- 22 Jul 2022
- ICICIdirect Research
Reports robust performance for Q1FY23PCBL - 116 Change: 1.30 (1.13 %)
News: PCBL reported robust performance in Q1FY23. Net sales for the quarter came in at 1,409 crore, up 16% QoQ with carbon black sales volumes at 109kt (down 3% QoQ) and realisation at Rs 126/kg (up 18% QoQ). EBITDA for the quarter came in at Rs196 crore with corresponding margins at 13.9% (up 270 bps QoQ). Consequent PAT for Q1FY23 stood at Rs126 crore, up 39% QoQ.
Views: EBITDA/tonne for the quarter stood at ~Rs 18,000/tonne, highest ever in its history primarily driven by lucrative spot sales amidst tight demand supply situation in the market place. Management commentary on demand prospects was cautiously optimistic with EBITDA/tonne expected to moderate with our full year expectation at >Rs15,000/tonne (up by ~Rs 1,000/tonne on YoY basis). On the greenfield project, work is satisfactory with 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.