PCBL Limited

NSE:PCBL
Q3 FY2022 2023-02-08
SALES VOLUME: 116,594
Sales volume: 116,594 metric tonnes (highest ever)
YEAR-TO-DATE SALES: RS.
Year-to-date sales: Rs. 3,228 Crores (up 80% YoY)
PROFIT AFTER TAX:
Profit after tax: Rs. 337 Crores (up 82% YoY)
EBITDA MARGIN: 15%
EBITDA margin: 15% (slight reduction due to export costs)
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Financial Performance

sales growth financial performance
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The year-to-date nine-month FY2022 sales stood at Rs.3228 Crores against Rs.1793 Crores in previous year, which is up by 80%.
This significant increase in sales reflects strong operational performance and recovery in demand across segments.
B. L. Chandak, Executive Director
Sales
Positive High Confidence
profit growth financial performance
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Profit after tax in nine months was Rs.337 Crores against Rs.185 Crores in the last financial year.
This increase in profit indicates effective cost management and operational efficiency despite challenges.
B. L. Chandak, Executive Director
Profit After Tax
Positive High Confidence
margins cost pressures
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EBITDA margin reduced slightly to 15% primarily on account of higher sales in export market where container freight cost was quite high resulting in lower margins.
The reduction in EBITDA margin highlights the impact of external cost pressures, particularly in logistics, on profitability.
B. L. Chandak, Executive Director
EBITDA Margin
Neutral Moderate Confidence
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Business Operations

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sales volume operational performance
PCBL achieved highest ever sales volume of 116594 metric tonnes during the quarter.
This record sales volume demonstrates the company's strong operational capabilities and market demand.
B. L. Chandak, Executive Director
Sales Volume
Positive High Confidence
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export growth market demand
Export sales jumped by 18% on Q-o-Q and reflect a very strong international demand.
The growth in export sales indicates PCBL's competitive position in the international market and its ability to meet demand.
B. L. Chandak, Executive Director
Export Sales Growth
Positive High Confidence
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Growth Initiatives

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expansion production capacity
Greenfield project of 1.5 lakh metric tonnes carbon black and 24 megawatt of CPP in Tamil Nadu is progressing well.
This expansion project is crucial for increasing production capacity and meeting growing demand.
B. L. Chandak, Executive Director
Positive High Confidence
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brownfield expansion product diversification
We have also initiated work from Brownfield expansion of 40,000 metric tonnes of specialty lines at Mundra.
This initiative reflects the company's commitment to diversifying its product offerings and enhancing its market position.
B. L. Chandak, Executive Director
Positive High Confidence
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Market Dynamics

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competition market opportunity
Consolidation in Chinese carbon black industry has opened up a large volume window of multiyear opportunity for us.
This consolidation presents a strategic opportunity for PCBL to capture market share and grow rapidly.
B. L. Chandak, Executive Director
Positive High Confidence
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international demand market trends
Demand for carbon black in the international market remains strong where PCBL has been able to increase the volume in the market.
The strong international demand for carbon black presents significant growth opportunities for PCBL.
B. L. Chandak, Executive Director
Positive High Confidence
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Future Outlook

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future demand market recovery
With gradual improvement in supply chain conditions, semiconductor availability and vaccination drive, we are likely to witness good demand traction in the domestic market.
Management is optimistic about future demand recovery, which could lead to improved sales performance.
B. L. Chandak, Executive Director
Positive High Confidence
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supply chain issues OEM production
In the domestic market, we witnessed demand softness due to supply chain issues and semiconductor shortages impacting OEM production.
These challenges have affected sales but are expected to create pent-up demand in the future.
B. L. Chandak, Executive Director
Negative Moderate Confidence