Oriental Carbon and Chemicals (OCCL) Q4 10/11 earnings summary

Executive summary

• FY11 net sales rose 26% to Rs 15,823.79 lakh; PBT increased to Rs 4,362.74 lakh and PAT to Rs 3,737.93 lakh.

• Insoluble Sulphur growth was constrained by capacity; a 11,000 Mtpa Mundra expansion was underway, with both phases expected to be sold into demand.

Financial highlights

• Net sales were Rs 15,823.79 lakh vs Rs 12,570.64 lakh; total income reached Rs 16,734.71 lakh vs Rs 12,371.77 lakh.

• PBT was Rs 4,362.74 lakh vs Rs 3,427.21 lakh; PAT was Rs 3,737.93 lakh vs Rs 2,945.69 lakh.

• Profit before interest, depreciation and tax was Rs 5,180.16 lakh vs Rs 4,137.99 lakh.

• Cash from operations was Rs 2,673.60 lakh; net cash used in investing was Rs 5,994.23 lakh, including project and fixed-asset spending.

Outlook and guidance

• Mundra Phase 1, adding 5,500 Mtpa, was expected to start in June 2011; output was sold out subject to technical approvals.

• Phase 2, also 5,500 Mtpa, was advanced, with major machinery ordered and commissioning targeted for Q4 FY12.

• Sulphuric Acid margins were expected under pressure in FY12 due to low first-quarter offtake; Oleum demand weakened amid regional capacity additions.