OCCL Limited · NSE:OCCLLTD
OCCL — Oriental Carbon & Chemicals — Q3 FY2017 Earnings Presentation
29 slides from OCCL's earnings presentation, February 2017
Slide 1: Oriental Carbon & Chemicals Ltd Investor Presentation – February 2017
ORIENTAL CARBON & CHEMICALS LTD Investor Presentation – February 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Oriental Carbon & Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 3: Performance Highlights
01 Performance Highlights Financials 02 Company Overview Growth Opportunities Business 03 Overview Growth Opportunities Performance Highlights 04 Financials 3
Slide 4: Result Highlights: Q3 FY17
Result Highlights: Q3 FY17 Revenue (Rs. Crs) EBITDA (Rs. Crs) +11.2% +3.9% 73 21 21 66 Q3 FY16 Q3FY17 Q3 FY16 Q3FY17 EBIT (Rs. Crs) PAT (Rs. Crs) +4.1% +8.8% 17 18 14 15 Q3 FY16 Q3FY17 Q3 FY16 Q3FY17 *incl. Other Income 4
Slide 5: Margin Profile: Q3 FY17
Margin Profile: Q3 FY17 Gross Profit (%) EBITDA (%) 76.5% 76.2% 31.2% 29.1% Q3 FY16 Q3FY17 Q3 FY16 Q3FY17 EBIT (%) PAT (%) 26.0% 24.5% 20.8% 20.3% Q3 FY16 Q3FY17 Q3 FY16 Q3FY17 *incl. Other Income 5
Slide 6: Result Highlights: 9M FY17
Result Highlights: 9M FY17 Revenue (Rs. Crs) EBITDA* (Rs. Crs) +4.4% +1.3% 288 87 216 225 67 68 9M FY16 9M FY17 FY16 9M FY16 9M FY17 FY16 EBIT (Rs. Crs) PAT (Rs. Crs) +4.6% +7.7% 71 53 55 57 41 44 9M FY16 9M FY17 FY16 9M FY16 9M FY17 FY16 *incl. Other Income 6
Slide 7: Margin Profile: 9M FY17
Margin Profile: 9M FY17 Gross Profit (%) EBITDA* (%) 75.3% 75.7% 76.0% 31.1% 30.2% 30.1% 9M FY16 9M FY17 FY16 9M FY16 9M FY17 FY16 EBIT (%) PAT (%) 25.4% 25.4% 24.7% 19.0% 19.6% 18.4% 9M FY16 9M FY17 FY16 9M FY16 9M FY17 FY16 *incl. Other Income 7
Slide 8: Company Overview
01 Performance Highlights Financials 02 Company Overview Growth Opportunities Business 03 Overview Growth Opportunities Performance Highlights 04 Financials 8
Slide 9: Company Overview
Company Overview Aims to be the A Duncan JP most respected, Goenka Group most preferred Company technology driven Insoluble Sulphur State of the art manufacturing supplier to the facilities in India at Dharuhera Rubber industry (Harayana) and at Mundra (Gujarat) OCCL is a people and technology One o
Slide 10: OCCL - A Duncan JP Goenka Group Company
OCCL - A Duncan JP Goenka Group Company MARKET SHARE 10 % CAPACITY NCREASE 7.5x CUSTOMER BASE Text +40 REVENUE - 10 Years CAGR +18 % EBITDA - 10 Years CAGR +24 % PAT - 10 Years CAGR +30 % 10
Slide 11: Management Team
Management Team Mr. J. P. Goenka: Promoter & Chairman Mr. Arvind Goenka: Promoter & Managing Director ▪ Graduate from Kolkata University – An Industrialist associated ▪ Commerce Graduate from Kolkata University with 30 years of with the renowned multi-Industry group name Duncan Experience in managin
Slide 12: Manufacturing Facilities
Manufacturing Facilities Product name Annual Capacity (MT) Location No. Of Lines Insoluble Sulphur 12,000 Dharuhera (Haryana) 2 Insoluble Sulphur 16,500 SEZ Mundra (Gujarat) 3 Sulphuric Acid / Oleum 46,000 Dharuhera (Haryana) 1 12
Slide 13: Ongoing Capacity Expansion
Ongoing Capacity Expansion Dharuhera + Mundra Debottlenecking: • Insoluble Sulphur: 23,000 MTPA Capacity Increase • Sulphuric Acid: 46,000 2015- • Expansion of 11,000MTPA at 2016 Debottlenecking: Capacity Mundra in 2 Phases is underway increased to 12,000 MTPA Dharuhera Plant 2008 Insoluble sulphur
Slide 14: Product Profile
Product Profile Insoluble Sulphur (IS) ▪ Insoluble Sulphur is sold under the brand “DIAMOND SULF” ▪ Application : Used as vulcanising agent in application where sulphur loading levels are required above the sulphur solubility rating of particular elastomers ▪ DIAMOND SULF is offered in various grade
Slide 15: Cost Optimization Strategy
Cost Optimization Strategy 01 03 05 Raw Material Fixed Costs 04 Tax Exemption 02 ▪ Key Raw ▪ With increase ▪ SEZ location of Materials : production at Mundra Plant - Freight the plants Power Cost Income Tax - Sulphur Operating Exemption available easily ▪ Presence at the Leverage to play ▪ Self-Suff
Slide 16: Global Customer Relationships
Global Customer Relationships 16
Slide 17: Global Sales Network
Global Sales Network Presence in 21 Countries across the World Russia North America Europe China India Southeast Asia Africa South America Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness. 17
Slide 18: Growth Opportunities
01 Performance Highlights Financials 02 Company Overview Growth Opportunities Business 03 Overview Growth Opportunities Performance Highlights 04 Financials 18
Slide 19: Key Growth Drivers
Key Growth Drivers ▪ Capacity expansion at ▪ North America is the Mundra largest market for Insoluble sulphur with ▪ In-house technology and potential for growth to Common Infrastructure increase share available ▪ Insoluble sulphur ▪ Strategic Location to meet requirement increasing at Exports deman
Slide 20: Trends driving Insoluble Sulphur Demand
Trends driving Insoluble Sulphur Demand 01 Increase in Automation in Tire Industry 02 Higher Performance Expectation from Tires 03 Radial Revolution: Radialization in Asia Fast Growing Market Source: Notch Report 20
Slide 21: Global Tire Industry – Growth Projections
Global Tire Industry – Growth Projections Tire Production (mn units) Tire Rubber Consumption (‘000 tonnes) +20.7% +21.8% 2,254 21,499 17,647 1,868 16,745 1,776 15,858 1,689 1,689 15,389 15,334 1,634 1,397 12,456 2005 2011 2012 2013 2014 2015 2020E 2005 2011 2012 2013 2014 2015 2020E Source: Notch Re
Slide 22: Insoluble Sulphur - Demand Forecast
Insoluble Sulphur - Demand Forecast Geographical Breakup - $28 bn Investment Radialisation: Insoluble Sulphur to Tire Rubber Ratio 1.44 Asia 7% 4% 1.37 16% North America 1.36 1.35 1.35 1.35 1.34 Europe 56% 1.3 17% South America Africa & Middle East 2005 2011 2012 2013 2014 2015 2016E 2020E *Insolubl
Slide 23: Planned Capacity Expansion
Planned Capacity Expansion Addition Existing +47.8% 34,000 28,500 5,500 23,000 23,000 5,500 17,500 5,500 28,500 12,000 5,500 23,000 17,500 12,000 2011 2012 2013 2015 2017 2018 Brownfield Expansion – To cater to the Growth in Capital Investment till 2018 Insoluble Sulphur Demand ✓ Capital investment
Slide 24: Entry Barriers: An Advantage
Entry Barriers: An Advantage Product In house Portfolio Technology Customer Capital ▪ Various grades Approvals ▪ In house R&D Intensive to satisfy team works on a diverse continuous basis compounding to improve Quality requirements ▪ Minimum 24 of product and its of leading tire months required Prop
Slide 25: Financials
01 Performance Highlights Financials 02 Company Overview Growth Opportunities Business 03 Overview Growth Opportunities Performance Highlights 04 Financials 25
Slide 26: Profit & Loss Statement – Standalone
Profit & Loss Statement – Standalone Particulars (Rs. Crs) Q3 FY17 Q3 FY16 Y-o-Y 9M FY17 9M FY16 Y-o-Y FY16 Gross Sales 72.7 64.9 222.0 213.0 284.7 Other Operating Income 0.6 0.9 3.0 2.6 3.4 Revenue from Operations 73.3 65.9 11% 225.0 215.6 4% 288.2 Other Income 2.1 2.8 5.4 5.0 5.7 Total Income 75.4
Slide 27: Balance Sheet - Standalone
Balance Sheet - Standalone Particulars (Rs. Crs) Sept-16 Mar-16 Particulars (Rs. Crs) Sept-16 Mar-16 Shareholder’s Fund 312.2 286.6 Non-current assets 327.4 285.3 Share capital 10.3 10.3 Fixed assets (inc. CWIP) 267.3 222.3 Reserves & Surplus 301.9 276.3 Non-current Investments 14.7 14.7 Non-current
Slide 28: Consistent Dividend Record
Consistent Dividend Record Dividend (% of Face Value) 85% 85% 70% 50% 50% 40% 40% FY10 FY11 FY12 FY13 FY14 FY15 FY16 Interim Dividend of Rs. 3/- per equity share (i.e. 30% of FV of Rs. 10) was paid on November 23,2016 28
Slide 29: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Oriental Carbon & Chemicals Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L24297WB1978PLC031539 CIN: U74140MH2010PTC204285 Mr. Anurag Jain - CFO Ms. Payal Dave / Ms. Neha Shroff [email protected] Payal.dave@sgapl
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