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Oriental Carbon and Chemicals Ltd. results were below our estimates on account of multiple headwinds. Revenue came in at Rs 110 crore (our estimate – Rs 125 crore), remaining flattish QoQ.
The prices of key raw materials and fuel have increased sharply on account of inflationary trend and steep increase in commodity prices across the globe.
Supply chain issues have led to increased expenses in terms of freight costs. This coupled with high raw material prices have contracted the gross profit and Ebitda margins, impacting the overall profitability of Oriental Carbon.
Ebitda stood at Rs 22 crore, down by 2.5% QoQ (our estimate – Rs 28 crore). This led to margins contracting by 34 bps to 19.8%. The profit after tax declined by 14% QoQ to Rs 12 crore (our estimate – Rs 20 crore).
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