PCBL Chemical (PCBL) Q4 97/98 earnings summary

Executive summary

• FY ended 30 Sep 1998: sales rose to Rs. 30,169.95 lakh from Rs. 28,225.16 lakh, while profit after tax fell to Rs. 258.58 lakh from Rs. 833.06 lakh.

• Amalgamation and acquired manufacturing capacity expanded the operating footprint; combined operations represented 3% of world capacity and 55% of India’s carbon black market.

Financial highlights

• Turnover Rs. 30,169.95 lakh; profit before tax Rs. 287.08 lakh; profit after tax Rs. 258.58 lakh, versus Rs. 1,428.06 lakh and Rs. 833.06 lakh, respectively, in the prior year.

• Profit before interest, depreciation and taxes was Rs. 3,635.37 lakh versus Rs. 4,451.98 lakh; gross profit was Rs. 1,010.62 lakh versus Rs. 1,950.01 lakh.

• Raw material costs included Rs. 605.10 lakh of foreign-exchange loss; net foreign-exchange loss on export receivables and borrowings was Rs. 172.68 lakh.

Outlook and guidance

• Automobile-sector signs of revival were improving conditions from October 1998; sustaining the recovery depended on maintaining and increasing the safeguard duty on carbon black imports.

• Cost-reduction work with Andersen Consulting was intended to strengthen regional cost leadership amid ongoing price pressure.