Despite fall in carbon black prices, PCBL clocks in 5 pc revenue growth
The Board of Directors of Phillips Carbon Black Limited (PCBL) – an RP-Sanjiv Goenka company – after releasing their financial results for the quarter ended December 2016, stated, the company has recorded a revenue growth of 5 per cent in sales despite fall in carbon black prices, with an overall volume growth of around 300 percent over a period of three years.
The group focused on maintaining and protecting efficient returns, which has reflected in its latest production results.
India’s largest black manufacturer, PCBL, also recorded a sales volume growth of 20 per cent during quarter over corresponding quarter, resulting in a sustained demand growth in the Indian market.
Due to improved plant performance, the capacity utilisation increased and touched 95 per cent, which was at 80 per cent in the previous financial year.
PCBL’s current earnings – before interest, tax, depreciation and amortization (EBITDA) – was 16 per cent in third quarter of 2015-16.
The company has registered its Profit Before Tax (PBT) of Rs 42.2 crore as against Rs 14.2 crore recorded in the third quarter of 2015-16, and Profit After Tax (PAT) of Rs 17.5 crore as against Rs 5.1 crore for recorded in third quarter of 2015-16.
Although PCBL is currently under Minimum Alternate Tax and is subjected to a high tax rate of 21.35 per cent on PBT, it did not have any cash flow impact because of the “Deferred Tax” adjustment as per Indian generally accepted accounting principles (GAAP).
The members asserted that this segment continues to be one of the most important areas of the company with further expansion of product portfolio as well as capacity in near future. The company also highlighted significant achievements for both rubber and non-rubber applications, while pointing out continuous improvement in manufacturing, procurement and financing efficiencies.