- 30 Oct 2024
- ICICI Securities
PCBL LTD REPORTS HEALTHY PERFORMANCE IN Q2FY25, LONG TERM GUIDANCE UNCHANGED
News: On the consolidated basis, at PCBL, net sales for the quarter came in at ₹ 2,163 crore with carbon black sales volumes at 149 kt (up 14% YoY, down 3% QoQ) and realisation at ₹ 118/kg (up 5% QoQ). EBITDA for the quarter came in at ₹364 crore with corresponding margins at 16.8% (up 10 bps QoQ). Consequent PAT for Q2FY25 stood at ₹123 crore, flat YoY. Speciality grade carbon black sales for the quarter came in at 17K tonne (~11.5% of total sales volume, up 130 bps QoQ). Consolidated numbers also include performance of its recent acquisition i.e. Aquafarm and hence is not comparable YoY.
Views: EBITDA/tonne in the carbon black space for the quarter stood at ~₹ 21,000/tonne vs. ₹20,000 clocked Q1FY25. Sensing robust demand prospects and favourable supply side dynamics in export markets it is already executing a brownfield expansion at its Tamil Nadu plant amounting to 90 KT and is in active lookout for a new greenfield facility thereby targeting total carbon black capacity of ~10 lakh tonne by FY27E vs. 7.7 lakh tonne as on date. With organic growth on the anvil amid incremental capacities in place, increasing share of speciality grade carbon black and capital efficient business model, we remain positive on the stock. Long term investment thesis remained unchanged for the company with performance in the current quarter aligning with its long-term vision/targets.
Impact: Positive