💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 33.7% YoY to INR 108.3 Cr in FY25. Continuing operations revenue for standalone entity grew 54.3% to INR 22.34 Cr. General Engineering Products (Duncan Engineering) revenue grew 25.7% to INR 70.10 Cr in FY23.

Geographic Revenue Split

The company maintains a dominant 55-60% market share in the domestic Insoluble Sulphur market and approximately 10% share in the global market.

Profitability Margins

Consolidated OPBDITA margin declined from 22.8% in FY24 to 12.1% in FY25. Standalone Net Profit margin fell sharply from 51.50% to 4.41% in FY25 due to extra tax on restatement of investment income.

EBITDA Margin

Standalone EBITDA margin was 26% in FY25 compared to 58% in FY24, primarily due to reduced income from liquid funds following the demerger of the chemical business.

Capital Expenditure

The company had net debt of INR 21.7 Cr at the end of FY23 despite significant historical capex. Future capex is planned to be restricted to maintenance and high-payback projects.

Credit Rating & Borrowing

ICRA A- (Watch with negative implications) for subsidiary Duncan Engineering. Consolidated interest coverage ratio was 18.0x in FY25, down from 166.2x in FY24.

⚙️ Operational Drivers

Raw Materials

Sulphur (key for Insoluble Sulphur), gold, silver, and agricultural inputs (for trading business). Sulphur price volatility led to a 20.8% increase in realizations in FY23.

Capacity Expansion

Current capacity for Insoluble Sulphur supports a 55-60% domestic market share. Planned expansion focuses on maintenance capex to sustain current operations post-demerger.

Raw Material Costs

Raw material costs for standalone operations were INR 137.4 Cr in FY24. Realizations rose 20.8% in FY23 to offset a steep hike in raw material prices.

📈 Strategic Growth

Expected Growth Rate

Not disclosed%

Growth Strategy

Achieving growth through value unlocking via the demerger of the Chemical Business into OCCL Ltd, initiating a new commodity trading business (gold, silver, agri), and focusing on the 50.01% subsidiary Duncan Engineering for pneumatic products.

Products & Services

Insoluble Sulphur, Acid, Oleum (Chemical Business), Pneumatic air cylinders, valves, and accessories (General Engineering), and Commodity Trading services.

Brand Portfolio

Duncan Engineering, AG Ventures Limited (formerly Oriental Carbon & Chemicals Limited).

New Products/Services

Initiation of commodity trading business focusing on gold, silver, and agricultural inputs to diversify revenue streams.

Market Expansion

Expansion into commodity trading and leveraging Duncan Engineering's established position in the pneumatic products market.

Market Share & Ranking

Ranked as the sole domestic manufacturer of Insoluble Sulphur with 55-60% domestic market share.

Strategic Alliances

Duncan Engineering Limited is a joint venture between Schrader Bridgeport International and the Duncan Group (Goenka family).

🌍 External Factors

Industry Trends

Growing demand for sustainable enterprises and green technologies; robust IPO pipeline in the consumer market signaling liquidity opportunities.

Competitive Landscape

Maintains leadership against global competitors by being a preferred supplier to major tyre manufacturers.

Competitive Moat

Durable moat as the sole domestic manufacturer of Insoluble Sulphur in India, providing significant cost and supply chain advantages over imports.

Macro Economic Sensitivity

Sensitive to global tyre industry demand and volatility in the startup investment ecosystem.

Consumer Behavior

Rising disposable incomes are boosting demand for scalable consumer brands within the company's investment portfolio.

Geopolitical Risks

Geo-political tensions impact raw material prices and freight costs, causing margin pressure as seen in FY22 and FY23.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with applicable labor laws and SEBI Listing Regulations; demerger scheme subject to NCLT and regulatory approvals.

Taxation Policy Impact

Standalone PAT was impacted by extra tax restatement on investment income, reducing net profit to INR 13.1 Cr in FY25.

Legal Contingencies

An appeal has been filed in NCLAT regarding the NCLT order that changed the appointed date of the demerger scheme.

⚠️ Risk Analysis

Key Uncertainties

Funding volatility and valuation corrections in the startup sector could impact exit timelines and portfolio performance by over 20%.

Geographic Concentration Risk

High domestic concentration with 55-60% of revenue linked to the Indian tyre market.

Technology Obsolescence Risk

Adoption of digital tools to streamline HR and operational processes to mitigate traditional process obsolescence.

Credit & Counterparty Risk

Strong liquidity position backed by sizeable unencumbered cash balances and unutilised fund-based limits.