- 16 Jan 2024
- ICICI Securities
THE GOOD GETS BETTER, REPORTS RECORD PERFORMANCE IN Q3FY24
PCBL - 395 Change: 3.60 (0.92 %)News: PCBL reported robust performance in Q3FY24. On the consolidated basis, net sales for the quarter came in at ₹ 1,657 crore with carbon black sales volumes at 136 kt (up 5% QoQ, 33% YoY) and realisation at ₹ 119/kg (up 7% QoQ). EBITDA for the quarter came in at ₹279 crore (highest ever) with corresponding margins at 16.8% (up 80 bps QoQ). Consequent PAT for Q3FY24 stood at ₹148 crore, up 20% QoQ. Speciality grade carbon black sales for the quarter came in at 14.4K tonne (~11% of total sales volume, marginally declining on QoQ basis). PCBL also declared interim dividend of ₹ 5.5/share.
Views: EBITDA/tonne for the quarter stood at ~₹ 20,500/tonne vs. ₹16.5k clocked in FY23 and ₹18,300/tonne clocked in Q2FY24 which was the key positive surprise from the results. The company realised sales volume of ~16,500 tonne from its new greenfield plant at Tamil Nadu for Q3FY24 and expects it to ramp up further (reached 50% capacity utilisation in Q3FY24). With organic growth on the anvil amid incremental capacities in place, increasing share of speciality grade carbon black, capital efficient business model (RoCE at 15%+) and inexpensive acquisitions in speciality chemicals domain, we remain positive on stock.
Impact: Positive