Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: PCBL reported a stable performance in Q4FY23. Net sales for the quarter came in at Rs 1,379 crore with carbon black sales volumes at 119 kt (up 6% QoQ, 16.4% QoQ) and realisation at Rs 112/kg (down 20% QoQ largely tracking decline in crude prices). EBITDA for the quarter came in at Rs184 crore with corresponding margins at 13.4%. Consequent PAT for Q4FY23 stood at Rs102 crore, up 2% QoQ.
Views: EBITDA/tonne for the quarter was at | 15,424/tonne vs. |16k+ clocked over the past few quarters, which is believed to be more of a normalised rate vs. positive surprise in the past. The management guided for healthy demand prospects in domestic market and stable export outlook. It guided for ~500 KT carbon black sales volume for FY24E (up 12% YoY) amid new greenfield plant and expects to further grow its speciality volumes to ~50 KT vs. ~40 KT clocked in FY23. With organic growth on the anvil, increasing share of speciality grade carbon black, capital efficient business model (~15%) and inexpensive valuations (~11x PE on FY23 basis), we remain positive on the stock.
Impact: Positive