OCCL Limited · NSE:OCCLLTD
OCCL — Oriental Carbon & Chemicals — Q3 FY2018 Earnings Presentation
25 slides from OCCL's earnings presentation, February 2018
Slide 1: Oriental Carbon & Chemicals Ltd Investor Presentation
ORIENTAL CARBON & CHEMICALS LTD Providing Solutions… …Creating Innovations Investor Presentation – February 2018
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 MARKET LEADER Duncan JP Goenka Group TECHNOLOGY Company DRIVEN Aims to be the most respected, One of the market leader in the most preferred technology production of Insoluble Sulphur driven Insoluble Sulphur MANUFACTURING supplier to the Rubber industry FACILITIES State of the art
Slide 4: Key Strengths
Financials Growth Opportunities KEY STRENGTHS Business Overview Performance Highlights 4
Slide 5: Key Strengths
Key Strengths Niche Product Portfolio of Insoluble Sulphur, Sulphuric Acid & Olems offered in various grades to satisfy diverse compounding requirements majorly for Tire industry One of the market leader in the production of Insoluble Sulphur having PRODUCT Domestic Share of ~55% Global market share
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 ▪ Manufactures both Commercial Grade and Battery “DIAMOND SULF” Grade Sulphuric Acid and Oleums ▪ Application : Used as vulcanising agent in ▪ Application : Dehydrating
Slide 7: With Strong Customer Relationship
…With Strong Customer Relationship… 7
Slide 8: Having Presence in 21 Countries
…Having Presence in 21 Countries… RUSSIA EUROPE NORTH AMERICA CHINA INDIA SOUTH EAST AFRICA ASIA SOUTH AMERICA ...across the globe Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness. 8
Slide 9: We have Continuously Expanded
We have Continuously Expanded... Mundra Plant Mundra Plant – Phase I & II • Increase Insoluble Sulphur Dharuhera Plant – EOU • Set up Insoluble Sulphur Capacity by 11,000 MTPA Dharuhera Plant Capacity of 11000 MTPA Incorporated as Dharuhera Set up 2nd line of • Phase I – 5,500MT (2017) – Chemicals L
Slide 10: Having State-of-the-Art Manufacturing Facilities
…Having State-of-the-Art… 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 …Manufacturing Facilities 10
Slide 11: We use Cost Optimization Strategies
We use Cost Optimization Strategies Low Fixed Costs • With increase production at the plants Operating Leverage to play out • Future Expansion will result in Logistical Advantage reduced Fixed cost/ Overheads per MT as R&D and Utilities will be shared Savings in Power Cost • Presence at the Port giv
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 ▪ Commerce Graduate from Kolkata University with 30 years of the renowned multi-Industry group name Duncan Experie
Slide 13: Having High Entry Barriers
Having High Entry Barriers ▪ Various grades to satisfy diverse compounding requirements of leading tire manufacturers ▪ Ongoing development of New Grades to meet Customer requirements Product Portfolio ▪ Minimum 24 months required by Customers to approve & validate product from new supplier Customer
Slide 14: Key Growth Opportunities
Financials Growth Opportunities KEY GROWTH Business Overview OPPORTUNITIES Performance Highlights 14
Slide 15: Global Tire Industry
Global Tire Industry Tire Production Tire Rubber Consumption (mn units) (‘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 Report 15
Slide 16: Insoluble Sulphur - Demand Forecast
Insoluble Sulphur - Demand Forecast Geographical Breakup Radialisation Effect $28 bn Investment Insoluble Sulphur to Tire Rubber Ratio Asia 1.44 7% 4% North America 16% 1.37 1.36 1.35 1.35 1.35 Europe 1.34 1.3 17% South America 56% Africa & Middle East 2005 2011 2012 2013 2014 2015 2016E 2020E *Inso
Slide 17: Key Growth Drivers
Key Growth Drivers Geographical Penetration Radialization ▪ North America is the largest market for Insoluble sulphur with potential for growth to Capacity An increase in rate of increase share Expansion Radialisation in Commercial ▪ Insoluble sulphur requirement Vehicles in India will lead to incre
Slide 18: Capacity Expansion: Ready for Future Growth
Capacity Expansion…. ….ready for future growth +47.8% Addition Existing 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 Capital Investment - 2018 To cater to the Growth in Insoluble Sulphur Demand ▪ Larg
Slide 19: Financials
Financials Growth Opportunities FINANCIALS Business Overview Performance Highlights 19
Slide 20: Result Highlights: Q3 FY18
Result Highlights: Q3 FY18 Revenues^ (Rs. Crs) EBITDA^ (Rs. Crs) PBT (Rs. Crs) +21% +28% +25% 88 27 21 72 21 17 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 EBITDA^ (%) PBT (%) + 170 bps + 70 bps 29.6% 31.3% 23.6% 24.3% Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 ^incl. Other Income, net of excise 20
Slide 21: Result Highlights: 9M FY18
Result Highlights: 9M FY18 Revenues^ (Rs. Crs) EBITDA^ (Rs. Crs) PBT (Rs. Crs) +10% +15% +10% 242 78 60 221 54 68 9M FY17 9M FY18 9M FY17 9M FY18 9M FY17 9M FY18 EBITDA^ (%) PBT (%) + 140 bps + 10 bps 30.8% 32.2% 24.6% 24.7% 9M FY17 9M FY18 9M FY17 9M FY18 ^incl. Other Income, net of excise 21
Slide 22: Profit & Loss Statement – Standalone
Profit & Loss Statement – Standalone Particulars (Rs. Crs) Q3 FY18 Q3 FY17 Y-o-Y 9M FY18 9M FY17 Y-o-Y Total Income from Operations 87.6 72.2 21% 242.3 220.6 10% Raw Material* 23.3 16.9 51.8 53.9 Employee Expenses 9.8 8.3 29.4 26.6 Other Expenses 27.1 25.6 83.0 72.1 EBITDA 27.5 21.4 28% 78.0 67.9 15
Slide 23: Balance Sheet – Standalone
Balance Sheet– Standalone EQUITY AND LIABILITIES (Rs. Crs.) 30-Sept-17 ASSETS (Rs. Crs.) 30-Sept-17 Equity Share Capital 10.3 Property, Plant and Equipment 302.4 Other Equity 352.4 Capital Work-in-progress 12.5 Other Intangible Assets 0.5 Total Equity 362.7 Intangible Assets under development 0.1 Fi
Slide 24: Consistent Dividend Record
Consistent Dividend Record Dividend (% of Face Value) 100% 85% 85% 70% 50% 50% 40% 40% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 The Board has approved Interim Dividend for the Financial Year 2017-18 of Rs. 3.00/- per equity share of Rs. 10/- each (30%) 24
Slide 25: 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. Neha Shroff / Mr. Deven Dhruva [email protected] neha.shroff@sg
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