PCBL Ltd (BOM:506590) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Consolidated Sales Volume: Increased by 14% year on year to 1.48 lakh tons.

  • Consolidated Revenue from Operations: Increased by 45% to INR 2,163 crores.

  • Consolidated EBITDA: Grew by 53% year on year to INR 369 crores.

  • PBT (Profit Before Tax): Stood at INR 164 crores.

  • PAT (Profit After Tax): Stood at INR 123 crores.

  • Domestic Sales Volume: 90,219 tons.

  • International Sales Volume: 58,474 tons, with export sales volume growing 22% year on year.

  • Tire Segment Sales Volume: 82,383 tons.

  • Performance Chemical Sales Volume: 49,283 tons.

  • Specialty Sales Volume: 17,127 tons, highest level in history.

  • Power Generation: Increased by 25% to 209 million units, with external sales volume of 126 million units.

  • Average Realization: INR 3.56 per kilowatt hour.

  • H1 FY25 Consolidated Revenue: Increased by 52% year on year to INR 4,307 crores.

  • H1 FY25 Sales Volume: Increased by 19% year on year to 23 lakh 2,610 metric tons.

  • H1 FY25 Consolidated EBITDA: Up 62% year on year to INR 738 crores.

  • ACO Chemicals Q2 FY25 Revenue: INR 362 crores.

  • ACO Chemicals Q2 FY25 EBITDA: INR 50 crores.

  • ACO Chemicals Sales Volume: 24,510 tons.

  • Carbon Black Capacity: 7,70,000 metric tons per annum, with plans to expand to 8,80,000 metric tons per annum.

  • Green Power Capacity: 134 megawatts.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • PCBL Ltd (BOM:506590) reported a 14% year-on-year increase in consolidated sales volume of carbon black, reaching 1.48 lakh tons.

  • Consolidated revenue from operations surged by 45% year-on-year, driven by better realization, higher sales volume, and revenue from the recently acquired ACO Chemicals.

  • The company achieved the highest power generation and sales volume during the quarter, with power generation increasing by 25% year-on-year.

  • PCBL Ltd is amid an aggressive capacity expansion program, aiming to reach 1 million tons capacity in carbon black by FY27-28.

  • The company has executed a joint venture agreement to develop nano silicon products for lithium-ion batteries, indicating a strategic move into the battery chemical space.

Negative Points

  • The global business environment remains turbulent, with freight rates having increased by 35-40%, impacting margins.

  • Aqua Farm's volume growth was flat this quarter, attributed to ongoing cost structure improvements and global business uncertainties.

  • The company is facing challenges in the oil and gas sector in the US, leading to lower capacity utilization and margin pressure.

  • PCBL Ltd's current capacity constraints limit its ability to commit to new customers or expand existing customer contracts.

  • The company is not comfortable with its current debt levels and aims to reduce its debt-to-equity ratio, which may take additional time.