Phillips Carbon Black Ltd (PCBL), an RPG group company, expects higher growth during the current year owing to higher demand for tyres with the entry of new players in the automobile sector, which in turn would broaden the carbon black market.
With signs of recovery in south-east Asian economies, the pressure on domestic prices due to cheap imports is likely to be less. The cost-control exercise, being undertaken with the help of Andersen Consulting, is likely to contribute to overall cost savings.
PCBL's turnover in 1998-99 was Rs 341.38 crore against Rs 301.69 crore, while net profit went up by 66.2 per cent to Rs 3.82 crore from Rs 2.59 crore during the period.
Operating expenses, as a percentage of turnover, came down by 6.5 per cent. The cost of financing per tonne of production was reduced by 5 per cent. Its plant utilisation capacity went up to 66 per cent from 57 per cent in the previous year.
The directors have recommended a net dividend of 10 per cent. PCBL board has decided to appoint Sudhir Sahgal as the managing director of the company for a period of five years with effect from January 1, 2000 to December 31, 2004. The company will seek shareholders' approval at the forthcoming annual general meeting to this end.
