On a consolidated basis, the carbon black maker recorded a 25% fall in net profit to Rs 58.09 crore on 23.07% decline in revenue from operations to Rs 663.86 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) fell 29.21% year-year (YoY) to Rs 73 crore in Q2 September 2020. Total tax expense fell 41.7% to Rs 14.92 crore in Q2 September 2020 over Q2 September 2019. The result was announced during market hours today, 15 October 2020.
The earnings were impacted in the backdrop of the continued global recession in the automobile industry further aggravated by the COVID-19 pandemic.
The company's additional 32,000 tonne capacity at Palej in Gujarat is expected to be commissioned by FY21. This consist of two lines, both for specialty black and also a 7 MW co-generation power plant.
The greenfield project of about 1,50,000 MT for manufacture of various grades of carbon black and 25 MW of co-generation power over 60 acres of land in Tamil Nadu is progressing strategically. Total investment is estimated to be in excess of Rs 600 crore and is expected to be commissioned by 2023. PCBL (TN), a wholly owned subsidiary of Phillips Carbon Black has been incorporated on 29 September 2020.
Further, the company's 7 MW co-generation power plant in Kochi (Kerala) is expected to be commissioned by 2021.
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Shares of Phillips Carbon Black were up 3.59% at Rs 135.7 on BSE. The stock fell 3.1% in the past two sessions.
Phillips Carbon Black (PCBL), a part of RP-Sanjiv Goenka Group, and one of the leading global players, is India's largest Carbon Black manufacturer with four plants at Durgapur, Palej, Kochi and Mundra.
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