Orient Paper and Industries Ltd (OPIL) today reported 73 per cent jump in net profit at Rs 59.37 crore for the quarter ended June 30,and approved a proposal to demerge cement business into Orient Cement Ltd. The OPIL,engaged in cement,paper and electrical businesses,had reported a net profit of Rs 34.24 crore in the quarter ended June 30,2010. The company's total income for the quarter went up 21 per cent to Rs 546.96 crore,compared to Rs 449.22 crore in the year-ago period. "We performed well in improving our revenues and profitability,in spite of the challenging economic climate and overhaul done in our paper business," OPIL Managing Director M L Pachisia told reporters here. The board of directors of the company also approved a proposal to demerge the cement business of OPIL into Orient Cement Ltd (Orient Cement). "Orient Paper and Industries,in its effort to enhance shareholder value,has undertaken this restructuring exercise. We have ambitious plans for the cement business and the demerger will provide an opportunity to shareholders to directly participate in the pure-play cement company. The restructuring is expected to unlock value for shareholders," OPIL Chairman C K Birla said. OPIL shareholders will get one new equity share of Orient Cement for each equity share they hold in OPIL,in addition to their existing shares. Orient Cement is proposed to be listed on the Bombay Stock Exchange and National Stock Exchange,where OPIL is currently listed.
