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ORIENTAL CARBON & CHEMICALS LIMITED

lCorporote tdentity Number {CtN} _ t-24297WBl978ptcog l S39l


Regd. Ollice ; ,Duncon House., 31, Neloii Subhos Roocr, Kolkoto _ 700

OOI

; 091.033-2230-6831/6832, Fox No. : O9l -033-224347 72

E-moil : occl@col2.vsnl.net.il], occlkol@gmoll.com, Webslte I www.occtindio.com

03'd

lune 2016

The Secretary
The Calcutta Stock Exchange Ltd.
7 Lyons Range

Kolkata-700 001

The Managr

The Manager

BSE Limited

NationalStock Exchange of lndia Limited

Department of Corporate Services

Exchange Plaza, Bandra Kurla Complex

Floor 25, P. J. Towers, Dalal Street

Bandra (E)

Mumbai
F

400 001

Mumbai

ax No. 022-227 2-31,21,h27 8 / L557 / 335 4

Email: corp. relations@ bsein dia.com

400 051

Fax No. 022-2659-8237 / 8238/8347 / 8348

Email: cm

list(@ nse.co.

in

Dear Sir/Madam,

Re: lnvestor Presentation for the quarter and vear ended 31"t March, 2015
Pursuant to the provision of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, please find herewith a copy of the lnvestor Presentation for the
Quarter and Year ended 31't March, 201-6.
Than king you,
Yours Faithfully,
ORIENTAL CARBON

CAI.S LTD.

Pre
Company Secretary &
Senior Manager-Legal

Encl: As above.

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ORIENTAL CARBON & CHEMICALS LTD


Investor Presentation May 2016

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 for any securities, and shall not form the basis or be relied on in connection with any
contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a
statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but
the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all
inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or
any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and business
prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees
of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict.
These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of
various international markets, the performance of the industry in India and world-wide, competition, the companys ability to
successfully implement its strategy, the Companys future levels of growth and expansion, technological implementation, changes
and advancements, changes in revenue, income or cash flows, the Companys market preferences and its exposure to market
risks, as well as other risks. The Companys actual results, levels of activity, performance or achievements could differ materially
and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any
forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties
included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements
and projections.

Highlights: FY16 Performance


Revenue (Rs. Crs)

Gross Profit (Rs. Crs)

EBITDA (Rs. Crs)

+4.1%

-2.8%

+13.7%

283

275

198

206

FY15

FY16

FY15

FY16

EBIT (Rs. Crs)

71

FY15

81

FY16

PAT (Rs. Crs)

+0.1%

+3.3%

71

71

51

53

FY15

FY16

FY15

FY16
3

Financial Performance

3.3%

23.0%

Excl. Other Income

PAT Y-o-Y Growth (%)

Incl. Other Income

Incl. Other Income

0.1%

12.4%

Excl. Other Income

EBIT Y-o-Y Growth (%)

Other Income - Largely Foreign Exchange Fluctuations


Comparison of FY15 & FY16

Margin Profile FY16


Gross Profit
Margin Improved from 69.9% in FY15 to 74.8% in FY16

EBITDA

+491
bps
+429
bps

Margin Improved from 25.2% in FY15 to 29.5% in FY16

+322
bps
EBIT*
Margin Improved from 20.6% in FY15 to 23.8% in FY16

+361
bps

PAT*
Margin Improved from 13.6% in FY15 to 17.2% in FY16

*Excl. Other Income

About The
Company

01

A Duncan JP Goenka Group Company


CAPACITY

REVENUE

INCREASE

10 Years CAGR

7.5x

21 %

CUSTOMER
BASE

EBITDA

+40

10 Years CAGR

31 %

MARKET

PAT

SHARE

10 Years CAGR

10 %

41 %
7

Ongoing Capacity Expansion


Dharuhera Plant EOU
Set up 2nd line of Insoluble
Sulphur with capacity of 4,000
MTPA

2005

2015-16
Dharuhera Plant
Insoluble sulphur
operations started with
capacity of 3,000 MTPA

2008

Dharuhera + Mundra
Insoluble Sulphur: 23,000 MTPA
Sulphuric Acid: 46,000
Expansion of 11,000MTPA at Mundra
in 2 Phases is underway

1994
Debottlenecking: Capacity Increase
Debottlenecking: Capacity
increased to 12,000 MTPA

2011-2012
Mundra Plant Phase I & II

1978
Dharuhera Plant
Incorporated as Dharuhera Chemicals
Ltd to manufacture Sulphuric Acid of
30,000 MTPA

Set up Insoluble Sulphur


Capacity of 11000 MTPA
Acquired 50% Equity shares of
Schrader Ducan Ltd.

Management Team
Mr. Arvind Goenka: Promoter & Managing Director

Mr. J. P. Goenka: Promoter & Chairman

Graduate from Kolkata University An Industrialist associated


with the renowned multi-Industry group name Duncan
Having 55 years of Experience in the industries of diverse
business interests such as Jute & Cotton Textiles, Wool-Tops,
Industrial Explosives, Rubber Chemicals & Engineering
products
Mr. Akshat Goenka: Promoter & Jt. Managing Director

Graduate in Economics & International Relations from


University of Pennsylvania, USA
Lead the team for setting up new Plant for manufacturing
Insoluble Sulphur at SEZ Mundra, Gujarat

Mr. Anurag Jain: Chief Financial Officer (CFO)

Mr. Vijay Sabbarwal: Sr. Vice President (Operations)

He is an IIT graduate & heading the Operations of the


company from 2014
Has over 25 years of experience in divers Industrial segments
like Chemicals, FMCG, Consumer Durables, Auto etc

Commerce Graduate from Kolkata University


Having 30 years of Experience in managing jute, lubricants
and carbon black industry with expertise in finance and
international marketing
Responsible for the Long-term Goal Setting & Monitoring the
progress of the Company

Part of the company from last 24 years


He brings dynamism to the Financial & Commercial
Operations of the company & has played a key role in the
Growth and Restructuring of the company over the years

Mr. Muneesh Batta: Vice President (Marketing)

An M.B.A (International Business) with over 14 years of


experience in International business
Responsible for international marketing of Insoluble Sulfur &
increasing market share of Diamond Sulf overseas

Manufacturing Facilities

Product name

Annual Capacity (MT)

Location

No. Of Lines

Insoluble Sulphur

12,000

Dharuhera (Haryana)

Insoluble Sulphur

11,000

SEZ Mundra (Gujarat)

Sulphuric Acid / Oleum

46,000

Dharuhera (Haryana)

1
10

Business
Overview

02

11

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 grades to satisfy diverse compounding
requirements majorly for Tire industry
1. High Dispersion Grades
2. High Stability Grades
3. Special Grades

Sulphuric Acid
Manufactures both Commercial Grade and Battery Grade Sulphuric Acid and
Oleums

Application : Dehydrating agent, catalyst, active reactant in chemical processes ,


solvent , detergents and absorbent
Offered in following Grades
1. Grades of exact purity : Storage battery ,rayon, dye, Detergent and
pharmaceutical industries
2. Grades of less specifications :Steel, heavy chemical and
superphosphate industries

12

Cost Optimization Strategy

Power Cost

Raw Material
Key Raw Materials :
- Sulphur available
easily due to ample
supply
- Naphthenic Oil is
procured from
domestic as well as
international players

Freight
Presence at the Port
gives Location
Advantage of
reduced Logistic &
Freight Cost
~71 % of the sales
constitutes Exports

Tax Exemption
Fixed Costs

Self-Sufficiency of
steam for Plant at
Dharuhera
Benefits from Lower
Power Cost in SEZ
Gujarat

With increase
production at the
plants Operating
Leverage to play
out

Future Expansion
will result in
reduced Fixed
cost/ Overheads
per MT as R&D
and Utilities will
be shared

SEZ location of
Mundra Plant Income Tax
Exemption
benefit

13

Global Customer Relationships

14

Global Sales Network


Presence in 21 Countries across the World

North Asia
Russia

North
America

Europe
China
India
Africa

Southeast Asia

South
America

15

Opportunities

03

16

Key Growth Drivers


Radialisation

Product Portfolio

An increase in rate of
Radialization in
Commercial Vehicles in
India will lead to an
increase in requirement
of Insoluble Sulphur

To shift to 100% Production


of High Stability, High
Dispersion & Special grades
of Insoluble Sulphur

Growth
Drivers
Geographical Penetration
North America is the largest
market for Insoluble sulphur
with potential for growth to
increase share
Insoluble sulphur requirement
increasing at a fast pace in
Asia High Growth Market

Capacity Expansion
Capacity expansion at Mundra
In-house technology and
Common Infrastructure
available
Strategic Location to meet
Exports demand
Approval from all Large Global
Tire Companies
17

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

18

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
1,689

15,858

1,689

15,389

15,334

2011

2012

1,634

12,456

1,397

2005

2011

Source: Notch Report

2012

2013

2014

2015

2020E

2005

2013

2014

2015

2020E

19

Insoluble Sulphur - Demand Forecast


Geographical Breakup - $28 bn Investment

Radialisation: Insoluble Sulphur to Tire Rubber Ratio


1.44

7%

Asia

4%

North America

16%

1.34
Europe

1.35

1.35

1.35

2012

2013

2014

1.36

1.37

1.3

56%
South America

17%

Africa & Middle East

2005

2011

2015

2016E

2020E

*Insoluble Sulphur Demand (000 tonnes)


+28.8%
340

227

228

236

2011

2012

2013

250

264

277

2015

2016E

178

2005

Source: Notch Report


* Also incl. Insoluble Sulphur used for Non-Tire Goods

2014

2020E

20

Planned Capacity Expansion


Addition

+47.8%

Existing

34,000
28,500
23,000

5,500

5,500

23,000

5,500

17,500
12,000

5,500

23,000

17,500

28,500

12,000
2011

2012

2013

Brownfield Expansion To cater to the Growth in


Insoluble Sulphur Demand
Large Tire manufacturers expanding their business in Asia High
Growth Market
Grabbing opportunities of increasing Radialisation in India
Strong R&D and in house Technology to support future expansion

2015

2017

Capital Investment till 2018


Capital investment would be of ~Rs.159 crs : funded with
debt equity ratio of 2:1. It includes

Rs.7 crs for Working capital margin

Rs.15 crs for Coal Fired Boiler expected to be


operational by April 16; Resulting in savings in Power
& Fuel cost at Mundra Plant

Expected Project IRR is in excess of 25% and projected


payback ~4 years

Increase in market share in the Domestic & International market


Increase presence in North American Market

2018

Increase from Natural Growth of Existing Customers

Coal Fired Boiler was commissioned in April-16


21

Entry Barriers: An Advantage


Product
Portfolio

Various grades to satisfy diverse


compounding requirements of
leading tire manufacturers

Customer
Approvals

Ongoing development of New


Grades to meet Customer
requirements

In house
Technology

In house R&D team works on a


continuous basis to improve Quality
of product and its Properties
In house technology team to
maintain the technical and quality
edge at each production stage

Minimum 24 months required by


Customers to approve & validate
product from new supplier
Widely accepted around the world
as a preferred vendor by leading
tire manufacturers

Capital
Intensive

Edge over the others o Land & Common Infrastructure


available for further expansion at
Mundra
o In-house Technology

22

Financial
Highlights

04

23

Revenue Breakup
Domestic (Rs. Crs)

Exports(Rs. Crs)

112

+13.4%

176

180
163

102

+13.3%
96
93

140

143

FY12

FY13

85

70
95
53
FY10

77
FY11

FY12

FY13

FY14

FY15

FY16

FY10

FY11

FY14

FY15

FY16

24

Profit & Loss Statement Standalone


Particulars (Rs. In Crs)
Sales from Operations
Other Operating Income
Total Income from Operations
Other Income
Total Income
Total Raw material*
Power & Fuel Cost
Employee Cost
Other Expenses
EBITDA
EBITDA (%)
Depreciation
EBIT
EBIT (%)
Interest
Profit Before Tax
Provision for Tax
PAT
PAT (%)
*Total Raw material cost incl. change in Inventories

FY16

FY15

271.29
3.43
274.72
5.69
280.40
69.21
34.03
32.78
57.62
86.76
30.9%
15.65
71.11
25.4%
6.35
64.76
11.78
52.99
18.9%

282.13
0.44
282.57
12.86
295.43
85.07
40.38
27.95
57.89
84.14
28.5%
13.08
71.06
24.1%
8.10
62.96
11.65
51.32
17.4%

Y-o-Y

-2.8%

-5.1%

3.1%

0.1%

2.9%
3.3%

25

Profit & Loss Statement Standalone


Particulars (Rs. In Crs)
Sales from Operations
Other Operating Income
Total Income from Operations
Other Income
Total Income
Total Raw material*
Power & Fuel Cost
Employee Cost
Other Expenses
EBITDA
EBITDA (%)
Depreciation
EBIT
EBIT (%)
Interest
Profit Before Tax
Provision for Tax
PAT
PAT (%)
*Total Raw material cost incl. change in Inventories

Q4FY16

Q4FY15

68.52
0.84
69.37
0.71
70.08
15.88
7.77
9.70
16.95
19.78
28.2%
3.38
16.41
23.4%
1.76
14.64
2.63
12.02
17.1%

75.57
0.06
75.63
5.25
80.87
24.29
8.37
7.16
17.61
23.44
29.0%
3.41
20.03
24.8%
2.09
17.95
2.38
15.57
19.3%
26

Balance Sheet - Standalone


Particulars (Rs. Crs)

Mar-16

Mar-15

Particulars (Rs. Crs)

Mar-16

Mar-15

Shareholders Fund

286.64

244.18

Non-current assets

285.29

248.4

Share capital

10.31

10.31

Fixed assets (inc. CWIP)

222.33

191.7

Reserves & Surplus

276.33

233.87

Non-current Investments

14.71

14.7

Non-current liabilities

44.40

66.49

Long Term Loans & Advances

48.26

42.0

Long term borrowings

21.39

44.09

Current assets

132.03

142.70

Deferred Tax liabilities


(net)

21.14

21.12

Current Investments

15.48

26.6

Other Long term liabilities

1.87

1.29

Inventories

38.67

37.3

Current liabilities

86.29

80.43

Trade receivables

48.05

51.5

Short term borrowings

27.74

25.73

Cash and bank balances

10.00

17.7

Trade payables

10.21

15.35

Short term loan and


advances

14.60

5.2

Other current liabilities

48.34

39.35

Other current assets

5.23

4.4

Total Liabilities

417.32

391.10

Total Assets

417.32

391.10
27

Profit & Loss Statement - Consolidated


Particulars (Rs. Crs)
Total Income from Operations
Total Raw material*
Power & Fuel Cost
Employee Cost
Other Expenses
Operating EBITDA
Operating EBITDA (%)
Other Income
Depreciation
EBIT
EBIT (%)
Interest
Profit Before Tax
Provision for Tax
PAT before Minority Interest
Minority Interest
PAT after Minority Interest
PAT after Minority Interest (%)
*Total Raw material cost incl. change in Inventories

FY16

FY15

338.13
113.46
35.51
43.56
63.83
81.77
24.2%
5.68
20.34
67.10
19.8%
8.41
58.69
12.63
46.06
-3.46
49.52
14.6%

346.67
129.86
42.01
39.41
67.21
68.19
19.7%
13.63
16.38
65.43
18.9%
10.35
55.08
9.82
45.27
-3.02
48.29
13.9%

-2.5%

347

338

FY15

FY16
+19.9%

82

68

FY15

FY16
+2.5%

48

50

FY15

FY16

28

Balance Sheet - Consolidated


Particulars (Rs. Crs)

Mar-16

Mar-15

Particulars (Rs. Crs)

Mar-16

Mar-15

Shareholders Fund

283.21

244.22

Non-current assets

295.12

262.40

Share capital

10.31

10.31

Fixed assets (inc. CWIP)

246.31

219.12

Reserves & Surplus

272.90

233.91

Non-current Investments

0.18

0.18

Minority Interest

11.10

14.57

Long Term Loans & Advances

48.63

43.10

Non-current liabilities

44.94

66.92

Current assets

156.26

176.92

Long term borrowings

21.39

44.09

Deferred Tax liabilities (net)

21.14

21.12

Current Investments

15.48

26.61

Other Long term liabilities

2.42

1.71

Inventories

50.81

53.03

Current liabilities

112.12

113.61

Trade receivables

60.91

67.58

Short term borrowings

41.08

39.79

Cash and bank balances

10.97

18.25

Trade payables

19.80

29.65

Short term loan and


advances

12.79

6.90

Other current liabilities

51.25

44.17

Other current assets

5.29

4.54

Total Liabilities

451.38

439.31

Total Assets

451.38

439.31

29

Consistent Dividend Record


Dividend (% of Face Value)

85%
70%

40%

40%

FY10

FY11

50%

50%

FY12

FY13

FY14

FY15

Interim Dividend of Rs.3 & Final Dividend of Rs. 5.5 per equity share of FV of Rs. 10

30

For further information, please contact:


Company :

Investor Relations Advisors :

Oriental Carbon & Chemicals Ltd.


CIN: L24297WB1978PLC031539
Mr. Anurag Jain - CFO
anuragjain@occlindia.com

Strategic Growth Advisors Pvt. Ltd.


CIN: U74140MH2010PTC204285
Ms. Payal Dave / Ms. Neha Shroff
dpayal@sgapl.net / sneha@sgapl.net

http://www.occlindia.com/

www.sgapl.net

31