hmmm… my understanding has been that coal tar distillation invariably produces all the below:
Coal Tar Pitch (used for production of needle coke in graphite electrodes)
Carbon Black Oil (used as feedstock for production of carbon black)
other chemicals (naphthalene, BTX etc.)
So, it is not like you can divert Coal Tar separately for exclusive production of Coal Tar Pitch only (in turn needle coke only). Distillation will invariably produce Carbon Black Oil (feedstock) and other chemicals as well.
But I might be wrong. Thanks.
Philip has come down frm 1090 to 910 now…Have scouted for some reason however not be able to find it…Can any one on the forum shed some light on OR is it profit booking as most are putting it…I understand that there are comparisons with HEG/Goa Carbon/Graphite etc but Philip is in a entirely different caregory of products…not sure what the market participants are perceiving
More encouraging sector report ( I didnt purchase the report though.)
According to “India Carbon Black Market By Type, By Application, Competition Forecast and Opportunities, 2012-2026”, India carbon black market is projected to grow at a CAGR of 8.78% by the end of 2026. Full report available here https://www.researchandmarkets.com/research/vq5bhc/india_carbon.
Can any senior help me with valuation of Phillips carbon. Global carbon manufacturers like Cabot ( PE < 15), Mitsubishi Chemical Holdings ( PE < 9) are trading relatively cheap to Phillips carbon ( PE close to 25), is it wise to add more at this level.
Very strong results. Adjusted for one-offs of Rs20cr (Other expenses) , EBITDA/tonne of Rs12000. Well -positioned to grow volumes by 5% in FY19-20 with EBITDA/tonne of over Rs14,000 by FY20 last quarter.
Just to clarify - the 2017-18 full year EPS is Rs. 13.32 / PE will work out to be about 17. Company is on an expansion mode at this point in time and we can definitely see steady volume growth ahead. The company is having high pedigree management and promoters - we will continue to see the company scaling up and it will continue to attract quality investors.
See below the link article published by Hindu Businessline after the results:
50% capacity addition is exciting - 50k ton addition by Q3-2019 end, 30k ton by Q4-2019, and 150k ton by Q2 2020. Demand for carbon black, brownfield/greenfield expansion, debt reduction, EPS growth - if all these play out well, PCBL can be a multi-bagger
On the expected lines Phillips carbon black, delivered fantastic results. PCBL’s shift towards high value carbon black products, has helped to improved profit margins.
Results in short -
Revenue from operations increased 22% from Rs 641.78 crore in Q1 in 2017-18 to Rs 784.61 crore in the first quarter of 2018-19. Profit before tax was up 107% from Rs 66.30 crore to Rs 137.12 crore while profit after tax increased 103% from Rs 48.16 crore to Rs 97.54 crore.
Mr. Goenka updates on upcoming Greenfield project in Tamilnadu which may be moved to Telangana or Andhra, which I believe is a wise move, given the current situation in Tamilnadu. Below is the text quoted by Mr.Goenka from timesofindia
“We are concerned about what happened to Sterlite. Our carbon black plants comply with all environment norms. You can walk in with a white shirt into any of our plants and walk out squeaky clean. Pollution is not the issue. We are worried about violent agitation and its aftermath. We are not saying that Tamil Nadu is out. But we are speaking to Andhra Pradesh and Telangana” . While the company has land in Tamil Nadu, it will have to purchase at least 30 acres for the 1.5-lakh-tonne capacity plant if it chooses to locate it in either of the two other states. That will increase the project cost and push back the project by 12- 15 months, something that Goenka is willing to bear for sustainable operations. “We will take a decision by September. Thereafter, it will take 20-24 months to set up the plant and begin operations,” the company chairman said.
How is Pet Coke ban going to play out for Phillips Carbon?
Can anybody throw out some light into it. Is Phillips Carbon using PET COKE as fuel in any of it’s operations?
I have written to investor relations team and am awaiting their reply.
