Oriental Carbon and Chemicals (OCCL) Q4 11/12 earnings summary

Executive summary

• FY12 net revenue from operations rose 37% YoY to Rs 21,781.92 lakh; PBT increased to Rs 4,449.79 lakh, while PAT fell to Rs 3,145.76 lakh as the EOU tax holiday expired and tax expense increased.

• Insoluble Sulphur output reached 17,392 MT, including 2,983 MT from Mundra Phase I; Phase II added 5,500 MT capacity and began commercial production in May 2012.

• The Board recommended a final dividend of 30% (Rs 3 per share), absorbing Rs 358.99 lakh including dividend tax.

Financial highlights

• Net revenue from operations was Rs 21,781.92 lakh vs Rs 15,900.20 lakh; total revenue was Rs 22,200.19 lakh vs Rs 16,254.23 lakh.

• PBT was Rs 4,449.79 lakh vs Rs 4,361.16 lakh; PAT was Rs 3,145.76 lakh vs Rs 3,737.93 lakh.

• Profit before finance cost, depreciation and tax reached Rs 5,993.14 lakh vs Rs 5,132.07 lakh; finance cost rose to Rs 831.22 lakh from Rs 268.77 lakh.

• Insoluble Sulphur revenue was Rs 20,554.95 lakh vs Rs 14,687.36 lakh; Sulphuric Acid and Oleum revenue was Rs 1,800.67 lakh vs Rs 1,731.83 lakh.

Outlook and guidance

• Mundra Phase II, with 5,500 MT annual capacity, was completed and commercial production declared in May 2012; land at Mundra could accommodate another 11,000 MTpa plant.

• Insoluble Sulphur demand was expected to benefit from Indian tyre capacity additions, rising radial tyre production and growing domestic demand; long-term supply contracts were expected to mitigate slowdown effects.

• Sulphuric Acid demand was expected to remain near current levels; steam use in Insoluble Sulphur plants was expected to support division profitability.