PCBL hosted a conference call on July 21,2022. In the conference call the company was represented by Mr Kaushik Roy-Managing Director and Mr Rajat Gupta- CFO.

Key Highlights of the call

In Q1FY2023, total volumes stood at 109377 MT of which 77097MT was domestic sales and 32280, MT was export sales.

Of the total sales volume, 77650 Mt was tyre segment volume, 21860 Mt was performance chemical volume and 9867 MT was specialty chemical.

Revenues of the company stood at Rs 1409 cr in Q3FY2023 up 40% YoY.

EBITDA increased by 27% YoY to Rs 205 cr and EBITDA/MT increased to Rs 18832/MT.

PAT increased by 21% YoY to Rs 106 cr.

Power Generation increased 144 million units (increase in volumes is also due to addition of 2 CPP plants)during the quarter with external sales volume of 86 million unit. Rising demand for power and increase in power tariffs, the company's average realization increased from Rs 2.65/ Kw to Rs 4.06/kw.

On-going Russia- Ukraine war led to Russia not able to supply to Rest of the World which led to increase in prices However, the situation is reversing. High inflation and increasing interest rate scenario has led to decline in overall demand.

Capacity addition: The company is adding 150000 MT capacity of carbon black in Tamil Nadu is progressing well and is expected to be commissioned in Dec 2022.

Brown field expansion of one line at Mundra with 20,000 MT capacity is progressing well and is expected to be commissioned in last quarter of FY2023. The power generation capacity will increase to 98 MW with the 7 MW CPP getting added in Kochi in next couple of months.

CAPEX: The company plans to incur capex of Rs 900-1000 cr in FY2023 and Rs 200-250 cr in Fy 2024 including the second phase in Mundra

Key focus areas: Key focus areas of the company include capacity addition through setting up of green field plant in Chennai and Brown field plant in Mundra; increase in specialty portfolio through research and development; increase in exports which now contributes around 30% of the revenue setting up of ware house facilities and other initiatives to reach out to customers easily; digitization which will improve efficiency, productivity and profitability and focus on ESG.

The company expects incremental volume of 35,000-40000 MT in FY 2023 and 50000 MT in FY2024 unless there is any natural calamity.

Outlook: The price and demand might be volatile in short term but the company expects steady growth in volumes in the long run.