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PCBL Ltd: Reports robust volume growth in Q1FY25, sticks to its guidance of aggressive expansion plan

ICICIdirect Research 09 Aug 2024 DISCLAIMER
  • 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.
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