PCBL Chemical (PCBL) Q4 02/03 earnings summary

Executive summary

• FY03 turnover grew nearly 10% and profit after tax rose 244% YoY to Rs 18.60 crore, supported by higher sales realizations and lower financing costs.

• Production increased over 11% to nearly 150,000 MTA; exports grew over 32% to more than Rs 53 crore, preserving the position as India’s largest carbon black exporter.

• A 25% dividend, equal to Rs 2.50 per equity share, was recommended for the year.

Financial highlights

• Sales were Rs 54,313.46 lakh vs Rs 49,449.17 lakh; PBT was Rs 24.34 crore vs Rs 9.90 crore, up 146% YoY.

• PBDIT before bad-debt write-offs reached Rs 67.83 crore; after Rs 12.23 crore of write-offs, PBDIT was Rs 55.60 crore, up 19% YoY.

• PAT rose to Rs 18.60 crore from Rs 5.40 crore; basic and diluted EPS were Rs 10.48 vs Rs 3.05.

• Interest expense fell 23% YoY to Rs 20.56 crore; profit before depreciation and tax increased 75% to Rs 35.04 crore.

Outlook and guidance

• Baroda plant expansion will add 70,000 MTPA; production lines were expected to start by end-Q2 FY04, with a 12 MW power plant targeted by end-Q3 FY04.

• Export growth and continued strength in domestic tyre production were expected to support carbon black demand and growth in FY04.

• ERP implementation was expected to be operational by Q4 FY04; an additional thrust on exports was planned as capacity expands.