Axis Securities: Oriental Carbon & Chemicals - Demand Recovery, Capacity Expansion To Drive Growth
A worker tests a liquid chemical inside a laboratory. (Photographer: Scott Eisen/Bloomberg)

Axis Securities: Oriental Carbon & Chemicals - Demand Recovery, Capacity Expansion To Drive Growth

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

Oriental Carbon and Chemicals Ltd. was one of the few companies in auto ancillary space that reported profit after tax despite decline in revenues due to closure of manufacturing facilities due to lockdown.

The company reported revenues of Rs 48 crore, Ebitda of Rs 5 crore and profit after tax of Rs 0.6 crore in Q1 FY21 amidst lockdown when the demand for the product- Insoluble Sulphur (IS) which goes into vulcunisation of rubber mainly for tyre industries had dropped.

The month on month improvement in sales volumes for automobile industry is indicating bottoming out of demand for the sector.

With the good monsoon and good harvest for rabi crop, the domestic rural economy is expected to come back with vengeance, the urban economy would follow though it is currently struggling with intermittent lockdowns.

As the economy gets back to its feet and more vehicles start plying on the road, the wear and tear of tyre would push the demand for tyres in replacement segment which is responsible for 70% of the overall tyre demand.

Click on the attachment to read the full report:

Axis Securities Oriental Carbon and Chemcials Q1FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.