OCCL Limited, one of the market leaders in the production of insoluble sulphur, has reported Q2 FY25 revenue of Rs. 104 crore and profit of Rs. 7.5 crore.

Commenting on the results, Arvind Goenka, Promoter and Managing Director said, "After a successful demerger, we are pleased to present the financial results for OCCL Limited for the quarter ended September 2024. Revenue for Q2 FY25 stood at Rs. 104 crore, EB/TOA stood at Rs. 19 crore with EB/TOA margins of 18.6%. Profit After Tax stood at Rs. 7.5 crore."

"Following the successful demerger, OCCL Limited is now an independent entity focused on the Chemical Business, including insoluble Sulphur and Sulphuric Acid manufacturing. This separation allows us to unlock value by tailoring growth strategies to the distinct risk-return profile of the Chemical Business," commented Goenka. 

"The company is navigating a challenging global environment marked by high inflation, reduced demand, lower realizations for chemicals worldwide and high international freight rates due to volatile geopolitical situations. Demand in Europe, the company's second-largest market, has been weak due to macroeconomic and geopolitical factors, including ongoing conflicts. Additionally, global production capacities currently exceed demand, putting a downward pressure on prices and margins. This trend is expected to persist until capacity and demand reach equilibrium. To address the issue of low-cost imports, the company has submitted an application to the DGTR seeking a recommendation for anti-dumping duty on Insoluble Sulphur imports from China and Japan," said Goenka.

"Our strategic focus remains centered on the customer, prioritizing their needs and preferences in every decision. We are deeply committed to in-house research, driving continuous innovation to deliver products of exceptional quality. This dedication to excellence not only enhances customer satisfaction but also fortifies our brand's position in today's competitive landscape. As demand dynamics shift due to factors like tire radialization, we remain confident in our ability to navigate this environment effectively. While demand is expected to normalize over time, we are well prepared to respond proactively, ensuring sustainable growth and value creation for the years to come," added Goenka.