- 20 Apr 2022
- ICICIdirect Research
PCBL REPORTS MUTED PERFORMANCE IN Q4FY22
PCBL - 366 Change: 5.35 (1.48 %)News: Net sales for the quarter were at Rs 1219 crore, up 5% QoQ primarily driven by 10% QoQ growth in carbon black realisations at ~Rs 106/kg amid ~4% QoQ drop in sales volumes at 112KT. EBITDA in Q4FY22 stood at Rs 137 crore with EBITDA/tonne at ~Rs12,167/tonne vs. ~Rs14,418/tonne clocked in Q3FY22. PAT for the quarter came in at Rs 90 crore, down 19% QoQ. Speciality grade carbon black sales volume came in steady at 9,350 tonne i.e. 8.3% of sales volume. For full year i.e. FY22, total carbon black sales volume stood at 454KT, up 17% YoY with EBITDA at Rs 656 crore (up 26% YoY) and PAT at Rs 427 crore (up 37% YoY)
Views: EBITDA/tonne came in on the lower side primarily tracking higher other expenses which included higher freight costs, CSR expenses and annual maintenance charges. Gross margin however improved QoQ indicating steady pass through of higher raw material costs to its customers. Management commentary on demand prospects as well as improvement in profitability going forward was encouraging with company well poised to commission its greenfield expansion by December 2022. Our long term investment thesis on PCBL remains intact i.e. capital efficient business model (RoCE>15%), strong B/S (Debt: Equity 0.3x), robust cash generation and growth longevity
Impact: Neutral