Carbon black profits up, sales down at PCBL

Kolkata, India – PCBL Ltd (formerly Phillips Carbon Black Ltd) has posted a 14.3% year-on-year increase in pre-tax profits at its carbon black segment, to Crore204.51, for the second quarter of its fiscal year.

The gains over the three months to 30 Sept at the carbon black unit, were achieved despite a 14.9% year-on-year dip in sales to Crore1,354.16, PCBL latest financial report shows.

Following a similar track, PCBL’s pre-tax profit on carbon black for the first half of its fiscal year rose 11.0% year-on-year to Crore342.90, on sales down 11.9% to Crore2,613.19.

The performance of India’s largest domestic carbon black producer (see table) reflects that seen recently at other global suppliers, who have generally been reporting higher earnings on lower volumes.*

PCBL has a carbon black capacity of 770kpta, comprising plants at: Mundra, Gujarat (225ktpa); Durgapur, West Bengal (163ktpa); Palej, Gujurat (142ktpa); Tamil Nadu greenfield project (147ktpa); and Kochi, Kerala, (93ktpa).

Rubber blacks represent 90% of total volume sales at PCBL, which generates 65% of its overall revenues from the tire industry.

PCBL said it is benefiting from a reduction in carbon black imports to India – from 295kt in 2018 to an estimated 99kt in 2022 – while exports have increased at a CAGR of 19% to 222kt over the same period.

Meanwhile, tire demand in India  is increasing: forecast to grow by 8-9% in 2024 on recovery in both OE and replacement segments, the company added in a business presentation.

Domestic tire demand, PCBL added, is being supported by economic growth, vehicle scrappage policies, growing demand for SUV and EV tires and increased import restrictions.

*Recently posted results from other carbon black makers

*EBIT, ** Adjusted EBITDA, *** operating income