PCBL Q2 Net at Rs 15cr; to pump Rs 200cr for expansion

Philips Carbon Black Ltd (PCBL), part of RP-Sanjiv Goenka Group, today reported a net profit of Rs 15.02 crore for the quarter ended September 30, 2016.
The profit is registered on the back of lower cost and interest burden.
"Finance cost and hedging cost was lower by 26 per cent during the quarter," chairman Sanjiv Goenka said here.
Sales were lower at Rs 508 crore due to decline in prices after crude slipped but margins remained unaffected, Goenka pointed.
"We have decided to go for brownfield expansion with debottlenecking at Palej and Mundhra plants at Gujarat at an outgo of Rs 200 crore," Goenka said.

With the expansion, the installed capacity will get ramped up at 5.15 lakh tonne.
The company has been able to reduce its dependence on its feedstock from US with China and other Asian sources that helped PCBL to reduce its raw material inventory to 60 days from 180 days.
Meanwhile, Goenka added there was no question of going ahead with the Vietnam greenfield project due to inverted duty structure.