Oriental Carbon and Chemicals (OCCL) Q4 16/17 earnings summary

Executive summary

• FY2016-17 standalone net revenue rose to Rs 29,745.16 lakh from Rs 27,471.72 lakh; PAT was Rs 5,343.23 lakh versus Rs 5,298.73 lakh.

• Insoluble Sulphur sales grew about 9%, supported by Mundra’s first expansion phase, commissioned in December 2016.

Financial highlights

• Standalone revenue from operations was Rs 29,745.16 lakh, up from Rs 27,471.72 lakh; total revenue was Rs 30,405.12 lakh versus Rs 28,040.36 lakh.

• EBITDA before finance costs, depreciation and tax was Rs 9,387.29 lakh versus Rs 8,676.12 lakh; PBT was Rs 7,358.33 lakh versus Rs 6,476.32 lakh.

• PAT was Rs 5,343.23 lakh versus Rs 5,298.73 lakh; EPS was Rs 51.90 versus Rs 51.46.

• FY2016-17 PAT included a deferred tax credit of Rs 791.72 lakh, attributed to the new Mundra capacity.

Outlook and guidance

• Global Insoluble Sulphur demand growth forecast at 3–4% annually; domestic demand expected to grow at double-digit rates.

• Phase II of Mundra Insoluble Sulphur expansion was under way, with commissioning expected in Q2 FY2018-19.

• China and the US were identified as growth markets; new tyre-customer approvals and Ultra High Performance Tyres were expected to support demand.