- 27 Oct 2022
- ICICIdirect Research
PCBL reports steady performance in Q2FY23PCBL - 115 Change: 0.55 (0.48 %)
PCBL reported a steady performance in Q2FY23. Net sales for the quarter came in at Rs 1,628 crore, up 15.5% QoQ with carbon black sales volumes at 114 kt (up 4% QoQ) and realisation at Rs 140/kg (up 11% QoQ). EBITDA for the quarter came in at Rs 189 crore with corresponding margins at 11.6%. Consequent PAT for Q2FY23 was at Rs 116 crore, down 7.7% QoQ.
EBITDA/tonne for the quarter was at Rs 16,570/tonne, which is the second highest in its history and down sequentially tracking the management guidance in last quarter. It is still higher than our expectations and was primarily driven by a decline in outward freight rates. Management commentary on demand prospects was cautiously optimistic with concerns raised on the export front given the global macro uncertainty. On the greenfield project, work is satisfactory with the company poised to commission the project in CY22E. With organic growth on the anvil, increasing share of speciality grade carbon black, capital efficient business model (~15%) and inexpensive valuations (~10x PE on FY24E basis), we remain positive on the stock.