Operating profit margin has jumped from 28.42% to 32.15%, leading to 40.04% rise in operating profit to Rs 38.09 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 26.43% to 30.75%. Employee cost decreased from 14.16% to 11.47%. Other expenses fell from 30.51% to 24.64%.

Other income fell 16.40% to Rs 2.65 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 51.52% to Rs 33.53 crore. PBIT of Chemicals segment rose 50.29% to Rs 31.69 crore (accounting for 94.50% of total PBIT). PBIT of General Engineering Products segment rose 76.24% to Rs 1.84 crore (accounting for 5.50% of total PBIT).

PBIT margin of Chemicals segment rose from 24.73% to 30.34%. PBIT margin of General Engineering Products segment rose from 10.00% to 13.80%. Overall PBIT margin rose from 23.12% to 28.46%.

Provision for interest fell 31.60% to Rs 1.45 crore. Provision for depreciation rose 14.10% to Rs 6.07 crore.

Profit before tax grew 44.88% to Rs 33.22 crore. The company reported nil EO income for the quarter compared to EO expense of Rs 1.76 crore in Q4FY20 towards a wage liability based on a labour court issued order. PBT after EO was up 57% to Rs 33.32 crore.

Provision for tax was expense of Rs 2.47 crore, compared to Rs 4.9 crore. Effective tax rate was 7.44% compared to 23.15%.

Net profit attributable to owners of the company increased 66.47% to Rs 27.75 crore.

Full year results analysis

Net sales (including other operating income) of Oriental Carbon & Chemicals has declined 3.34% to Rs 373.86 crore. Sales of Chemicals segment has gone down 3.19% to Rs 332.51 crore (accounting for 88.91% of total sales). Sales of General Engineering Products segment has gone down 4.37% to Rs 41.48 crore (accounting for 11.09% of total sales). Inter-segment sales rose Rs 0.07 crore to Rs 0.13 crore.

Operating profit margin has jumped from 27.09% to 31.13%, leading to 11.05% rise in operating profit to Rs 116.37 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.17% to 27.86%. Employee cost decreased from 14.26% to 14.23%. Other expenses fell from 29.93% to 26.89%.

Other income rose 19.47% to Rs 12.64 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 11.77% to Rs 99.47 crore. PBIT of Chemicals segment rose 14.28% to Rs 95.40 crore (accounting for 95.90% of total PBIT). PBIT of General Engineering Products segment fell 26.13% to Rs 4.07 crore (accounting for 4.10% of total PBIT).

PBIT margin of Chemicals segment rose from 24.30% to 28.69%. PBIT margin of General Engineering Products segment fell from 12.72% to 9.82%. Overall PBIT margin rose from 23.00% to 26.60%.

Provision for interest fell 31.66% to Rs 6.54 crore. Loan funds rose to Rs 160.02 crore as of 31 March 2021 from Rs 140.95 crore as of 31 March 2020. Inventories rose to Rs 47.39 crore as of 31 March 2021 from Rs 42.05 crore as of 31 March 2020. Sundry debtors were higher at Rs 80.61 crore as of 31 March 2021 compared to Rs 71.34 crore as of 31 March 2020. Cash and bank balance declined from Rs 142.75 crore as of 31 March 2020 to Rs 9.31 crore as of 31 March 2021. Investments rose to Rs 185.33 crore as of 31 March 2021 from Rs 17.40 crore as of 31 March 2020 .

Provision for depreciation rose 2.94% to Rs 22.07 crore. Fixed assets increased to Rs 455.29 crore as of 31 March 2021 from Rs 378.80 crore as of 31 March 2020. Intangible assets declined from Rs 0.59 crore to Rs 0.54 crore.

Profit before tax grew 19.01% to Rs 100.40 crore. The company reported nil EO income for FY21 compared to EO expense of Rs 1.76 crore in FY20. PBT after EO was up 22% to Rs 100.4 crore

Provision for tax was expense of Rs 17.41 crore, compared to Rs 7.83 crore. Effective tax rate was 17.34% compared to 9.48%.

Minority interest increased 144.79% to Rs 3.99 crore. Net profit attributable to owners of the company increased 8.01% to Rs 79.00 crore.

Promoters' stake was 51.76% as of 31 March 2021 ,compared to 51.69% as of 31 March 2020 .

Cash flow from operating activities decreased to Rs 91.22 crore for year ended March 2021 from Rs 114.64 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 84.61 crore, compared to Rs 50.46 crore during the year ended March 2020.

Commenting on the results, Mr. Arvind Goenka, Promoter and Managing Director said, "After beginning the year with unprecedented challenges due to the spread of covid-19 pandemic and strict lockdown, we have ended FY21 with steady performance. The outburst of CoVID-19 pandemic had caused severe disruptions in business operations for many industries. Even after the disruption caused by COVID-19 in Ql FY21, we report a Total income of Rs. 344. 7 crore in FY21, with EBITDA of Rs. 124.0 crores and healthy margins at 36%.

Strong demand momentum has sustained in Q4 FY21. We have clocked total income of Rs. 106.9 crores for the quarter with higher proportion of domestic sales. Margins have been impacted by increased input cost which have further increased in Ql FY22. Our sustained focus on improving operational efficiencies and implemented tight operational cost control which has led to limited impact on EBITDA.

Tyre industry has witnessed positive demand momentum driven by shift in consumer behavior, preference for personal mobility, government spend on infrastructure, import restrictions and increased demand from rural markets. Also sustained recovery in OEM along with increase in demand from replacement market have boded well for the Tyre manufacturers. New announcements on tyre capacity expansions by various companies will drive demand for insoluble sulphur. Even though Ql of FY22 has again been impacted by second wave of COVJD-19.

We are pleased to inform that the Board of Directors of the Company have recommended a final dividend of Rs. 10 per equity share of Rs.10/- each {100% of FV) in addition to interim dividend of Rs. 4 per equity share paid in November 2020, thereby giving Total Dividend of Rs. 14 per equity share for the financial year 2020- 2021.

Manufacturing Operations at both our plants are running normally despite covid second wave. We are taking all necessary precautions at all workplaces. our capex is facing delays on account of hampered civil work due to unavailability of labour and mobility issues for procuring machines due to covid induced localized !ockdown in few states. With unlocking of economy and pick up in activities, we expect Phase-/ of 5,500 TPA insoluble sulphur line and 42,000 TPA sulphuric acid line in Dharuhera {Haryana) to be commissioned by Oct-21. The vaccination drive now open to all above 18 years, will achieve large scale immunity among the population and economic activities should be back to previous levels gradually.

To conclude, it has been a good year for us despite of external challenges. We believe that the short term may be challenging in the view of disruption caused due to second wave of CoVID-19 pandemic, however we are confident that medium term outlook is going to be stable. We are focused on developing high quality grades of insoluble sulphur through continuous investments in technology and R&D, increasing our value proposition to our marquee client base."

The scrip closed at Rs 1088