Oriental Carbon and Chemicals (OCCL) Q4 24/25 earnings summary

Executive summary

• Q4 FY24 revenue grew 4% year-over-year to Rs. 108 crore; PAT up 15% to Rs. 13 crore, despite global chemical sector headwinds and inventory destocking.

• FY24 revenue declined 14% year-over-year due to lower sales prices from reduced input and freight costs, but margins were maintained.

• Approval received from NCLT for demerger of chemical business; Scheme of Arrangement completed, transferring business to OCCL Limited effective July 1, 2024.

• Company reduced long-term debt by Rs. 35 crore in FY24, emphasizing sustainable growth and capital efficiency.

• Board approved appointments of secretarial and cost auditors, and amendment to Memorandum of Association to include power generation activities.

Financial highlights

• Q4 FY24 total income: Rs. 108 crores, up 4% year-over-year; Q4 FY24 PAT: Rs. 13 crores, up 15% year-over-year.

• FY24 total income: Rs. 401 crores, down 14% year-over-year; PAT: Rs. 43 crores, down 2% year-over-year.

• FY25 total income: Rs. 308.8 crores; Q4 FY25 income: Rs. 108.5 crores, up 12% sequentially.

• FY25 EBITDA: Rs. 55 crores (margin 17.8%); PAT: Rs. 21.4 crores (margin 6.9%).

• EPS for FY24: Standalone Rs. 42.99, Consolidated Rs. 46.19; FY25 EPS: Rs. 4.29 per share (face value Rs. 2).

Outlook and guidance

• Margin per ton expected to be lower in FY25 due to global overcapacity and dumping, with a 4-5% reduction in margins anticipated.

• Management expects global insoluble sulphur market to grow 2-3% near term, with domestic tyre industry projected at 6-7% CAGR.

• Demand-supply imbalance in insoluble sulfur expected to persist for at least two to three years, keeping pricing under pressure.

• Company anticipates improved pricing and demand as market stabilizes, supported by anti-dumping duties and cost optimization.

• Growth in India projected at 8-10% for insoluble sulfur, higher than global average.