• Net Sales were Rs. 357 crore, representing a growth of 3.0% as compared to Q2FY'14. The increase was driven by higher sales volume combined with better realizations in the key business segments. Total sales volume increased 4.8% y-o-y. Coal tar Pitch (CTP) sales volume increased by 8.4% y-o-y. Realizations were also higher for CTP and Naphthalene

• Total volumes of all products sold together was 65622 tonne in Q2Fy'15 compared to 62645 tonne in Q2FY'14.

• Average realizations was Rs 54400 per tonne in Q2FY'15 compared to Rs 55329 per tonne in Q2FY'14.

• Average cost of raw material consumed was Rs 32133 per tonne in Q2FY'5 compared to Rs 31250 per tonne in Q2FY'14

• Current quarter capacity utilizations was 86%. The company had ramp up its capacity to 400000 tonne in Q4FY'14 from 250000 tonne. The company expects its capacity utilization to touch 100% by Q4FY'15

• EBITDA was Rs. 41.7 crore for Q2FY'15, recording a decrease of (13.3)% compared to the same period last year. EBITDA margin was at 11.7%, a decrease of 220 bps compared to Q2FY'14. Operating Profit (EBIT) during the quarter was Rs. 27.4 crore with margin of 7.7%. Other Income / (Loss) increased from Rs. (33.4) crore to Rs. (3.6) crore.

• The company had a net loss of Rs. (3.3) crore as compared to a loss of Rs. 28.7 crore in Q2FY'14. PAT performance was impacted by foreign currency gain / (loss) of Rs. (54.2) crore in Q2FY'14 as compared to Rs. (12.0) crore in the current quarter. The company has revised the useful lives of fixed assets in accordance with the provisions of Schedule II to the Companies Act, 2013. As a result, depreciation for Q2FY'15 is lower by Rs. 3.2 crore

• Q2FY'15 PAT adjusted for foreign currency gain / (loss) and other income was Rs. 6.8 crore for the quarter at 1.9% margin. Adjusted PAT was affected due to lower operating margins and higher tax incidence.

• As of September 30, 2014, the company had total debt of Rs. 1113.7 crore and Cash & Cash Equivalents of Rs. 43.0 crore, resulting in a net debt of Rs. 1049.7 crore. Net debt decreased by around Rs 100 crore from previous quarter.

• The company has reduced foreign currency loan by 11% and rupee loan by 24% from Q4FY'14.

• Net Worth of the company was Rs. 848.5 crore and Net Debt / Equity ratio was 1.20x.

• The overall demand outlook for the Indian automobile sector is expected to become more favourable in the near term particularly for the Passenger Vehicle and Two Wheeler segments. The Commercial Vehicle market is showing early signs of a recovery as industrial activity has started to pick up. Two Wheeler demand is expected to stay buoyant supported by the middle class with rising disposable incomes OEMs are continuing with new product launches to further attract customers and gain market share.

• The global steel demand has moderated during the quarter due to decelerating growth in China and Europe which has led to lower price realizations and subdued volume growth

• Overcapacity and margin pressures have affected the near term outlook of the global steel sector, although the global steel industry is perceived to have bottomed out. The global steel demand is expected to grow at 2.0% in 2014. In 2015, it is forecast that world steel demand will grow by another 2.0% and will reach 1,594 Mt. However, the Indian steel industry has been forecasted to grow by 3.4% to 76.2 MT in 2014 and 6.0% in 2015, following a growth of 1.8% in 2013

• The domestic Aluminium industry is expected to grow further with the ongoing expansions by the majority of the aluminium smelters in India. The Middle East's aluminium industry is also entering into a stage of strong expansion, both in primary production and downstream development

"Last quarter has been challenging from a macro perspective but we are pleased with our operational performance as we prepare ourselves for the global economic recovery. The global steel demand dwindled with weaker than expected performance in the emerging and developing economies, particularly due to the decelerating growth in China. However, the outlook for the steel industry remains positive considering the improvement in the business sentiment globally, with growth in emerging economies and stabilization of the developed countries, which are poised to bounce back in the near term.

The auto industry has been showing gradual recovery in the last few months and is expected to perform well due to multiple factors including policy initiatives by the government, expected interest rates decline, rising disposable incomes and revival of industrial production. The aluminium industry is expected to grow owing to the improving Indian economic outlook further benefited by rising LME prices.

Given the challenges and opportunities alike, we are geared for growth and are focused on winning new clients, strengthening our existing relationships and streamlining operations."