Oriental Carbon and Chemicals (OCCL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached Rs. 97 crores, EBITDA at Rs. 16 crores with a margin of 16.6%, and PAT at Rs. 5 crores, net margin 5.4%. Margins were impacted by high international freight costs.

• Demand environment remains challenging globally, but domestic demand is stable and expected to strengthen, supported by capex investments by tyre OEMs.

• The company is pursuing antidumping duties on insoluble sulphur imports from China and Japan, with proceedings at an advanced stage.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended Dec 31, 2024.

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

Financial highlights

• Q3 FY25 total income from operations was Rs. 96.5 crores; EBITDA Rs. 16.0 crores (16.6% margin); EBIT Rs. 9.1 crores (9.4% margin); PAT Rs. 5.2 crores (5.4% margin); EPS at 1.1.

• Standalone Q3 FY25 revenue from operations: Rs 919.89 lakhs; net profit from continuing operations: Rs 150.45 lakhs.

• Consolidated Q3 FY25 revenue from operations: Rs 2,964.94 lakhs; net profit from continuing operations: Rs 220.25 lakhs.

• Exceptional loss of Rs 37,494.57 lakhs due to demerger, resulting in a significant net loss for the nine months ended Dec 31, 2024.

• Discontinued operations (demerged chemicals business) contributed Rs 538.74 lakhs profit in Q3 FY25 (standalone).

Outlook and guidance

• Domestic tyre industry expected to grow at 5.5% p.a., with robust domestic demand and emphasis on tyre exports offsetting global slowdown.

• Confident in navigating the evolving business environment, leveraging financial discipline and operational excellence.

• Post-demerger, the company focuses on investments as the only segment; group segments are investments and general engineering products.