Oriental Carbon and Chemicals (OCCL) Q4 12/13 earnings summary

Executive summary

• FY13 net sales rose 4% to Rs 22,544 lakh, while PBT fell to Rs 4,004 lakh and PAT to Rs 2,738 lakh.

• Insoluble Sulphur remained the core business; Phase II at Mundra began commercial production in May 2012, adding 5,500 MTpa capacity.

Financial highlights

• Net revenue was Rs 22,544.07 lakh vs Rs 21,781.92 lakh; total revenue was Rs 23,032.00 lakh vs Rs 22,200.19 lakh.

• EBITDA/PBIDT was Rs 6,242.57 lakh vs Rs 5,993.14 lakh; PBT was Rs 4,003.51 lakh vs Rs 4,449.79 lakh and PAT Rs 2,738.45 lakh vs Rs 3,145.76 lakh.

• Finance costs increased to Rs 1,277.65 lakh from Rs 831.22 lakh; depreciation and amortisation rose to Rs 961.41 lakh from Rs 712.13 lakh.

• Basic and diluted EPS was Rs 26.60 vs Rs 30.55; proposed final dividend was Rs 3/share, bringing the FY13 total dividend to 50%.

Outlook and guidance

• Insoluble Sulphur sales were expected to reach optimum levels in H2 FY14 through new geographic markets and customers, despite continuing sluggish tyre demand.

• Sulphuric Acid prices and Oleum prices could face pressure as increased by-product capacity at zinc and copper plants lifted regional supply.

• Sulphuric Acid plant debottlenecking was planned to generate additional steam for the Dharuhera Insoluble Sulphur plant.