Occl Limited · NSE:OCCLLTD
Occl — Oriental Carbon & Chemicals — FY2021 Earnings Presentation
30 slides from Occl's earnings presentation, June 2021
Slide 1: Oriental Carbon & Chemicals Limited Investor Presentation
Oriental Carbon & Chemicals Limited Providing Solutions… …Creating Innovations Investor Presentation – June 2021 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: Q4 & FY21 Financial Highlights
Q4 & FY21 Financial Highlights
Slide 4: Standalone Financial Highlights: Q4 FY21
Standalone Financial Highlights: Q4 FY21 Revenues^ (Rs. Crs) EBITDA^ (Rs. Crs) PAT (Rs. Crs) +21% +33% +45% 106.9 38.7 24.8 88.3 29.0 17.1 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 EBITDA^ (%) PAT (%) +340 bps +390 bps 36.2% 23.2% 32.8% 19.3% Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 ^incl. Other Income
Slide 5: Standalone Financial Highlights: FY21
Standalone Financial Highlights: FY21 Revenues^ (Rs. Crs) EBITDA^ (Rs. Crs) PAT (Rs. Crs) -2% +14% +5% 353.0 344.7 124.0 71.5 75.0 108.5 FY20 FY21 FY20 FY21 FY20 FY21 EBITDA^ (%) PAT (%) +530 bps +150 bps 36.0% 21.8% 20.3% 30.7% FY20 FY21 FY20 FY21 ^incl. Other Income Oriental Carbon & Chemicals Lim
Slide 6: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Standalone Particulars (Rs. Crs.) Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q FY21 FY20 Y-o-Y Total Income from Operations^ 106.9 88.3 21% 109.0 -2% 344.7** 353.0 -2% Raw Material* 30.2 20.6 22.7 79.1 90.1 Employee Expenses 10.4 11.0 13.0 44.0 44.6 Other Expenses 27.5 27.8
Slide 7: Balance Sheet - Standalone
Balance Sheet - Standalone EQUITY & LIABILITIES (Rs. Crs.) Mar-21 Mar-20 ASSETS (Rs. Crs.) Mar-21 Mar-20 Equity Share Capital 10.0 10.0 Property, Plant and Equipment 326.5 337.9 Other Equity 522.5 458.0 Capital Work-in-progress 113.3 25.3 Total Equity 532.5 468.0 Other Intangible Assets 0.4 0.4 Fina
Slide 8: Standalone Cashflow Statement
Standalone Cashflow Statement Particulars (Rs. Crs.) Mar-21 Mar-20 Net Profit Before Tax 96.6 79.3 Adjustments for: Non Cash Items / Other Investment or Financial Items 15.1 23.3 Operating profit before working capital changes 111.8 102.6 Changes in working capital -10.9 21.2 Cash generated from Ope
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Consolidated Particulars (Rs. Crs.). Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q FY21 FY20 Y-o-Y Total Income from Operations^ 121.1 98.9 22% 120.3 1% 386.5** 397.4 -3% Raw Material* 38.9 26.5 29.1 103.3 114.4 Employee Expenses 13.2 13.3 15.4 53.4 54.1 Other Expenses 28.
Slide 10: Balance Sheet - Consolidated
Balance Sheet - Consolidated EQUITY & LIABILITIES (Rs. Crs.) Mar-21 Mar-20 ASSETS (Rs. Crs.) Mar-21 Mar-20 Equity Share Capital 10.0 10.0 Property, Plant and Equipment 342.0 353.5 Other Equity 523.2 454.6 Capital Work-in-progress 113.3 25.3 Total Equity 533.2 464.6 Other Intangible Assets 0.5 0.6 In
Slide 11: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. Crs.) Mar-21 Mar-20 Net Profit Before Tax 100.4 82.6 Adjustments for: Non Cash Items / Other Investment or Financial Items 16.3 24.2 Operating profit before working capital changes 116.7 106.8 Changes in working capital -9.6 23.7 Cash generated from O
Slide 12: Consistent Dividend Records
Consistent Dividend Records Dividend (% of Face Value) 140% 120% 100% 100% 100% 85% 85% 70% 50% 50% 40% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 The Board of Directors has recommended a Final Dividend of Rs.10/- per equity share in addition to Interim Dividend of Rs. 4 per equity share
Slide 13: Company Overview
Company Overview Duncan JP Goenka Group Company OCCL is a people and technology driven company. Our products are One of the market leader in the “REACH” compliant & Company has production of Insoluble Sulphur ISO40001 & ISO45001 certification Aims to be the most respected, most 12 Year CAGR preferre
Slide 14: Key Strengths
KEY STRENGTHS
Slide 15: 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 16: We deliver a Niche Product Portfolio…
We deliver a Niche Product Portfolio… 92% 8% 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 17: With Strong Customer Relationships…
With Strong Customer Relationships… Oriental Carbon & Chemicals Limited 17
Slide 18: 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 19: 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 20: 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 20
Slide 21: 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 22: 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 23: 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 24: Key Growth Opportunities
OCCL KEY GROWTH OPPORTUNITIES
Slide 25: Global Tyre Industry
Global Tyre Industry Tire Production Tire Rubber Consumption (mn units) (‘000 tonnes) +3.1% 2,181 +3.3% 34,067 +2.1% 1,872 28,969 1,788 +2.3% 27,281 1,691 24,737 1,433 21,692 2006 2011 2016 2019 2024E 2006 2011 2016 2019 2024E Source: Notch Report Oriental Carbon & Chemicals Limited 25
Slide 26: Insoluble Sulphur – Demand Forecast
Insoluble Sulphur – Demand Forecast Radialisation Effect Insoluble Sulphur to Tire Rubber Ratio 1.41 1.39 1.36 1.31 1.27 2006 2011 2016 2019 2024E *Insoluble Sulphur Demand (‘000 tonnes) +3.6% 327 +3.1% 273 264 258 250 227 228 236 178 2005 2011 2012 2013 2014 2015 2016 2019 2024E Source: Notch Repor
Slide 27: 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 28: 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 29: Expansion Plan
Expansion Plan 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 crores includ
Slide 30: 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. Varun Divadkar/ Ms. Khushbu Shah [email protected] varun.divadk
Oriental Carbon & Chemicals — FY2021 Earnings Presentation on 6ix