Oriental Carbon and Chemicals (OCCL) Q4 15/16 earnings summary

Executive summary

• FY16 standalone PAT rose to Rs 5,298.73 lakh from Rs 5,131.60 lakh; net sales fell to Rs 27,471.72 lakh as lower input costs and weak global demand reduced realizations and export offtake.

• Stronger margins and cost controls supported EBITDA of Rs 8,676.12 lakh, up from Rs 8,414.21 lakh; domestic demand for Insoluble Sulphur grew at a double-digit rate.

Financial highlights

• Standalone total revenue was Rs 28,040.36 lakh vs Rs 29,543.48 lakh; PBT rose to Rs 6,476.32 lakh from Rs 6,296.21 lakh and PAT to Rs 5,298.73 lakh from Rs 5,131.60 lakh.

• Standalone net revenue from operations was Rs 27,471.72 lakh vs Rs 28,257.35 lakh; EBITDA was Rs 8,676.12 lakh vs Rs 8,414.21 lakh.

• Consolidated net revenue from operations was Rs 33,812.69 lakh vs Rs 34,666.62 lakh; profit attributable to the holding entity increased to Rs 4,952.18 lakh from Rs 4,829.08 lakh.

• Interim dividend of Rs 3/share and proposed final dividend of Rs 5.50/share; total dividend was 85% of face value, including proposed final dividend.

Outlook and guidance

• Insoluble Sulphur demand growth forecast at 2–3% internationally and double digits domestically; another outlook passage projects global growth of 3–4%, with lower growth expected in China.

• Phase 1 of the Mundra Insoluble Sulphur expansion was scheduled for commissioning in April 2017; additional volumes were targeted for American and Chinese markets.

• Sulphuric Acid demand was expected to improve with anticipated good monsoon conditions and fertilizer production.