Orient Bell Limited , a prominent player in the ceramic tile industry, has reported a significant change in its promoter shareholding. Mahendra K. Daga, a key promoter of the company, has increased his stake through recent open market purchases.

Shareholding Increase

According to a disclosure made under SEBI regulations for substantial acquisition of shares, Mahendra K. Daga has acquired an additional 5,669 shares of Orient Bell Limited. This acquisition was executed through two separate transactions in the open market.

Updated Promoter Holding

Following these purchases, Mahendra K. Daga's total shareholding in Orient Bell Limited now stands at 30,24,752 shares. This represents 20.62% of the company's total voting rights, underlining his significant influence in the organization.

Regulatory Compliance

The disclosure of this transaction aligns with the Securities and Exchange Board of India (SEBI) regulations, which require prompt reporting of substantial changes in shareholding patterns. This transparency ensures that all stakeholders are kept informed about significant movements in ownership structure.

Company Profile

Orient Bell Limited is recognized for its presence in the ceramic tile manufacturing sector. The company offers a wide range of tiles for various applications, catering to both residential and commercial markets.

Orient Bell Limited , a leading tile manufacturer, reported a 3% year-on-year decline in net sales for the first quarter, with revenues reaching ₹142.50 crores compared to ₹147.30 crores in the same period last year. The company maintained its sales volumes but faced challenges due to lower average selling prices, attributed to increased trade discounting and heightened competition in the market.

Financial Highlights

Despite the revenue dip, Orient Bell saw improvements in other financial metrics:

• Gross margins improved by 50 basis points to 36.50%
• Consolidated EBITDA stood at ₹5.60 crores, with margins improving by 60 basis points
• Net debt position remained stable at ₹9.50 crores
• Cash conversion cycle improved to 33 days from 35 days in the previous year's corresponding quarter

Product Mix and Market Dynamics

The company reported a shift in its product mix:

CEO Aditya Gupta noted that demand remained subdued, with exports showing some improvement in May and June. However, the three-month moving average for exports still remains below the previous fiscal year's levels. The challenging market conditions have led to approximately 39 units in Morbi shutting down in the last three months.

Strategic Initiatives

Orient Bell continues to focus on enhancing customer experience and brand building:

• Launched an AI-based visualization tool for dealers, which has crossed one million views
• Continued TV campaigns covering core markets in North, East, and Tamil Nadu
• Restructured Orient Bell Tile Boutiques operations to drive display upgradation and influencer services across 385 boutiques
• Implemented a flatter sales structure with greater on-ground empowerment

Industry Outlook

The tile industry faces several challenges, including subdued demand, heightened competition, and overcapacity. However, Orient Bell remains optimistic about future prospects:

• Capacity additions in Morbi have slowed down significantly
• Indian tiles are technically competitive and cost-effective compared to global counterparts
• The company is well-positioned to grow margins and revenues once market conditions improve

Management Changes

Orient Bell welcomed Anuj Arora as its new Chief Financial Officer. Arora, a Chartered Accountant with over 23 years of diverse industry experience, will be based at the company's corporate office in Delhi.

As Orient Bell navigates through the current market challenges, it remains focused on cost control, brand building, and enhancing distribution networks to drive growth and improve market share in the coming quarters.