OCCL Limited · NSE:OCCLLTD
OCCL — Oriental Carbon & Chemicals — Q1 FY2021 Earnings Presentation
27 slides from OCCL's earnings presentation, August 2020
Slide 1: Oriental Carbon & Chemicals Limited Investor Presentation
Oriental Carbon & Chemicals Limited Providing Solutions… …Creating Innovations Investor Presentation – August 2020 1
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: Company Overview
Company Overview Duncan JP Duncan JP Goenka Group Goenka Group OCCL OCCL is is a people a people andand technology technology driven Company Company driven company company One of the market leader in the OurOur products products are “REACH” are “REACH” compliant One of the market leader in the produ
Slide 4: Key Strengths
KEY STRENGTHS
Slide 5: Key Strengths
Key Strengths Niche Product Portfolio of Insoluble Sulphur, PRODUCT Sulphuric Acid & Olems offered in various grades to satisfy diverse compounding High Entry Barriers with regards to requirements majorly for Tire industry • Customer Approvals HIGH ENTRY • Technology BARRIERS • Capital Intensive The
Slide 6: We deliver a Niche Product Portfolio
We deliver a Niche Product Portfolio… 93% 7% INSOLUBLE SULPHUR SULPHURIC ACID & OLEUMS ▪ Insoluble Sulphur is sold under the brand “DIAMOND SULF” ▪ Manufactures both Commercial Grade and Battery Grade ▪ Application : Used as vulcanising agent in application where Sulphuric Acid and Oleums sulphur lo
Slide 7: With Strong Customer Relationships
With Strong Customer Relationships… Oriental Carbon & Chemicals Limited 7
Slide 8: Having Presence in 21 Countries
Having Presence in 21 Countries RUSSIA EUROPE NORTH AMERICA CHINA INDIA SOUTH EAST 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. ...across the globe Oriental Carbon & C
Slide 9: We have Continuously expanded
We have Continuously expanded… Mundra Plant – Phase I & II Dharuhera Plant Set up Insoluble Sulphur Capacity of Mundra Plant Incorporated as Dharuhera Dharuhera Plant – EOU 11000 MTPA Increase Insoluble Sulphur Chemicals Ltd to manufacture Set up 2nd line of Insoluble Sulphur with capacity of 4,000
Slide 10: Having State of Art Manufacturing Facilities
Having State of Art Manufacturing Facilities… Product name Annual Capacity (MT) Location No. Of Lines Insoluble Sulphur 12,000 Dharuhera (Haryana) 2 Insoluble Sulphur 22,000 SEZ Mundra (Gujarat) 4 Sulphuric Acid / Oleum 46,000 Dharuhera (Haryana) 1 Oriental Carbon & Chemicals Limited 10
Slide 11: We use Cost Optimization Strategies
We use Cost Optimization Strategies KEY RAW LOGISTICAL FIXED POWER COST TAX MATERIAL ADVANTAGE COSTS OPTIMIZATION BENEFIT Sulphur available Presence at the Port With increase production at Self-Sufficiency of easily due to ample gives Location the plants Operating steam for Plant at supply Advantage
Slide 12: Experienced Management Team
Experienced Management Team Mr. J. P. Goenka - Promoter & Chairman Mr. Arvind Goenka - Promoter & Managing Director ▪ Graduate from Kolkata University – An Industrialist associated with the renowned ▪ Commerce Graduate from Kolkata University with 30 years of Experience in managing multi-Industry gr
Slide 13: Having High Entry Barriers
Having High Entry Barriers • Various grades to satisfy diverse compounding requirements of leading tire manufacturers Product Portfolio • Ongoing development of New Grades to meet Customer requirements • Minimum 24 months required by Customers to approve & validate product from new supplier Customer
Slide 14: Key Growth Opportunities
OCCL KEY GROWTH OPPORTUNITIES
Slide 15: Global Tyre Industry
Global Tyre Industry Tire Production Tire Rubber Consumption (mn units) (‘000 tonnes) +3.2% +3.1% 2,098 31,733 +2.2% 1,788 +2.3% 27,281 1,691 24,737 1,433 21,692 2006 2011 2016 2021E 2006 2011 2016 2021E Source: Notch Report Oriental Carbon & Chemicals Limited 15
Slide 16: Insoluble Sulphur – Demand Forecast
Insoluble Sulphur – Demand Forecast Geographical Breakup Radialisation Effect $22 bn Investment Insoluble Sulphur to Tire Rubber Ratio 1.4 Asia 1% 9% 1.36 17% North America Europe 1.31 South America 1.27 28% 45% Africa & Middle East 2006 2011 2016 2021E *Insoluble Sulphur Demand (‘000 tonnes) +3.8%
Slide 17: Key Growth Drivers
Key Growth Drivers 04 Capacity Expansion Radialization Geographical Penetration • Capacity expansion at Mundra An increase in rate of Radialization in • North America is the largest market for Insoluble • In-house technology and Common Infrastructure Commercial Vehicles in India will lead sulphur wi
Slide 18: Capacity Expansion…Ready for Future Growth
Capacity Expansion…Ready for Future Growth +47.8% Addition 34,000 Existing 5,500 28,500 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 Insoluble Sulphur Demand ▪ Large Tire manufacturers expanding
Slide 19: New Project Announced
New Project Announced… INSOLUBLE SULPHUR SULPHURIC ACID Expansion of Insoluble Sulphur Capacity Expansion of Sulphuric Acid Capacity by 11,000 MT by 42,000 MT Expansion in 2 phases of 5,500 MT each Total Capacity of Sulphuric Acid would become 88,000 MT • Capital investment would be of ~Rs.216 crore
Slide 20: Financials
FINANCIALS
Slide 21: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Standalone Particulars (Rs. Crs.) Q1 FY21 Q1 FY20 Q4 FY20 FY20 Total Income from Operations^ 46.9 95.3 88.3 353.0 Raw Material* 13.1 24.0 20.6 90.1 Employee Expenses 9.2 12.4 11.0 44.6 Other Expenses 15.6 32.3 27.8 109.8 EBITDA^ 9.0 26.6 29.0 108.5 EBITDA Margin (%
Slide 22: Balance Sheet - Standalone
Balance Sheet - Standalone EQUITY & LIABILITIES (Rs. Crs.) Mar-20 Mar-19 ASSETS (Rs. Crs.) Mar-20 Mar-19 Equity Share Capital 10.0 10.0 Property, Plant and Equipment 337.9 343.9 Other Equity 458.0 403.5 Capital Work-in-progress 25.3 3.3 Total Equity 468.0 413.5 Other Intangible Assets 0.4 0.5 Financ
Slide 23: Standalone Cashflow Statement
Standalone Cashflow Statement Particulars (Rs. Crs.) Mar-20 Maar-19 Net Profit Before Tax 79.3 102.6 Adjustments for: Non Cash Items / Other Investment or Financial Items 23.3 26.6 Operating profit before working capital changes 102.6 129.2 Changes in working capital 21.2 -20.5 Cash generated from O
Slide 24: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Consolidated Particulars (Rs. Crs) Q1 FY21 Q1 FY20 Q4 FY20 FY20 Total Income from Operations^ 51.5 106.9 98.9 397.4 Raw Material* 15.8 30.4 26.5 114.4 Employee Expenses 11.1 14.8 13.3 54.1 Other Expenses 16.1 33.3 28.7 113.5 EBITDA^ 8.5 28.4 30.4 115.4 EBITDA Mar
Slide 25: Balance Sheet - Consolidated
Balance Sheet - Consolidated EQUITY & LIABILITIES (Rs. Crs.) Mar-20 Mar-19 ASSETS (Rs. Crs.) Mar-20 Mar-19 Equity Share Capital 10.0 10.0 Property, Plant and Equipment 353.5 360.1 Other Equity 454.6 398.6 Capital Work-in-progress 25.3 3.4 Total Equity Other Intangible Assets 0.6 0.7 464.6 408.6 Inta
Slide 26: Consistent Dividend Records
Consistent Dividend Records Dividend (% of Face Value) 120% 100% 100% 100% 85% 85% 70% 50% 50% 40% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 The Board of Directors has recommended a Final Dividend of Rs.6/- per equity share in addition to Interim Dividend of Rs.4 per equity share paid in Nov
Slide 27: 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 Mr. Deven Dhruva / Ms. Neha Shroff [email protected] deven.dhruva@s
Oriental Carbon & Chemicals — Q1 FY2021 Earnings Presentation on 6ix