|
Oriental
Carbon & Chemicals consolidated net sales increased 92% to Rs 92.2 crore in
Q1FY22 compared to Q1FY21. Sales of
Chemicals segment has gone up 86.78% to Rs 81.21 crore (accounting for 88.03%
of total sales). Sales of General
Engineering Products segment has gone up 142.50% to Rs 11.04 crore (accounting
for 11.97% of total sales).
Inter-segment sales rose Rs 0.01 crore to Rs 0.04 crore.
Operating
profit margin has jumped from 10.33% to 20.41%, leading to 279.44% rise in
operating profit to Rs 18.82 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
26.20% to 37.92%. Employee cost decreased from 25.40% to 14.62%. Other expenses
fell from 36.99% to 29.13%.
Other
income rose 50.99% to Rs 5.33 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 1,306.73% to Rs 16.54 crore. PBIT
of Chemicals segment rose 713.10% to Rs 15.51 crore (accounting for 93.75% of
total PBIT). PBIT of General Engineering
Products reported profit of Rs 1.03 crore compared to loss of Rs 0.73
crore.
PBIT
margin of Chemicals segment rose from 4.39% to 19.09%. PBIT margin of General Engineering Products
segment rose from negative 16.07% to 9.36%.
Overall PBIT margin rose from 2.45% to 17.93%.
Provision
for interest fell 38.66% to Rs 1.19 crore.
Provision for depreciation rose 6.64% to Rs 5.62 crore. Profit before tax grew 1,254.69% to Rs 17.34
crore. Share of profit/loss were nil in
both the periods. Provision for tax was
expense of Rs 4.14 crore, compared to Rs 0.68 crore. Effective tax rate was 23.88% compared to
53.13%.
Net
profit attributable to owners of the company increased 1,193.94% to Rs 12.81
crore.
Promoters’
stake was 51.76% as of 30 June 2021 compared to 51.76% as of 30 June 2020
.
Full year results
analysis
Net
sales of Oriental Carbon & Chemicals have 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, "Q1FY22 was a challenging
quarter marked by the second wave of covid-19 impacting demand, both locally
and global markets. Further, raw material prices continued their increasing
trend as was anticipated. Despite these headwinds, we have reported Total
Income of Rs. 86.5 crore with EBITDA of Rs 22.8 crore and PAT of Rs.12.4 crore for Q1FY21.
We
continued to operate our manufacturing facilities taking all necessary
precautions while ensuring safety and well-being of the employees. The Company
also organized for vaccination of all employees and their family members. The
regional lockdowns which were imposed to curb the spread of COV/0-19 are being
relaxed which is positive for the growth momentum to continue in the coming
quarters.
As
mentioned in the last quarter, the spike in raw material prices have further
increased from last quarter which has impacted our margins as price increase
generally happen on quarterly /half yearly basis. However, with our continuous
efforts towards controlling costs and focus on improving our operational
efficiencies, we have managed to limit the impact on EBITDA.
We
had faced delays due to the logistical challenges created by the onset of the
second wave of Covid-19. Therefore the Phase-I of 5,500 TPA insoluble sulphur
line and 42,000 TPA sulphuric acid line in Dharuhera (Haryana) is now expected
to be commissioned by October`21.
The
board has approved revised dividend policy which shall be available on website.
This once again underline our commitment to our shareholders.
As
per ICRA, the Indian Tyre industry is expected to grow in the current financial
year aided by sharp recovery in OEM tyre demand, lower base of FY21, improving
pace of vaccination, preference for personal mobility and healthy rural cash
flows amid a normal monsoon forecast. With lockdowns easing out, replacement
demand is expected to bounce back along with an uptick in auto production on back
of pent-up demand, thereby driving the demand for insoluble sulphur.
The
business environment continues to be a bit uncertain due to a predicted third
wave of the pandemic, however we are well equipped to navigate the near term
challenges based on our learning`s of last year and are confident that the
strength of our proprietary manufacturing technology will continue to drive our
business relationships and growth. We are well placed to deliver sustainable
and profitable long-term growth with our dominant position in the industry, and
would be focused on expanding our foothold in markets where we have low
penetration over the next 3-5 years.”
The
scrip closed at Rs 1155
|
Oriental Carbon & Chemicals : Consolidated Results
|
|
Particulars
|
2106
(03)
|
2006
(03)
|
Var.(%)
|
2103
(12)
|
2003
(12)
|
Var.(%)
|
|
Net Sales
|
92.20
|
48.02
|
92
|
373.86
|
386.79
|
-10
|
|
OPM (%)
|
20.4
|
10.3
|
|
31.1
|
27.1
|
|
|
OP
|
18.82
|
4.96
|
279
|
116.37
|
104.79
|
-16
|
|
Other Inc.
|
5.33
|
3.53
|
51
|
12.64
|
10.58
|
8
|
|
PBIDT
|
24.15
|
8.49
|
184
|
129.01
|
115.37
|
-14
|
|
Interest
|
1.19
|
1.94
|
-39
|
6.54
|
9.57
|
10
|
|
PBDT
|
22.96
|
6.55
|
251
|
122.47
|
105.8
|
-16
|
|
Depreciation
|
5.62
|
5.27
|
7
|
22.07
|
21.44
|
6
|
|
PBT
|
17.34
|
1.28
|
999
|
100.4
|
84.36
|
-20
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
17.34
|
1.28
|
999
|
100.4
|
84.36
|
-20
|
|
EO Income
|
0
|
0
|
-
|
0
|
-1.76
|
-
|
|
PBT after EO
|
17.34
|
1.28
|
999
|
100.4
|
82.6
|
-22
|
|
Taxation
|
4.14
|
0.68
|
509
|
17.41
|
7.83
|
-73
|
|
PAT
|
13.2
|
0.6
|
999
|
82.99
|
74.77
|
-2
|
|
Minority Interest (MI)
|
0.39
|
-0.39
|
PL
|
3.99
|
1.63
|
17
|
|
Net profit
|
12.81
|
0.99
|
999
|
79.0
|
73.14
|
-3
|
|
EPS (Rs)*
|
#
|
#
|
|
79.1
|
74.8
|
|
|
Notes
|
|
* EPS is on current equity of Rs 9.99 crore, Face value of Rs
10, Excluding extraordinary items.
|
|
# EPS is not annualised
|
|
bps : Basis points
|
|
Figures in Rs crore
|
|
Source: Capitaline Corporate Database
|
|
Oriental Carbon & Chemicals : Consolidated Segment Results
|
|
|
Quarter
ended
|
Year
ended
|
|
|
% of (Total)
|
202106
|
202006
|
Var.(%)
|
% of (Total)
|
202103
|
202003
|
Var.(%)
|
|
Sales
|
|
Chemicals
|
88
|
81.21
|
43.48
|
87
|
89
|
332.51
|
343.48
|
-3
|
|
General Engineering Products
|
12
|
11.04
|
4.55
|
143
|
11
|
41.48
|
43.38
|
-4
|
|
Total Reported Sales
|
100
|
92.24
|
48.03
|
92
|
100
|
373.99
|
386.86
|
-3
|
|
Less: Inter segment revenues
|
|
0.04
|
0.01
|
294
|
|
0.13
|
0.07
|
96
|
|
Net Sales
|
|
92.2
|
48.02
|
92
|
|
373.86
|
386.79
|
-3
|
|
PBIT
|
|
Chemicals
|
94
|
15.51
|
1.91
|
713
|
96
|
95.4
|
83.48
|
14
|
|
General Engineering Products
|
6
|
1.03
|
-0.73
|
LP
|
4
|
4.07
|
5.52
|
-26
|
|
Total PBIT
|
100
|
16.54
|
1.18
|
999
|
100
|
99.47
|
89
|
12
|
|
Less : Interest
|
|
1.19
|
1.94
|
-39
|
|
6.54
|
9.57
|
-32
|
|
Add: Other un-allcoable
|
|
1.98
|
2.06
|
-4
|
|
7.47
|
3.18
|
135
|
|
PBT
|
|
17.33
|
1.29
|
999.00
|
|
100.4
|
82.6
|
21.54
|
|