PHILLIPS CARBON BLACK

Part of the illustrious RP-Sanjiv Goenka Group of Companies, Phillips Carbon Black (PCBL) is the eighth largest carbon black manufacturer in the world and the largest manufacturer and supplier of carbon black in the country. Its main customers come from the tyre industry, power sector, elastomer, plastic, paints and ink manufacturing industries.

Its performance for Q1FY17 was driven more by lower costs and interest outgo, despite a 10% (YoY) drop in net sales at Rs.478 crore, the company ended the quarter with a 4 times jump up in net profit at Rs.12 crore. Raw material costs were down 20% and total costs came down 13%. Consequently, EBITDA was up 26% at Rs.53 crore while margins improved from 8% to 11%. Interest costs were down 46%.

The company’s equity is at Rs.34.47 crore and EPS for the quarter came in at Rs.3.69 (FV of Rs.10). Promoters hold 53.56%, FIIs hold 6.52% stake and interestingly, the Kerala State Industrial Development has a 1.36% stake.