Following the company’s 37% YoY earnings loss in Q3FY25, PCBL shares dropped 11.35% to ₹346.60. Growing expenditures hampered profitability, even though sales increased by 21.3%. The business wants to reach a total carbon black capacity of one million MTPA in two to three years.
Stock Market Today:
Leading carbon black maker PCBL (previously Phillips Carbon Black) saw its shares fall 11.35% in early trading on January 13 to a 5-month low of ₹346.60 per share following the announcement of the company’s lower-than-expected Q3FY25 earnings after market hours on Friday.
A significant increase in operational expenditures was the leading cause of PCBL’s consolidated net profit, falling 37% year-on-year (YoY) to 93 crore in Q3FY25 from 148 crore the same time the previous year. The quarter’s total costs increased 23% yearly to ₹1,693 crore from ₹1,378 crore in Q3FY24. Notably, according to the regulatory filing, employee benefit expenditures rose from ₹61 crore in Q3FY24 to ₹105 crore, while the financing cost soared 254% YoY to ₹117 crore.
Although it had a 7% sequential dip, PCBL recorded a 21.3% YoY gain in revenue from operations, which came to ₹2,010 crore. Operating performance was mixed, with EBITDA down from ₹364 crore in Q2FY25 to ₹317 crore, up from ₹279 crore YoY. The operational profit margin has shrunk from 17% in Q3FY24 to 16%.
PCBL recorded a 5% YoY increase in sales volumes, going from 136,108 MT in Q3FY24 to 143,500 MT in Q3FY25. In Q3 of FY25, the consolidated EBITDA per metric ton (MT) of carbon black was ₹19,868.
Updates on PCB’s capacity increase for specialized chemicals were also given. It claimed that its total installed capacity has increased to 790,000 MTPA with the commissioning of the second and last phase of its 20,000 MTPA specialty chemical capacity at the Mundra Plant in Gujarat.
Additionally, the business announced that it had obtained International Sustainability and Carbon (ISCC) PLUS accreditation, highlighting its dedication to circular economy principles, responsible production, consumption, and reducing greenhouse gas (GHG) emissions.
Additionally, 116 acres of land in Andhra Pradesh were given to PCBL to construct a new carbon black factory. It is anticipated that the advantageous position close to essential ports and consumer centers would make it easier for raw materials and completed goods to flow freely. The business expects to attain a total carbon black capacity of one million MTPA within two to three years.
38% Decrease in Stock from the Last Peak:
The stock has been steadily declining after hitting its highest point ever, ₹584.40 a share. It has now corrected 38% from its top with today’s fall. The stock had a sharp 29% decrease in October alone, which has dropped 20% more this month. The company continues to provide multi-bagger returns despite the recent slump; it has increased 191% over the previous three years and an astounding 453% over the last five.
