PCBL Chemical (PCBL) Q1 24/25 earnings summary

Executive summary

• Achieved record operational and financial performance in Q1 FY25, with consolidated revenue rising 59% year-over-year to INR 2,144 crore and EBITDA up 72% to INR 369 crore, driven by strong growth in Carbon Black and Aquapharm segments.

• Consolidated sales volume in Carbon Black reached 1,53,918 tons, up 25% year-over-year; export sales volume surged 56%, with significant growth in European markets due to the Russia import ban.

• Aquapharm Chemicals contributed INR 359 crore in revenue and INR 55 crore in operational EBITDA, with 75% capacity utilization and ongoing efficiency improvements.

• Specialty Black sales volume grew 33% year-over-year to 15,671 tons, the highest ever.

• Patent granted for Hybrid Carbon Black grade with graphene, enhancing tire and rubber compound performance.

Financial highlights

• Profit after tax for Q1 FY25 was INR 118 crore, up from INR 109 crore year-over-year; PBT stood at INR 164 crore.

• EBITDA per metric ton in Carbon Black was INR 20,861, up from INR 20,018 in FY24.

• Operating EBITDA margin improved to 17% from 16% year-over-year.

• Power generation increased 24% year-over-year to 194 million units, with external sales of 116 million units.

• Diluted EPS increased to INR 3.1 from INR 2.89 year-over-year.

Outlook and guidance

• Carbon Black business expected to deliver 9.5%-10% CAGR volume growth over the next 4-5 years.

• Plans to reach 1 million MTPA capacity in two years, with multiple greenfield and brownfield expansions underway.

• Aquapharm volume growth targeted at 20%-25% annually from FY26, with margin improvement expected as new lines come online.

• Long-term PAT target of INR 2,500 crore by FY29, supported by capacity expansion and margin gains.

• The group is evaluating the impact of amendments proposed through the Finance Bill, 2024.