Oriental Carbon and Chemicals (OCCL) Q4 17/18 earnings summary

Executive summary

• FY18 standalone net sales rose to Rs. 33,202.51 lakh from Rs. 31,057.99 lakh; PAT reached Rs. 5,675.01 lakh, while margins remained stable.

• Insoluble Sulphur sales grew ~10% after the third Mundra line began operating; Phase II capacity expansion was progressing on schedule and within budget.

• Consolidated revenue was Rs. 37,376.09 lakh and PAT was Rs. 5,689.78 lakh; the subsidiary returned to profit after a prior-year loss.

Financial highlights

• Standalone revenue from operations was Rs. 33,202.51 lakh vs Rs. 31,057.99 lakh; total revenue was Rs. 33,757.04 lakh vs Rs. 31,736.10 lakh.

• Standalone PBT increased to Rs. 7,963.31 lakh from Rs. 7,471.71 lakh; PAT rose to Rs. 5,675.01 lakh from Rs. 5,417.37 lakh.

• Consolidated revenue from operations was Rs. 37,376.09 lakh vs Rs. 34,910.41 lakh; consolidated PAT was Rs. 5,689.78 lakh vs Rs. 4,829.78 lakh.

• Standalone operating cash flow was Rs. 8,659.26 lakh vs Rs. 7,713.49 lakh; year-end cash and cash equivalents were Rs. 962.21 lakh.

Outlook and guidance

• Phase II Insoluble Sulphur expansion at Mundra was expected to be commissioned on schedule; new capacity was targeted to operate at optimum levels by the end of FY19.

• China and US market entry had received a positive response; these geographies were identified as growth drivers for new capacity.

• Domestic Insoluble Sulphur demand was expected to grow at double-digit rates; global demand growth was estimated at 3–4% annually.

• Sulphuric Acid demand was expected to benefit from a normal monsoon and stronger fertilizer production.