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PCBL Ltd: Reports robust volume growth in Q1FY25, sticks to its guidance of aggressive expansion plan
- On the consolidated basis, at PCBL, net sales for the quarter came in at ₹ 2,144 crore with carbon black sales volumes at 154 kt (up 8% QoQ, 25% YoY) and realisation at ₹ 113/kg (down 2% QoQ).
- EBITDA for the quarter came in at ₹358 crore (highest ever) with corresponding margins at 16.7%. Consequent PAT for Q1FY25 stood at ₹118 crore, up 8% YoY.
- Speciality grade carbon black sales for the quarter came in at 15.7K tonne (~10.2% of total sales volume). Consolidated numbers also include full quarter performance of its recent acquisition i.e. Aquafarm and hence is not comparable QoQ & YoY.
- EBITDA/tonne in the carbon black space for the quarter stood at ~₹ 20,000/tonne vs. ₹21,000 clocked Q4FY24. The company realised sales volume of ~28Kt from its new greenfield plant at Tamil Nadu for Q1FY25. Sensing robust demand prospects and favourable supply side dynamics in export markets it is already executing a brownfield expansion at its Tamil Nadu plant amounting to 90 KT and is in active lookout for a new greenfield facility thereby targeting total carbon black capacity of ~10 lakh tonne by FY26/27 vs. 7.7 lakh tonne as on date.
- With organic growth on the anvil amid incremental capacities in place, increasing share of speciality grade carbon black and capital efficient business model, we remain positive on the stock.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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