>PHILLIPS CARBON BLACK (ANGEL BROKING)

PERFORMANCE HIGHLIGHTS

■ Top-line declines 2.7%: Phillips Carbon Black (PCBL) reported a marginal 2.7% yoy decline in its Top-line to Rs291.2cr (Rs299.3cr), in 1QFY2010, despite a 1% increase in the Sales Volume. The company’s sales volume increased by 26% qoq. The imposition of a provisional anti-dumping duty up to $195/MT resulted in the reduced import of carbon black, thereby benefitting the domestic players. The sale of external power increased to Rs9cr (Rs4cr), with the commissioning of the 30MW power generation plant at Durgapur, which again boosted the Top-line as well as the margins.

■ OPM at 10.9%: The company recorded a 170bps expansion in the OPM during the quarter, to 10.9%. The improved performance on the operating front was primarily on account of an 11.3% decline in the Raw Material Cost to Rs182.7cr. PCBL’s Operating Profit for the quarter stood at Rs31.6cr (Rs27.5cr), up by 15.2% yoy.

■ Net Profit at Rs20.5cr: PCBL has managed to deliver a good performance on the Bottom-line front. Although the company’s Net Profit was down 10.6% yoy, the performance in the current quarter is extremely comforting when seen in light of its 4QFY2009 performance. In 4QFY2009, the company incurred a huge loss of Rs57.1cr on a Top-line of Rs241.5cr. We
expect the company to perform well in the coming quarters, on account of the recovery seen in the domestic auto industry.

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