PCBL held a conference call on 10 January 2025 to discuss the results for the quarter ended December 2024 and way forward. Mr. Kaushik Roy- Managing Director, Mr. Raj Gupta- CFO, Mr. Saket Sah- Head, Investor Relations and Mr. Pankaj Kedia- Vice President - Investor Relations of the company addressed the call.
Highlights of the Concall
- PCBL Ltd. is now PCBL Chemical Ltd., reflecting evolution into a broader chemicals-focused company. This name change signifies commitment to innovation and delivering advanced solutions as company diversifies beyond carbon chemistry into new fields.
- Consolidated revenue from operations increased 21% YoY to Rs. 2,010 crore on back of higher sales volumes and also revenue from the newly acquired business of Aquapharm Chemicals. while EBITDA increased by 15% YoY to Rs. 328 crore. PBT stood at Rs. 124 crore in Q3FY25.
- PCBL reported a 5% YoY growth in sales volume to 1,43,500 tonne in Q3FY25 as compared to 1,36,108 tonne during Q3FY24. This translates into a capacity utilization of over 90% during the quarter. Consolidated EBITDA per tonne for carbon black for Q3FY25 stood at Rs. 19,868/-. 9MFY25 carbon black sales volume increased by 15% YoY backed by strong growth in export volumes
- Of the total Carbon Black sales volume, domestic sales volume stood at 84,369 tonne, while international sales volume stood at 59,132 tonne. On a segment basis, tyre accounted for 86,886 tonne. Performance chemicals reported sales volume of 42,367 tonne, while specialty sales volume was 14,247 tonne.
- Specialty Black sales volume decreased 1% to 14,280 tonne in Q3FY25 as against 14,435 tonne in Q3FY24. 9MFY25 specialty blacks sales volume increased by 13% YoY to 47,078 tonne.
- Green Power Generation decreased 5% YoY to 161 MU (million units) during Q3FY25 with external sales volume of 94 MU. PCBL had undertaken a major overhaul of its power unit in Durgapur plant during the quarter resulting in lower power generation.9MFY25 Green power generation increased by 14.6%. Net average realization from power sales stood at Rs. 3.5 per kilowatt-hour during the quarter.
- Brownfield capacity expansion of 12 MW green power is being expedited and would take Green Power capacity to 134 MW next year.
- In Q3FY25, Aquapharm Chemicals reported revenue of Rs. 328 crore with operational EBITDA of Rs. 51 crore. Capacity utilization in Aquapharm is at 70%. Sales volume stood at 22,796 tonne during the quarter.
- Aquapharm Chemicals is implementing an expansion project of 38,000 tpa which is likely to be commissioned by March 2025. Post capacity expansion in Aquapharm Chemicals, the company expects to deliver higher growth in sales volume in FY26.
- Carbon black realizations fell during the quarter primarily on account of crude price movement. Crude prices came down by about $6 compared to the previous quarterand its principal raw material is a derivative of crude, which has an impact on its realization. Also there has been a product mix change during the quarter, which has impacted the realization.
- The second and final phase of 20,000 tonne per annum (tpa) specialty chemical capacity at Mundra Plant, Gujarat has been commissioned. With this addition, Specialty Black capacity has reached 1,12,000 tpa. The total carbon black installed capacity of the company has increased to 790,000 tpa. The brownfield expansion of 30,000 tonnes in PCBL (TN) is completed, and it is currently awaiting consent to operate from the local pollution control board. The second phase of PCBL (TN) expansion of 60,000 tpa by H1FY26 would take the total installed capacity to 8,80,000 tpa in FY26.
- PCBL has been received International Sustainability and Carbon (ISCC) PLUS certification emphasizing commitment towards responsible consumption and production, circular economy and reduction of GHG emissions.
- PCBL has allotted 116 acres of land in Andhra Pradesh for setting up a new carbon black plant which can house roughly about 400,000 to 450,000 tonnes of carbon black capacity, but the capacity would come up in phases. This site is near to major ports and customers enabling seamless movement of raw material and final products. The company plans to reach capacity of 1 million tpa within next 2-3 years.
- The Indian tyre industry is expected to maintain the growth momentum driven by strong domestic demand and potential for higher export volumes.
- The demand for speciality products continues to be resilient. The end demand of carbon black from masterbatch, paints, inks and fibre maintained a stable trajectory.
- PCBL is expecting significant growth in international sales volume to European markets.
- Specialty chemicals industry in general is seeing a lot of headwinds in the form of tepid demand and also stiff competition from China.
- Nanovace Technologies Ltd. (JV Company) is setting up a large pilot plant at Palej site which will develop Nano-Silicon additives to be used in anodes of Li-Ion batteries. PCBL has executed a JV agreement with Kindia Pty Ltd. to form Nanovace Technologies Ltd. for developing nano-silicon products to be used in anodes of Li-Ion batteries.
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