Phillips Carbon Black Ltd., India’s largest carbon black manufacturer announced its results for the second quarter ended September 30, 2020.
Q2 Results- QoQ
The company’s net profit grew 2187% to Rs 58.09 crores ($7.9 million) for the period ended September 30, 2020 as against net profit of Rs 2.54 crores ($0.35 million) for the previous quarter.
Net sales increased 84% to Rs 665.37 crores ($90.6 million) during the period ended September 30, 2020 as compared to Rs 362.41 crores ($49.4 million) during the previous quarter.
The company saw recovery of growth in sales as domestic demand from automobile industry picked-up with the government’s gradual relaxation of the pandemic lockdowns during the quarter.
Q2 Results- YoY
The company’s net profit declined 25.1% to Rs 58.09 crores ($7.9 million) for the period ended September 30, 2020 as against net profit of Rs 77.51 crores ($10.6 million) for the prior-year quarter.
Net sales declined 23% to Rs 665.37 crores ($90.6 million) during the period ended September 30, 2020 as compared to Rs 868.61 crores ($118.3 million) during the prior-year quarter.
Half-Year Results- YoY
The company’s net profit declined 58% to Rs 60.63 crores ($8.3 million) for the 6 months period ended September 30, 2020 as against net profit of Rs 144.33 crores ($19.7 million) for the prior-year 6 months period.
Net sales dropped 43% to Rs 1027.78 crores ($140 million) during the 6 months period ended Septem-ber 30, 2020 as compared to Rs 1788.49 crores ($243.6 million) during the prior-year 6 months period.
Capacity Expansion Update
The additional 32,000 tonne capacity at Palej in Gujarat is expected to be commissioned by FY’21. This consists of two lines, both for specialty black and also a 7MW co-generation power plant.
The greenfield project of about 1,50,000 MT for manufacture of various grades of carbon black and 25 MW of co-generation power over 60 acres of land in Tamilnadu is progressing strategically. Total investment is estimated to be in excess of Rs 600 crores ($81.7 million) and is expected to be commissioned by 2023.
PCBL (TN) LIMITED, a wholly owned subsidiary of Phillips Carbon Black Limited has been incorporated on 29 Spetember, 2020.