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Results
29-Oct-21
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Analysis
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Oriental Carbon & Chemicals
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Margins decline
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Oriental
Carbon & Chemicals consolidated net sales increased 21.97% to Rs 110.38
crore in Q2FY22 compared to Q2FY21.
Sales of Chemicals segment has gone up 22.43% to Rs 96.66 crore
(accounting for 87.57% of total sales).
Sales of General Engineering Products segment has gone up 18.21% to Rs
13.72 crore (accounting for 12.43% of total sales). Inter-segment sales came down from Rs 0.05 crore
to Rs 0.00 crore.
Operating
profit margin has declined from 35.90% to 20.15%, leading to 31.55% decline in
operating profit to Rs 22.24 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
26.13% to 37.12%. Employee cost decreased from 14.29% to 13.57%. Other expenses
rose from 25.77% to 28.54%.
Other
income rose 44.37% to Rs 4.36 crore.
PBIDT fell 25.09% to Rs 26.6 crore. Profit before interest, tax and
other unallocable items (PBIT) has slumped 32.69% to Rs 18.67 crore. PBIT of Chemicals segment fell 35.83% to Rs
16.67 crore (accounting for 89.31% of total PBIT). PBIT of General Engineering Products segment
rose 13.68% to Rs 1.99 crore (accounting for 10.69% of total PBIT).
PBIT
margin of Chemicals segment fell from 32.90% to 17.25%. PBIT margin of General Engineering Products
segment fell from 15.12% to 14.54%.
Overall PBIT margin fell from 30.62% to 16.91%.
Provision
for interest fell 30.90% to Rs 1.23 crore.
PBDT fell 24.79% to Rs 25.37 crore.
Provision for depreciation rose 9.42% to Rs 5.81 crore.
Profit
before tax down 31.18% to Rs 19.56 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 5.51
crore, compared to Rs 6.36 crore.
Effective tax rate was 28.17% compared to 22.38%.
Minority
interest decreased 13.41% to Rs 0.71 crore.
Net profit attributable to owners of the company decreased 37.19% to Rs
13.34 crore.
Equity
capital decreased from Rs 10.01 crore as of 30 September 2020 to Rs 9.99 crore
as of 30 September 2021 . Per share face
Value remained same at Rs 10.00.
Promoters’
stake was 51.76% as of 30 September 2021 compared to 51.76% as of 30 September
2020 .
For year-to-date (YTD)
results analysis
Net
sales of Oriental Carbon & Chemicals have increased 46.25% to Rs 202.58
crore. Sales of Chemicals segment has
gone up 45.29% to Rs 177.87 crore (accounting for 87.78% of total sales). Sales of General Engineering Products segment
has gone up 53.23% to Rs 24.75 crore (accounting for 12.22% of total
sales). Inter-segment sales came down
from Rs 0.06 crore to Rs 0.04 crore.
Operating
profit margin has declined from 27.04% to 20.27%, leading to 9.64% rise in
operating profit to Rs 41.06 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
26.15% to 37.50%. Employee cost
decreased from 17.76% to 14.08%. Other expenses fell from 29.28% to
28.83%.
Other
income rose 47.71% to Rs 9.69 crore.
PBIDT rose 15.31% to Rs 50.75 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 21.83% to Rs 35.20 crore. PBIT of
Chemicals segment rose 15.44% to Rs 32.18 crore (accounting for 91.40% of total
PBIT). PBIT of General Engineering
Products segment rose 195.85% to Rs 3.03 crore (accounting for 8.60% of total
PBIT).
PBIT
margin of Chemicals segment fell from 22.77% to 18.09%. PBIT margin of General Engineering Products
segment rose from 6.33% to 12.23%.
Overall PBIT margin fell from 20.85% to 17.37%.
Provision
for interest fell 35.12% to Rs 2.42 crore.
PBDT rose 19.99% to Rs 48.33 crore.
Provision for depreciation rose 8.03% to Rs 11.43 crore.
Profit
before tax grew 24.24% to Rs 36.90 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 9.65
crore, compared to Rs 7.04 crore.
Effective tax rate was 26.15% compared to 23.70%.
Minority
interest increased 155.81% to Rs 1.10 crore.
Net profit attributable to owners of the company increased 17.63% to Rs
26.15 crore.
Commenting on the
results, Mr. Arvind Goenka, Promoter and Managing Directors said
"We
have reported total income of Rs.187.3 crores in the first half of the current
fiscal with EBITDA and PAT of Rs.47.2 and Rs. 25.1 respectively. This was on
the back of revival in demand post the second wave of the pandemic,
normalization of replacement and OEM demand in domestic and international
markets, improvement in economic activities with significant decline in covid
cases and increase in vaccination rate.
Sharp
increase in raw material costs and freight costs has resulted in lower margins
and impacted overall profitability with the time lag in raising the finished
product prices. We continue to be focused on improving operational efficiencies
and are continuously taking steps towards controlling costs.
The
business environment is stable except for South Asian markets which are still
affected by Covid. Operations at both our plants are running smoothly.
The
Company is in the process of starting trial runs of its upcoming Insoluble
Sulphur plant at Dharuhera and we expect to commission the project in November
2021.
In
order to reward the shareholders for their continuous support, the Board of
Directors have recommended an Interim Dividend of Rs. 7 per equity share of FV
of Rs. 10 each.
The
Indian Tyre market is witnessing capacity expansions undertaken by tyre
manufacturers and new products have been introduced over past few months.
Indian Tyre market offtake appears to be optimistic. With increasing
radialization in LCV and TBR tyre consumers, on account of superior mileage and
fuel efficiency will drive large consumption of insoluble sulphur. We expect
this momentum to sustain going ahead led by the normalization of operations in
most markets and the upcoming festive season in India.
With
the completion of our capacity expansion, we are optimistic of gaining new
orders on back of our long standing relationship with our customers. We are on
a strong footing to deliver sustainable and profitable longterm growth with our
dominant position in the industry, being the only domestic player producing IS
with domestic market share of around 60% and around 10% global market share,
and a marquee customer base of 40+ tyre OEMs."
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.
The
scrip closed at Rs 1032
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Oriental Carbon & Chemicals : Consolidated Results
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Particulars
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2109
(03)
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2009
(03)
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Var.(%)
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2109
(06)
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2009
(06)
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Var.(%)
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2103
(12)
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2003
(12)
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Var.(%)
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Net Sales
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110.38
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90.5
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22
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202.58
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138.52
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46
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373.86
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386.79
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-10
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OPM (%)
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20.2
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35.9
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20.3
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27.0
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31.1
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27.1
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OP
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22.24
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32.49
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-32
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41.06
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37.45
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10
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116.37
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104.79
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-16
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Other Inc.
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4.36
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3.02
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44
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9.69
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6.56
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48
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12.64
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10.58
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8
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PBIDT
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26.6
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35.51
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-25
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50.75
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44.01
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15
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129.01
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115.37
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-14
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Interest
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1.23
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1.78
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-31
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2.42
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3.73
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-35
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6.54
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9.57
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10
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PBDT
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25.37
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33.73
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-25
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48.33
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40.28
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20
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122.47
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105.8
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-16
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Depreciation
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5.81
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5.31
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9
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11.43
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10.58
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8
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22.07
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21.44
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6
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PBT
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19.56
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28.42
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-31
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36.9
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29.7
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24
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100.4
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84.36
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-20
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Share of Profit/(Loss) from Associates
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0
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0
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-
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0
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0
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-
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0
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0
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-
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PBT before EO
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19.56
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28.42
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-31
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36.9
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29.7
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24
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100.4
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84.36
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-20
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EO Income
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0
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0
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-
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0
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0
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-
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0
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-1.76
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-
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PBT after EO
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19.56
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28.42
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-31
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36.9
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29.7
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24
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100.4
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82.6
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-22
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Taxation
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5.51
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6.36
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-13
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9.65
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7.04
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37
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17.41
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7.83
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-73
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PAT
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14.05
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22.06
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-36
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27.25
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22.66
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20
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82.99
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74.77
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-2
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Minority Interest (MI)
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0.71
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0.82
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-13
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1.1
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0.43
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156
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3.99
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1.63
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17
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Net profit
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13.34
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21.24
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-37
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26.15
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22.23
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18
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79.0
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73.14
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-3
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EPS (Rs)*
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#
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#
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#
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#
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79.1
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74.8
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Notes
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* EPS is on current equity of Rs 10.00 crore, Face value of Rs
10, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Oriental Carbon & Chemicals : Consolidated Segment Results
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% of (Total)
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2109
(03)
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2009
(03)
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Var.(%)
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% of (Total)
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2109
(06)
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2009
(06)
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Var.(%)
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% of (Total)
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2103
(12)
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2003
(12)
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Var.(%)
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Sales
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Chemicals
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88
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96.66
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78.95
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22
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88
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177.87
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122.43
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45
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89
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332.51
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343.48
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-3
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General Engineering Products
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12
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13.72
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11.6
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18
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12
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24.75
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16.16
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53
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11
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41.48
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43.38
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-4
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Total Reported Sales
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100
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110.38
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90.55
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22
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100
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202.62
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138.58
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46
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100
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373.99
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386.86
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-3
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Less: Inter segment revenues
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0
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0.05
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-97
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0.04
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0.06
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-29
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0.13
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0.07
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96
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Net Sales
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110.38
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90.5
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22
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202.58
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138.52
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46
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373.86
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386.79
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-3
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PBIT
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Chemicals
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89
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16.67
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25.98
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-36
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91
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32.18
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27.87
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15
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96
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95.4
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83.48
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14
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General Engineering Products
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11
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1.99
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1.75
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14
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9
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3.03
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1.02
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196
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4
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4.07
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5.52
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-26
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Total PBIT
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100
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18.67
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27.73
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-33
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100
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35.2
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28.9
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22
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100
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99.47
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89
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12
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Less : Interest
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1.23
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1.78
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-31
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2.42
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3.73
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-35
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6.54
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9.57
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-32
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Add: Other un-allcoable
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2.12
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2.47
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-14
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4.1
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4.54
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-10
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7.47
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3.18
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135
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PBT
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19.56
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28.42
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-31
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36.89
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29.71
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24
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100.4
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82.6
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22
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Previous News |
Oriental Carbon & Chemicals fixes record date for interim dividend
(
Market Beat
-
Reports
29-Oct-20
09:44
)
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Oriental Carbon & Chemicals consolidated net profit declines 61.01% in the December 2021 quarter
(
Results
-
Announcements
01-Feb-22
14:49
)
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Oriental Carbon & Chemicals consolidated net profit declines 4.98% in the September 2023 quarter
(
Results
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Announcements
26-Oct-23
14:16
)
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Oriental Carbon & chemicals
(
Results
-
Analysis
21-Jun-21
09:16
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Oriental Carbon & Chemicals
(
Analyst Meet / AGM
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Conference Call
03-Feb-22
16:24
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Oriental Carbon & Chemicals to hold AGM
(
Corporate News
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19-Jun-21
13:24
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Oriental Carbon & Chemicals
(
Results
-
Analysis
29-Oct-21
08:55
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Oriental Carbon & Chemicals standalone net profit rises 35.21% in the December 2018 quarter
(
Results
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Announcements
01-Feb-19
15:22
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Oriental Carbon & Chemicals consolidated net profit rises 2.65% in the December 2022 quarter
(
Results
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Announcements
08-Feb-23
15:48
)
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Oriental Carbon & Chemicals to hold board meeting
(
Corporate News
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18-May-16
12:13
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Board of Oriental Carbon & Chemicals recommends interim dividend
(
Corporate News
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09-Nov-15
10:34
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