Oriental Carbon and Chemicals (OCCL) Q2 24/25 earnings summary

Executive summary

• Revenue and sales volumes declined year-over-year due to lower export demand, but profits improved compared to the same period last year.

• Major demerger: Manufacturing business of Insoluble Sulphur & Chemicals transferred to OCCL Limited effective July 1, 2024.

• Financials restated for prior periods to reflect the demerger and changes in investment classification.

• The company is focusing on expanding market share in India and North America, aiming to increase global market share from 10% to 12%.

• Recognized for sustainability and workplace excellence, receiving the Great Place to Work award and ISO 20400-2017 certification.

Financial highlights

• Standalone Q2 FY24 revenue was ₹95.7 cr, down 22% year-over-year; H1 FY24 revenue was ₹206.1 cr, down 21%.

• Consolidated Q2 FY24 revenue was ₹112.0 cr, down 21% year-over-year; H1 FY24 revenue was ₹238.6 cr, down 20%.

• Consolidated revenue from continuing operations for Q2 FY25: ₹3,211.13 lakhs, up from ₹2,005.15 lakhs in Q2 FY24.

• Consolidated profit after tax from continuing operations for Q2 FY25: ₹326.66 lakhs, up from ₹91.50 lakhs in Q2 FY24.

• Exceptional loss of ₹37,494.57 lakhs recognized in standalone results due to demerger.

Outlook and guidance

• Anticipates growth in domestic Insoluble Sulphur demand driven by the automotive sector, including electric vehicles and logistics.

• Post-demerger, the company focuses on investments and general engineering products as core segments.

• Plans to expand into new geographies and acquire new customers, with a focus on increasing revenue share in India and globally.