Phillips Carbon Black Ltd (PCBL) today said its net profit for the third quarter ended December 2010 was down to Rs 30.03 crore, as compared to Rs 33.63 crore during the corresponding quarter last year.
"The net profit was down despite operating profit rose 22.5 per cent due to higher tax burden that increased during the year. Till last year, we were in MAT and now we are paying normal tax," PCBL chairman Sanjiv Goenka said today.
The company registered net sales of Rs 431.62 crore during the quarter, as compared to Rs 375.70 crore posted in the corresponding quarter last year.
Asked about his reaction to Columbian Chemicals Co going to AB Birla group, Goenka said it was a positive development for the country as more Indians are playing important roles in the global carbon black sector.
He did not divulge any details on his attempt to acquire European Evonik Industry's carbon black assets, saying his company was bound by binding legal agreement. According to reports, sale was likely to be over by end of February.
Evonik, Columbian Chemicals and Cabot Corp, the world's three largest carbon black producers, together account for about one-third of the worldwide capacity, according to a Standard & Poor's report that came in October.
Evonik, which is being advised by Barclays Capital, said last year that it planned to sell the carbon black unit, which has annual sales of about 1 billion euros and 1,700 employees.
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Goenka said the company was examining opportunities in forward integration activity of master batching as a value added product and was holding talks with the tyre companies in this regard.
Meanwhile, PCBL had received all necessary clearances for its carbon black project in Vietnam and was expecting to begin construction of the 55,000 tonne plant by March at a cost of $63 million.
The company could invest up to Rs 12,000 crore in the next three years on greenfield and expansions, including plans to enter into carbon chemicals segment.