Oriental Carbon and Chemicals (OCCL) Q4 19/20 earnings summary

Executive summary

• FY20 was affected by economic slowdown and COVID-19 disruption; operating revenue fell 11% YoY and Insoluble Sulphur sales declined 9%, while margins remained stable.

• Operations restarted in phases after lockdowns; management expected a slow demand recovery and forecast FY21 turnover down 25–30% and PBT down ~50% YoY.

Financial highlights

• Standalone operating revenue was ₹34,347.90 lakh vs ₹38,763.86 lakh; total revenue was ₹35,304.48 lakh vs ₹39,703.98 lakh.

• Standalone EBITDA was ₹10,851 lakh vs ₹12,941 lakh; PBT was ₹7,930 lakh vs ₹10,257.48 lakh; PAT was ₹7,150.55 lakh vs ₹7,374.14 lakh.

• Standalone EPS was ₹71.58 vs ₹72.09; consolidated revenue was ₹38,679.33 lakh vs ₹43,200.77 lakh and consolidated PAT was ₹7,476.85 lakh vs ₹7,652.08 lakh.

• Net worth increased to ₹46,797.96 lakh from ₹41,353.48 lakh; operating cash flow was ₹10,778.61 lakh vs ₹8,851.15 lakh.

Outlook and guidance

• FY21 turnover was expected to decline 25–30% and PBT-level profitability about 50% vs FY20; demand recovery was expected to be gradual, with potential revival later in the year if conditions improved.

• Dharuhera Phase 1 expansion commissioning was delayed to Q1 FY22 from Q3 FY21 due to suspended civil work and labor shortages; no significant cost impact was anticipated at the time.

• Demand was reported to be slowly returning, with expectations for better performance each quarter of FY21.