Omkar Speciality Chemicals Limted Q2 FY16 results

New Delhi, October 31, 2015: Started in 1983 by Mr.PravinHerlekar as a proprietaryconcern, Thane based OmkarSpeciality Chemicals Limited (OSCL) is engaged into the business of manufacturing and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. The initial installed capacity was 6 metric tonne per annum (MTPA) and over a period of time, it has been strategically increased to 4620 MTPA (as of FY14)

Starting with a single product Molybdenum Derivatives; Omkar speciality chemicals diversified its product range which now includes Iodine Compounds, Selenium Compounds, Intermediates, Resolving Agents and Others (Molybdenum, Cobalt, and Bismuth) and APIs which comprises of more than 200 products. It exports its products to about 38 countries, including regulated markets such as Europe, North America, South America, China and other Asian countries and hasa diverse customer base from different industry segments like pharmaceutical, chemical, glass, cosmetics, ceramic pigments, animal and poultry feeds etc.

The exports, as of FY14, contribute 23.8% of gross sales and OSCL intends to strategically expand this number in the future though organic growth by entering into new markets. Recently it has acquired Lasa Laboratory to enter the Active Pharmaceutical Ingredient (API) segment. Omkar Speciality Chemicals Ltd has total of nine manufacturing units of which four are located at Badlapur, three at Chiplun and one at Mahad. Omkar’s R&D team continuously strives to develop processes so as to make optimum utilization of resources and gain a competitive edge over its peers. All products undergo a strict quality check which is why it has been awarded ISO 9001:2008 for its quality control measures. The company; currently has 1100 employees.

The Company’s manufacturing facilities can produce multiple products using a combination of processes. The manufacturing infrastructure helps it change the Company’s product mix in response to changes in market demand. The diverse product mix enables Omkar to address a larger base of potential new customers in addition to its existing customers.

The company has filed for 14 application patents of which 2 have been granted and the rest awaits approval.

Dr. Omkar P. Herlekar is the Whole Time Director and the one of the Promoters of the Company. He is a Bachelor of Science and Master of Science (By Research) in Chemistry from the University of Mumbai. He has an overall experience of 7 years. He spearheads the Research & Development activities of OSCL and supervises the entire factory operations. He is also actively involved in the setting up and implementation of new manufacturing units of the Group. He has the ability to sequester a project within a vertical and then analyse it threadbare on various dimensions with elan, including strategic, financial, marketing, R&D and branding.

On the financial front Omkar Speciality Chemicals has delivered good numbers and has successfully enhanced shareholder value. The total income from operations stood at Rs240.3 crore in FY14 as compared to Rs211.7 crore in FY 13, up 13.37% (YoY). EBITDA increased to Rs42.9 crorein FY14 as against to Rs40.2 crore in FY 13, up 6.72 % (YoY). Profit after tax marginally reduced to Rs13.6crore in FY14 as against Rs20.6 crore in FY 13 (YoY). The PAT margins stood at 9.5% (FY 13) as against 5.6% (FY 14). However, the PAT margins increased by 3.7 % to 9.8% (9M FY15) from 6.1% (9MFY14)

The net-worth of the company, for FY13 stands at Rs127.1crore as compared to Rs137.2 crore in FY14. The company on the EBITDA margin front posted a healthy increase of 10%.It stood at 19.9% (9M FY15) as compared to 18.9% (9M FY14).
Corporate Comm India(CCI Newswire)