
· Post commissioning, we will be the sixth largest paper producer in India with 305,000 TPA of capacity.
· Terms of Reference received for the 20 MW Power Plant. Completion expected in Q3 FY 2012.
Launch of Consumer Products
· The Company is making its entry in value added Consumer Products segment by making of Notebooks, Copier papers and Office Stationary under “Rainbow” brand.
· Capex outlay is Rs. 25 crores will be funded by internal accruals.
· The Company is planning to penetrate, through building distributors network, in the states of Gujarat, Rajasthan and Maharashtra initially.
· Branding exercise to commence from Q3 FY 2012.
Rainbow Papers today is one of the fastest growing corporations in the Indian Paper Industry using the eco-friendly process of recycling of waste paper. Rainbow manufactures over 186 varieties of paper with current capacity of 183,000 TPA. It has marked its presence in the global market and is currently exporting its products to various countries in the US, Middle East, South Africa, South East Asia and U.K. We offer a plethora of world class products ranging from Duplex to File Board, from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe, which has given us a good recognition amongst our users who thirst for better and new products. The Company, with its recent and forthcoming capacity expansions, will consolidate its standings as one of the leading Paper mfg. companies in the country.
For more information please visit www.rainbowpapers.com
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
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