PCBL Chemical (PCBL) Q4 07/08 earnings summary

Executive summary

• FY08 PAT rose to ₹89.31 crore from ₹23.53 crore; PBT reached ₹112.78 crore, supported by operational efficiency, working-capital control and lower finance costs.

• Recommended dividend of 40% of paid-up capital, absorbing ₹10.10 crore, plus ₹1.72 crore dividend tax.

Financial highlights

• Total turnover was ₹1,039.31 crore vs ₹1,002.71 crore; PBDIT was ₹152.37 crore vs ₹97.51 crore.

• Interest expense fell to ₹19.45 crore from ₹32.60 crore; depreciation was ₹20.14 crore vs ₹20.36 crore; tax expense was ₹23.47 crore vs ₹21.02 crore.

• FY08 basic EPS was ₹35.37 and diluted EPS ₹34.19, vs ₹11.75 and ₹11.47, respectively, in FY07.

• Net cash from operating activities was ₹65.31 crore; investing activities used ₹103.45 crore and financing activities provided ₹11.04 crore; closing cash was ₹15.06 crore vs ₹42.16 crore.

Outlook and guidance

• Carbon Black capacity additions of 140,000 MT were planned over 18 months, taking total capacity to 410,000 MT; Mundra was targeted for FY09 and Kochi for FY10 commissioning.

• Mundra plans included 90,000 MT annual carbon black capacity and 16 MW power; Kochi expansion included 50,000 MT and 16 MW, within an estimated ₹390 crore project funded at a 1:1 debt-equity ratio.

• Durgapur installed power capacity was expected to rise from 18.50 MW to 48.50 MW in FY09, with saleable power more than tripling from 7.50 MW; power profits were expected to increase substantially.

• Co-generation plants at Mundra and Kochi, with aggregate capacity of 32 MW, were scheduled for FY10; a Vietnam 50,000 MT carbon black and 16 MW power project remained at feasibility-study stage.