OCCL Limited — Call Transcript 2025

Aug 11, 2025

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Date: August 11, 2025

The Manager The Manager BSE Limited National Stock Exchange of India Ltd. Department of Corporate Services , Exchange Plaza, Floor 25, P. J. Towers, Bandra Kurla Complex Dalal Street Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Code: 544278 Symbol: OCCLLTD

Dear Sir,

Subject: Transcript of Earnings Call Q1 FY26

This is further to our earlier letter dated July 31, 2025, regarding audio recording of Q1 FY26 Earnings Call held on July 31, 2025, please find enclosed herewith the transcript of the Earnings Call. The same is also uploaded on the Company’s website. Following is the link:

Transcript of Earning Call Q1 FY26

This is for your information and record.

Thanking you,

Yours Faithfully,

Yours truly, For OCCL Limited PRANAB Digitally signed by PRANAB KUMAR KUMAR MAITY Date: 2025.08.11 MAITY 16:01:22 +05'30' Pranab Kumar Maity Company Secretary & GM Legal

Encl.: As above.

Registered Office : Plants: Survey No. 141, Plot No. 3 & 4 Dharuhera Industrial Estate, Phase – 1 Paiki of Mouje, APSEZL, Dharuhera – 123106, Distt. Rewari, (Haryana) Mundra, Kachchh, Gujarat, India, 370421 SEZ Division: Survey No. 141, Paiki of Mouje Villag, Mundra, Taluka CIN: L24302GJ2022PLC131360 Mundra, Mundra SEZ, District Kutch, Gujarat, 370421

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“OCCL Limited

Q1 FY26 Earnings Conference Call”

July 31, 2025

E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 31[st] July 2025 will prevail.

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MANAGEMENT:

1. Mr. Akshat Goenka – Promoter and Joint Managing Director – OCCL Limited

2. Mr. Anurag Jain – Chief Financial Officer – OCCL Limited

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Moderator:

Ladies and gentlemen, good day and welcome to OCCL Limited Q1 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Akshat Goenka, Joint Managing Director of OCCL Limited. Thank you and over to you, Sir.

Akshat Goenka:

Good afternoon and a very warm welcome to everyone. Along with me, I have Mr. Anurag Jain, Chief Financial Officer and SGA, our Investor Relations Advisors. We have uploaded our results and investor presentation for the quarter ended 30th June 2025 on the Stock Exchanges and Company website. Hope each one of you had a chance to go through the same.

We have started FY26 on a positive note. Revenue stood at INR123 crores, a growth of 14% from Q4 FY25 and EBITDA also grew by 36%, driven by an increase in sulphuric acid margins. With the recent imposition of anti-dumping duties on imports from Japan and China, there will be improvement in the domestic market realization. We have been able to pass on some of these anti-dumping benefits in this July quarter to our customers and we hope to pass on the balance in the upcoming quarters.

And at the same time, we have started evaluating further actions against countries that were not covered in this round one of anti-dumping as well as the countries that were covered but have now further reduced their prices. So this battle from our side will continue on to ensure a proper level playing field and a level price in the Indian market and we will do everything that we can for that.

Now to share a few industry highlights. The insoluble sulphur market continues to witness stable demand which is growing steadily year on year but global realizations continue to remain weak due to oversupply. However, they are stabilizing now. Despite this, the long-term fundamentals of the insoluble sulphur market remain intact, driven by structural growth in the global tyre industry and the rising demand for high-performance, environment-compliant products, but we are quite confident in navigating through these challenges smoothly.

While certain external challenges remain beyond our control, we at OCCL Limited continue to prioritize technology-led innovation, cost optimization and product development. Additionally, we are actively working to enhance product quality with a growing emphasis on improving dispersion and thermal stability which are critical performance attributes for the next generation of tyres.

Going forward, our strategy is going to be to focus on product innovation, cost optimization and gaining larger share and better margins in the domestic market, driving sustainability by enhancing production efficiency and reducing our carbon footprint, and strengthening our customer base through long-term contracts.

To conclude, even during the most challenging industrial down cycles, the company has consistently maintained profitability and delivered strong cash conversion while paying out

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dividends to its shareholders, reflecting the strength of our core business and disciplined execution. Backed by a robust financial position, deep customer relationships and operational flexibility, we are well positioned to capitalize on opportunities as the market environment improves.

Now I would like to hand over the line to Mr. Anurag Jain to update you on the financial performance of the company. Thank you.

Anurag Jain: Thank you, Akshat. I will take you all through the financials of the company. Total income stood at INR123 crores and witnessed a growth of 14% from Q4 FY25. EBITDA stood at INR27 crores, a growth of 36% from Q4 FY25. EBITDA margins were at 21.7% against 18.1% earlier. Profit after tax stood at INR13 crores. PAT margins were 10.6%.

With this, I would like to open the floor for questions and answers.

Moderator: Thank you very much. We will now begin the question and answer session. The first question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.

Aditya Khetan: Thank you, sir, for the opportunity. The first question is, this jump in top line, you had mentioned that this is largely because of the sulphuric acid. But, sir, what we understand that the sulphur, which is the raw material, so that price is still elevated, like it has not come down. Our plant of sulphuric acid was operating at near peak levels.

So this jump in top line and these margins which you mentioned, how come it is from sulphuric acid? So what has changed basically?

Anurag Jain: So exactly what you are pointing out has changed. The sulphuric acid market operates at sulphur plus levels. So the selling price operates at sulphur plus levels. Since sulphur prices are elevated, therefore selling price of sulphuric acid is also on the higher side. Not only that, the margins on sulphuric acid were also better than historical. So that is why we see sulphuric acid contributing to the higher top line.

Aditya Khetan: But, sir, I believe like particularly in a quarter, anywhere contribution of sulphuric acid could be around in the range of INR15 crores to INR20 crores. This INR15 crores jump in our quarterly numbers, is it completely attributable to the sulphuric acid or also from insoluble sulphur?

Anurag Jain: No, it is not completely attributable to sulphuric acid, but yes, sulphuric acid has contributed considerably into this.

Aditya Khetan: Sir, this imposition of anti-dumping duty in insoluble sulphur, still we know like capacity is in excess of demand. Do you see any case like wherein the global producers can cut the antidumping duty and still continue the imports in India, considering the demand is muted and there is an overcapacity?

Anurag Jain: So what has happened is that when we started the process of anti-dumping duty, the average import price of China was $1,300, which had already come to an average of about $1,100 by Q4 FY25 and that is what we were matching. So, they had already reduced the price earlier. Now,

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looking at the cost structure which we know very well, we doubt the capability of these manufacturers to reduce the price further from this point.

So, whatever upside that I am going to have from now and which is quite considerable that from July onward we are going to have an upside, that is on this depressed price that we already were matching in the market.

Aditya Khetan: Sir, this anti-dumping duty I believe is imposed against China and Japan. So, Flexsys like which is in US, is there any chance like they could continue to dump excess material?

Anurag Jain: Well, when we were looking at the Flexsys, we saw on their website that they have decided to increase the prices by USD250 for the Indian market.

Aditya Khetan:

Sir, sorry, I didn't get it. They have increased the prices?

Anurag Jain: Yes, they have declared on their website that they are increasing the prices for the Indian market by USD250. I can assume that they were also selling at a lower price because of this Chinese import and that once anti-dumping duty has been imposed, they have also declared that they will increase the price.

Of course, the reasons that they give is because of innovation and cost related to innovation and research and market and raw material prices. They are increasing the price by USD250 in the Indian market.

Aditya Khetan: Sir, just one last question. On to the cost side when we look at employee and other expenses. So, these expenses have declined compared to our increase in top line. Any particular change which has happened because when we look at the trend of the last 3-4 quarters, this quarter has the lowest cost?

Anurag Jain: So, as far as employee cost is concerned, yes, we have been very careful in not increasing our employee cost. So, we are keeping a tight leash on all costs. As far as other expenses are concerned, yes, they have declined in the last quarter for two things. I mean, for the last 2-3 quarters.

One, of course, is in the last quarter there was some stamp duty payment related to the demerger which was sitting in the last quarter. About INR3.5 crores, I think. And secondly, international freights have come down a little bit. But then the main reason is the stamp duty in the previous quarter that we paid which is not there now.

Aditya Khetan:

Okay, got it. So, adding the INR3.5 crores also still the number looks lower only?

Anurag Jain: Yes, yes. So, there would be some saving here and there on annualized basis. Sometimes, you know, the expenditures get distributed not evenly over the quarter. But we are looking at savings in other costs also. How much it will actually happen will reflect in the six monthly account.

Aditya Khetan:

Got it. Thank you, sir.

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Moderator:

Thank you, sir. The next question is from the line of Riddhesh Gandhi from Discover Capital. Please go ahead.

Riddhesh Gandhi: Hi, sir. So, just wanted to understand in terms of where we are, in terms of normalizing earnings going ahead. I understand that in the earlier quarters, we had an impact of freight rate. So, this quarter, is it reflecting a normalised freight rate? And is the upside for the anti-dumping already in this quarter's number? Or is it partially in this quarter's numbers? Or how should we look at these two?

Anurag Jain: I mean, if you look at Q2 and Q3, freights have already come down and they have come down to a level which has been consistent for the last one or two quarters. Obviously, as and when geopolitical situation in terms of war stabilizes, it could come down further to the historical levels. But at now, they are stable.

As far as your question to anti-dumping duty is concerned, the anti-dumping duty was imposed in the month of June. And therefore, the impact of the anti-dumping duty is not present in our current quarter performance. It will reflect in our next quarter performance.

Riddhesh Gandhi: Got it. And if we were to understand in terms of the anti-dumping duty, how much of the benefit do you think we will be able to keep as opposed to what we had indicated, you know, passing on to the customers? How should we look at it? Anurag Jain: So, see, the benefit which will reflect in the balance sheet will be amalgamated benefit of the increase in prices and decrease or increase in direct costs, for example, sulphur or other things. But we are looking at a benefit of about INR70 lakhs to INR80 lakhs per month. Riddhesh Gandhi: So, about INR70 lakhs to INR80 lakhs will be the benefit of anti-dumping duty to us per month at the PBT level effectively. Anurag Jain: Yes, yes. At PBT level, this is what we are looking at, at least. Riddhesh Gandhi: Okay. Thank you. That's all. Moderator: Thank you, sir. The next question is from the line of Piyush Bangar from Vijit Global Securities Private Limited. Please go ahead. Piyush Bangar: Hi, good morning, sir. Basically, I have two questions. The first one is regarding the volume sales and realization of FY25 and FY26. So, basically, out of our capacity of 39,500 of insoluble sulphur and 88,000 MTPA of sulphuric acid, what was the capacity utilization in FY25? Anurag Jain: So, as far as insoluble sulphur is concerned, the capacity utilization was around 70%, give or take a percentage. And for sulphuric acid, it was 100%. Piyush Bangar: Okay. And what was the realization in both the products, insoluble sulphur and sulphuric acid, in domestic and exports markets, in FY25? Anurag Jain: Sorry, I cannot discuss that number because of competitive reasons.

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Piyush Bangar: Basically, what was the EBITDA level and PBT in the segments, insoluble sulphur and sulphuric acid?

Anurag Jain: Again, this is something I cannot disclose for this. Piyush Bangar: Okay. So, basically, let's say that we had X amount of realization in FY25. What do we expect that this realization trend in FY26, both in insoluble sulphur and sulphuric acid?

Anurag Jain: So, you have already seen that my first quarter is about at INR125 crores. Right? So, if we maintain the same run rate, assuming that insoluble sulphur prices will go up, sulphuric acid prices might come down. Even at the same run rate, this quarterly run rate translates to about INR500 crores.

I cannot be more specific on this because there is so much upheaval in currency and raw material prices. I can only say that we can take some clue or guidance from our current quarter performance, which is INR125 crores.

Piyush Bangar: Okay. And as you said that the anti-dumping duties impact was not there in the Q1 results. So, do you feel that the 21% of margins are sustainable in the long run or it's on a lower side? Anurag Jain: Again, we feel that this is something, at least for this year, we should be having. Whether it will increase or decrease will again depend on the geopolitical situation, on the exchange rate, on the raw material prices, which are all something which today I cannot dare to guess upon. For example, what Trump is doing, what are the sanctions which are being put against Russia or against what is European Union doing.

There are so many things which are turning out that will have impact on exchange rates and other raw materials. So, I would say that this is a good guidance to begin with, our quarter and that is the only guidance I can give as of now.

Piyush Bangar: Okay. Basically, the company has reduced debt by INR11 crores in FY25 and right now total debt is somewhere about INR56 crores in FY25. So, do we have any plans to reduce it further in FY26? Anurag Jain: So, out of INR56 crores, I think INR34 crores was the long term debt which was there, the rest is working capital. This INR34 crores will be repaid in two years, in normal course. So, it's very much less which is left, which we are paying on time, it will be repaid by the end of the next financial year.

Moderator: Mr. Piyush, may I request that you return to the question queue for follow-up questions as there are several participants waiting.

Piyush Bangar: Thank you very much for the opportunity. Congratulations.

Moderator: Thank you, sir. The next question is from the line of Vaibhav from Honesty and Integrity Investment. Please go ahead.

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Thanks a lot for providing the opportunity. So, sir, if I compare you with some of your financial competitors, is there any fundamental difference in technology adopted by our plants and our competitors like China Sunshine? If you can just help us understand what are the differences in technology?

Vaibhav: Thanks a lot for providing the opportunity. So, sir, if I compare you with some of your financial competitors, is there any fundamental difference in technology adopted by our plants and our competitors like China Sunshine? If you can just help us understand what are the differences in technology? Anurag Jain: So, we are not privy to the exact technology but one difference that we have against a few of the Chinese technology that we know is that they have a high temperature technology and our technology is a low temperature technology which requires lesser energy. Other than that, I cannot comment. Vaibhav: Okay. But then what is the difference between their expansion? Their expansion is always in the range of 30,000 MTPA while our expansion is always in the range of 5,500 MTPA. So, I was just trying to understand… Anurag Jain: It depends on the cash flow that they have and the kind of expansion that they do. What we understand is we take small bites and then grow accordingly. They take a larger bite. That is the only explanation I can have. Vaibhav: Okay Yes. So, in terms of the product portfolio, do we have more diversified product portfolio and the competitors have more standardized product that they sell at large scale? Would that be a correct statement or it is not that they also have very… Anurag Jain: We have number of smaller lines which makes it possible for us to run 3 or 4 or 2 or 3 as the market requires kind of products. According to the market, the flexibility in that aspect that we have, most of our competitors don't. And if I look at the offerings that we have, I think ours is in number of offerings one of the best in the industry. Vaibhav: Got it. Understood. And sir, last question for this round for me is that if you look at Eastman, before the period it was acquired and now, we see the amount of innovation in newer products that are coming out from that side has reduced considerably. So, how do you explain this and do you think that it has an impact on us because we were always trying to be ahead of Chinese because of this innovation cycle going on but now, innovation cycle has stopped and that's why probably Chinese have gained to some extent on us. Would that be a right statement? Anurag Jain: The Chinese product is now, I mean if we talk about 3-4 years back, Chinese product used to lag behind in quality. Now, their product is as good. So, that is one thing. And I think that there always comes a time in any product when the innovation slows down a little bit. I mean, maybe that is the situation with insoluble sulphur also as far as Flexsys is concerned or any other insoluble sulphur manufacturer for that matter. Though step by step increase in quality is always happening with all the manufacturers. So, within the same product portfolio, the quality keeps on increasing.

Vaibhav: Got it. Understood. So, I will now come back in the question.

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Moderator:

Thank you, sir. The next question is from the line of Dipanshu Sampath, an individual investor. Please go ahead.

Dipanshu Sampath: Hello, sir. Good afternoon. So, the first question I had was on your comment of annual run rate of INR500 crores. I think that is the number you had mentioned in the 3Q call as well, right? So, when we had discussed this and you said the annual run rate should be about INR500 crores at current capacities. Given the price changes and the Anti Dumping Duty, then this number is not really changing. So, any reason for that? Anurag Jain: No. What I said was that considering my current quarter performance, where I have done INR125 crores, that is the best guidance I can give. Basis, the changes, prices and realisation change on exchange rates, they change on the raw material prices. Of course, I will get a benefit of Anti Dumping Duty in my domestic sales. But they might get offset if the sulphuric acid price comes down and if sulphur prices come down. So, based on that, that is what I am saying. The best estimate I can give is the current quarter. Dipanshu Sampath: And sir, my second question is for Mr. Goenka. In the FY24 annual report, it was mentioned of the pre demerger entity that the de-merger would help us explore global alliances and partnership which is absent in the FY25 annual report from OCCL. So whether a rethink on this strategy? Can you please throw some light on this and how are we thinking about this? Akshat Goenka: There is no rethink on the strategy. I absolutely maintain what we had said earlier that the demerger would help us in doing all these things. But these things are better spoken about if and when they happen. That time when we were doing the de-merger, this was given as a stated objective. All I can say is that that objective still remains alive. Dipanshu Sampath: Sure. Thank you. Wishing you all the very best. Moderator: Thank you, sir. The next question is from the line of Mohit, an individual investor. Please go ahead. Mohit: Hello, sir. I have two questions. The first is regarding the new products of the company. As you said that the company is trying some products under insoluble sulphur and the company is also spending INR1.66 crores in the R&D. Along with that, the company has also ventured into the renewable energy and power generation thing. So, could you please elaborate what are the future plans of the company regarding the new products and what is the relevance of this renewable energy and power generation thing? And can we expect some kind of revenue in FY26 or ahead from this renewable energy and this thing? Anurag Jain: So, to first address your renewable energy question, number one, renewable energy will not have any impact on the revenue. It is a move towards our goal for sustainability. We have already covered both our plants with rooftop solar power generation. We have also contracted four 3.5 megawatt, about 3.2 megawatt, captive power plant buying from Haryana for our Dharuhera plant which would start in October maybe, end of September, October.

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So, these are as far as electricity is concerned. We had some surplus steam for which we have put up a turbine last year and which is now operating. So, that is another source of power which is clean power without burning any fuel. So, these are the sustainable power initiatives that we have taken.

As far as utility is concerned, we have greatly brought down our utility consumption and whatever is left has all been turned into gas from liquid fuel. Though we have a coal boiler in Mundra, but that is the only place where we are having solid fuel. Otherwise, everywhere we are using gas. So, there has been a substantial reduction in utility consumption which has again helped us to inch towards our objective of net zero carbon by 2050. So, that is one thing.

The other thing was about new products. We have always been saying and our R&D has always been focused into getting better products where we continue in our journey to always improve dispersion and stability of our product in order to anticipate and meet the future requirements of our customers, that is tyre companies, which are also evolving on account of the evolution in sustainability, evolution in the kind of cars which are now moving to EV and other places.

So, this is a continuous journey that we are doing where we are improving our products on a continuous basis.

Mohit: So, do we have any significant product in our pipeline in new products or something?

Anurag Jain: We have been making significant improvements in our products all the time.

Mohit: And we have expended INR1.66 crores in R&D. So, what is the strength of the team in R&D? Anurag Jain: R&D, we must be having about, I can't say offhand, but maybe around 12 to 15 people.

Mohit: Okay. My next question is, I just want to know the unit economics of tyre manufacturing in India, that how much insoluble sulphur is required, for example, let's say, in per unit manufacturing of the tyre?

Anurag Jain: So, the way they measure is, part per rubber and there our requirement is around 3% to 5% depending on the recipe of each tyre. So, how much rubber is used? 3 to 5 parts per rubber. As a percentage of total cost, it is very less. It is less than 1%, rather it is maybe 0.7 or 0.8% or around that.

Mohit: So, basically insoluble sulphur costs about 0.7% or 0.8%?

Anurag Jain: If you look at the turnover of all the tyre companies in India, right, and look at our turnover, you will have a fairly good idea.

Mohit: Okay. Do we have any capacity expansion plan? Moderator: I just have a thing that any capex plan if we have?

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Anurag Jain: Capex, we will take up once we have, once we are utilizing our current capacities optimally, then we will look at Capex. Currently, there is enough capacity lying around. So, this is not the time we are looking at expansion. Mohit: Okay. Thank you very much. Moderator: Thank you, sir. The next question is from the line of Anupam Jain from Indira Securities. Please go ahead. Anupam Jain: Thanks for the opportunity and congratulations on a great set of numbers. So, recently the antidumping duty was imposed and you were saying that market share, domestic market share will be added in this. Now, this duty is imposed for five years. I just want to understand, we are going to take 60% market share. What will be our domestic market share going forward for one or two years, if we have that horizon? Anurag Jain: So, our domestic market share is currently 55% and with the imposition of anti-dumping duty, we do hope that it will go up over a period of time, maybe to over 60%. So, that is our hope. Let us see how quickly it pans out. Anupam Jain: Okay. So, what you are saying is 40% will come in from outside after anti-dumping duty? Anurag Jain: I am saying over 60%. I am not saying 40% will come over from outside. Anupam Jain: No, because we are the only domestic manufacturer of insoluble sulphur. Anurag Jain: You have asked me whether you are looking at increase in your market share. I said yes, we are looking at an increase in market share. We are hoping that from the current 55% market share, we will go over 60%. That is the reply I have given. Anupam Jain: Alright. I get it. I get it. So, what I am trying to ask you is, insoluble sulphur is still getting imported in our country. I just want to understand why is that happening, even after anti-dumping duty? Anurag Jain: Anti-dumping duty has just been imposed in June. Anupam Jain: No, I am not asking about just right now. I am asking about a year from now, maybe two years. That is what I am asking the perspective. Why will not this be 60% or 55%? Why will it not go to 90% or 100%? That is my question.

Akshat Goenka: Firstly, anti-dumping duty has not been imposed on Malaysia and we are now going to be going whole hog to rectify that issue also because even Malaysia is dumping in this country. So, today things have been limited even by them and the Chinese have also dropped prices further after anti-dumping has come in. So, those things need to be rectified.

These are all very highly competitive information and I do not think we should be speaking in so much detail on the call. Let us see what happens in a year's time.

Okay. What do you expect of sustainable margins going forward?

Anupam Jain:

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Anurag Jain: It is very difficult to say. I have already replied to this question that we have the margin of the current quarter. It is very difficult in this current geopolitical situation. It is very difficult to give a future guidance on sustainable margins. Anupam Jain: Okay. Last question will be, you will be generating significant cash flow this year and now because your investment company is already demerged. What will be the cash flow planning for this? Will you be looking to return to the shareholder? Will you be looking to venture into newer segments? What will be your thought process about this? Can you just throw some light? Anurag Jain: See, we will be giving dividend as per our declared dividend policy. Anupam Jain: Yes, 35-40%. We get that. But apart from that, are you thinking about growth? Anurag Jain: It is not. Who said that our dividend policy is 25%? Anupam Jain: Historically, last year that was your payout. Anurag Jain: But that is not our dividend policy. Dividend policy is there on the website. You can go and read the policy. So you will get clarity on what our dividend policy is, number one. Number two, we would be conserving cash flows to have our kitty ready for fighting the market, in catching opportunities in the future and if and when the opportunity for expansion comes. So we will have that kitty with us. Anupam Jain: And this will be in the insoluble sulphur segment only? Anurag Jain: I don't know. Akshat Goenka: No, we can assure you that this money that is here will not be used to make financial investments like AG Ventures is making. That is our commitment. This will be used only for strategic purposes. Anupam Jain: Okay. Thank you. That will be all for me. Moderator: Thank you, sir. The next question is from the line of Amit Gauri, an individual investor. Please go ahead. Amit Gauri: Good afternoon. Thank you. My question has already been answered. Thank you very much. Moderator: Thank you, sir. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead. Aditya Khetan: Thank you, sir, for the follow-up. Sir, in the exports market, suppose out of 100, how much exports today are to US and to Europe?

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Anurag Jain:

US and Europe both constitute a significant amount of exports that we have. I cannot give you the exact numbers, but I can say that the bulk of exports that we do are constituted by US and Europe.

Aditya Khetan:

Okay. Sir, into the North American market, I believe in the last one to two years, we were striving hard to gain market share in the US market. But, sir, now, standing today, India is imposed on a 25% tariff versus Japanese tarrif is at 15%. I know, sir, these things are uncertain and can change over time. But, sir, standing today, how do you see exports from Japan to the US will go up and from OCCL to the US will go down? How should we look at this?

Anurag Jain:

If you are talking about insoluble sulphur per se, it is very, very early to talk about it. They have been declared yesterday. They have also said that we are still under negotiation. We are yet to talk to our customers post the imposition of the duty. Most of the sales that we do are strategic, whether they will be impacted by this.

Another additional 15% duty because, remember, 10% had been imposed with effect from April, which did not have any impact vis-à-vis the export that we were doing with the US. So, how this pans out is something which we are trying to understand. And we will have more clarity once these rates are notified. They have only been tweeted as of yet.

They have not been notified. So, let us see what the notification comes, what happens in between, what kind of negotiation happens. All this is there and we are yet to talk to our customers about this. Wherever we have talked yet, even they don't have much clarity as to how these things are unfolding.

Aditya Khetan: Sir, you mentioned to an earlier participant, so Malaysia is also importing in India. Sir, earlier we were with the impression like China and Japan and US. So, these are the three big players who are importing. So, Malaysia, sir, if you can quantify out of the total imports today, how much share it is and what is the prices like they are importing below the domestic players prices?

Akshat Goenka: So, Malaysia, I will just answer on prices. Earlier we never spoke about Malaysia in the context of prices because the lowest prices were set by China and Japan and Malaysia used to be higher than those prices. Malaysia has been importing into India for a lot, lot longer than China and Japan.

It has been there for ages. It is a well-established player in India and rightly so. But now after this anti-dumping has happened, we have not been able to get the full advantage of anti-dumping because Malaysia has not really raised the prices up. So, that price, around that price is becoming the new benchmark rather than the old price plus anti-dumping. So, that is the reason now I mentioned Malaysia.

Aditya Khetan:

And sir, how much would be the share of Malaysia?

Anurag Jain: I can't give you that figure often but Malaysia has always been a significant importer into India. I don't have that figure in front of me. We can share that later.

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OCCL Limited July 31, 2025

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Aditya Khetan:

Got it. Sir, just one last question. Sir, this quarter gross margins have been on the lower side despite, sir, you mentioned we have raised the sulphuric acid prices. Any particular reason why the gross margins are lower?

Anurag Jain: When? Gross margins lower where?

Aditya Khetan: In this quarter, sir. It is around 55% compared to 58%-60% in the last two to three quarters.

Anurag Jain: Oh, that's because of sulphuric acid, right? So, sulphuric acid, though it has become profitable, the margin in sulphuric acid are always lower in percentage terms. In percentage of turnover, they are lower than what they are in insoluble sulphur.

Aditya Khetan: Okay. So, despite raising the prices also, it has not been able to cover the cost. Do you mean to say that?

Anurag Jain: No. Sulphuric acid is making profits. And it's made profit and that is why we said that it has been aided by sulphuric acid. But the margin, your gross margin is 55%, it is a little lower in terms of sulphuric acid.

Aditya Khetan: Okay. Got it. Thank you, sir.

Moderator: Thank you, sir. That was the last question for today. Ladies and gentlemen, I now hand the conference over to the management for closing comments.

Akshat Goenka: I would like to thank everyone for being part of this call. We hope we have answered your questions. If you need more information, please feel free to contact us or Mr. Deven Dhruva from SGA, Investor Relations Advisor. Thank you. Moderator: Thank you, sir. On behalf of OCCL Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

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