NOCIL Ltd (NOCIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you are connected for NOCIL Limited Q2 FY '27 earnings conference call. Please stay connected. The conference will begin shortly. Thank you.
Moderator: Ladies and gentlemen, good day and welcome to NOCIL Limited Q2 FY '27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of
Moderator: company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' line 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 "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. V.S. Anand, Managing Director from NOCIL Limited. Thank you and over to you, sir.
V.S. Anand (NOCIL Limited): Thank you, Ikra. Thank you and good morning to everyone. I'd like to start by expressing my appreciation for your presence today. Joining me are Mr. P. Srinivasan, our Chief Financial Officer, and our Investor Relations Advisors from SGA. I hope you have all received our investor presentation. If not, it's available in both the stock exchanges and on our company's website. When I look at the first half of this year, I believe the important point is that we have continued to make progress in a challenging business environment. We have had to navigate global uncertainty, supply-side disruptions, and competitive pressures. At the same time, we have continued to invest in strengthening NOCIL for the long term. Let me begin with a brief overview of our perform- performance. We concluded the H1 FY27 with revenue of Rs. 830 crores, a growth of 26% over the corresponding period last year. Volumes grew by 3%, supported by sustained demand across our key end markets. Domestic volumes registered single-digit growth, aided by improved demand following the implementation of GST 2.0. Export volumes also recorded single-digit growth, reflecting continued traction across international markets and the conversion of customer engagements into business opportunities. For quarter two, revenue from operations stood at Rs. 427 crores, registering a year-on-year growth of 33% and sequential growth of 6%. This was primarily driven by an increase in the average selling price. However, volumes declined by 3% year-on-year and 7% sequentially due to temporary supply-side constraints and logistical challenges arising from the geopolitical situation. While these dis- disruptions impacted our quarterly volumes, our customer engagement and underlying demand remain healthy. We have addressed the supply-side constraints and we expect the affected volumes to recover in the second half. The quarter's performance also reflects the continued competitive pressures in the market, including the impact of import dumping. Our focus remains on balancing price and volumes while protecting our competitiveness. Let me now briefly touch upon the indus- industry environment. Domestic tyre demand continued to benefit from the consumption tailwinds following GST 2.0. At the same time, the industry faced higher raw material costs, with crude oil prices rising during the quarter amid geopolitical tensions. This has had a bearing on input costs ac- across the value chain. Looking ahead, a weaker monsoon and inflationary pressures could create some near-term demand headwinds. However, the underlying industry fundamentals remain supportive, driven by healthy replacement demand, growth in OEM volumes, and favorable long-term growth drivers. We therefore remain positive on the industry's long-term prospects while recognizing that the near-term operating environment continues to be challenging. Coming back to NOCIL, I would like to highlight the progress we're making on our investments. Our brownfield TDQ expansion at Dahej is progressing towards customer approvals, which we expect over the coming months. Work on an integrated specialty rubber chemicals project is also progressing as planned. These investments are important steps in strengthening our product portfolio and manufacturing capabilities and in positioning NOCIL for future growth. Looking ahead, we remain focused on deepening customer relationships, expanding our presence in domestic and export markets, and pursuing new product opportunities. Coming to our financial year '27 outlook, as highlighted during our last earnings call, we had indicated a revenue range of Rs. 1,400 to 1,600 crores. Given our H1 performance and the current momentum, we remain confident of closing FY27 towards the upper end of this range with EBITDA margins of around 10%.
V.S. Anand (NOCIL Limited): there is any development on that in that space. With this I now invite Mr. P. Srinivasan to provide an overview of a financial performance.
P. Srinivasan (NOCIL Limited): Thank you, Mr. Anand. And good morning to everyone. Let's run through the Q2 and H1 FY27 financial, consolidated financial highlights. Sales volume, volume for Q2 FY27 was 135, taking a base of 100 SQ1 FY20. Revenue, net revenue from operations for Q2 FY27 stood at 1, 427 crores, registering a growth of 33% on Y-o-Y basis and 6% on Q-o-Q basis. For H1 FY27, net revenue from operations stood at 830 crores, registering a growth of 36% on Y-o-Y basis. EBITDA. EBITDA for Q2 FY27 stood at 36 crores, registering a growth of 61% on Y-o-Y basis, while witnessing a degrowth of 20% on Q-o-Q basis with margins standing at 8.4 percent. For H1 FY27, EBITDA stood at 81 crores, registering a growth of 54% on Y-o-Y basis, while margins standing at 9.8%. Profit Before Tax, PBT, for Q2 FY27 stood at 28 crores, registering a growth of 52% on Y-o-Y basis, while witnessing a degrowth of 24% on Q-o-Q basis. For H1 FY27, PBT stood at 65 crores, registering a growth of 57% on Y-o-Y basis. Profit After Tax, PAT, for Q2 FY27 stood at 24 crores, registering a growth of 98% on Y-o-Y basis, while witnessing a degrowth of 13% on Q-o-Q basis. For H1 FY27, PAT stood at 52 crores, registered a growth of 76% on Y-o-Y basis. With this, we would like to open the floor for question and answers.
Moderator: Thank you very much. We will now begin with the question and answer session. Anyone who wish to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Nirav Jimudia from Anvil Wealth Management Private Limited. Please go ahead.
Nirav Jimudia (Anvil Wealth Management Private Limited): Yeah, good morning, sir. Sir, a few questions. So, sir, first on the volume growth side, like last quarter you mentioned that for FY27 in the top-line assumption we have taken close to around 10% volume growth. So, just going by that number, let's say for achieving this sort of numbers for FY27 for H2 FY27, on an indexation basis, we need to do a volume at a rate of around 165. So, how confident are we in terms of achieving these numbers for second half and if you can give some qualitative understanding about the volume growth from where this volume growth could accrue to us, that would be very helpful.
V.S. Anand (NOCIL Limited): Yeah. Thank you, Nirav. Yes, yes, you're right about the indication we have given on the volume growth and we're quite positive that we will be able to still stay in the 8 to 10% growth in terms of volumes. And I'm I'm positive that from an index point that you touched, I would say, at least in the 160 range, should be there, 160 to 165, yeah.
Nirav Jimudia (Anvil Wealth Management Private Limited): Correct, yeah.
V.S. Anand (NOCIL Limited): And this, again, coming back to your to the additional point about the the quality of the growth. So, it's going to come from a combination of both domestic as well as the the international markets. And that's why we are we're quite positive. Yeah.
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