Oriental Carbon & Chemicals Limited Q2FY21 consolidated PAT rises to Rs. 21.23 crore

ORIENTAL CARBON & CHEMICALS LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.93.52 crores during the period ended September 30, 2020 as compared to Rs.51.54 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.21.23 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.0.99 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.21.25 for the period ended September 30, 2020 as compared to Rs.1 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 93.52 crs	₹ 51.54 crs	81.45%
Net Profit	₹ 21.23 crs	₹ 0.99 crs	2044.44%
EPS	₹ 21.25	₹ 1	2025%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.93.52 crores during the period ended September 30, 2020 as compared to Rs.99.27 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.21.23 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.16.85 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.21.25 for the period ended September 30, 2020 as compared to Rs.16.88 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 93.52 crs	₹ 99.27 crs	-5.79%
Net Profit	₹ 21.23 crs	₹ 16.85 crs	25.99%
EPS	₹ 21.25	₹ 16.88	25.89%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.145.07 crores during the 6 months period ended September 30, 2020 as compared to Rs.206.21 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.22.23 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.40.07 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.22.25 for the 6 months period ended September 30, 2020 as compared to Rs.40.12 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 145.07 crs	₹ 206.21 crs	-29.65%
Net Profit	₹ 22.23 crs	₹ 40.07 crs	-44.52%
EPS	₹ 22.25	₹40.12	-44.54%

Commenting on the results, Mr. Arvind Goenka, Promoter and Managing Director said "After a subdued performance in Q1 due to slowdown in Automobile industry and Covid-19 led disruptions, we are pleased to report a recovery in our business trajectory in the second quarter with a PAT growth of 30% YoY. This was on the back of normalisation of replacement and OEM demand in domestic as well as international markets. Operations at both plants are taking place with all the necessary precautions and our utilization levels are improving consistently. Decrease in income for Q2FY21 as compared Q2FY20 is mainly due to reduction in acid volume and prices (without effecting margins) and higher proportion of domestic sales during the quarter.

Operational Efficiency have recovered post first quarter results which were badly effected due to COVID. Our balance sheet continues to be robust which allows us to easily navigate through economic cycles.

Continuing with our Company's philosophy of rewarding the shareholders for their continuous support, the Board of Directors have approved an Interim Dividend of Rs. 4 per equity share of FV of Rs. 10 each. We expect this momentum to sustain going ahead led by the normalisation of operations in most markets and the upcoming festive season in India. With another good monsoon and good harvest for rabi crop, the domestic rural economy is expected to remain buoyant going ahead. However, the optimism is subject to any reoccurrence of COVID related shutdown imposed by any Govt in future.

Our Capex plan is facing delay due to suspension of civil and other work during the shutdown period on account of COVID-19 pandemic and availability of labour thereafter. The First Phase of Insoluble Sulphur Plant and the Sulphuric Acid Plant which was expected to be commissioned by end of FY21 would be delayed and expected to be commissioned by Q1FY22.

We are on a strong footing to deliver sustainable and profitable long-term growth with our dominant position in the industry, being the only domestic player producing IS with domestic market share of ~60% and ~10% global market share. We would be focused on expanding our foothold in markets where we have low penetration over the next 3-5 years, especially North America which is the largest market."

Shares of ORIENTAL CARBON & CHEMICALS LTD. was last trading in BSE at Rs.773.15 as compared to the previous close of Rs. 775. The total number of shares traded during the day was 20 in over 13 trades.

The stock hit an intraday high of Rs. 777 and intraday low of 769.1. The net turnover during the day was Rs. 15473.

Source : Equity Bulls

Keywords