Goa Carbon

A Dempo group company, Goa Carbon Ltd (GCL) is the second largest manufacturer of Calcined Petroleum Coke (CPC) in India and the stock, on the back of its encouraging Q4 numbers is doing well. The company has three plants - one at Goa, one at Bilaspur and one at Paradip. The total aggregate capacity of the all plants is four lakh tonne. The performance for Q4FY13 looks good as the company has turned around on a sequential basis from a net loss of Rs.1.58 crore in Q3 to a net profit of Rs.5.17 crore in Q4. This was possible mainly on account of 49% rise in net sales and brining down of operating expenses; it was 92% of the net sales compared to 103% in Q3. The company had an exchange gain of Rs.2.22 crore and that also helped.

CPC, the product made by the company is largely used by aluminium industry and electrodes manufacturers and its main raw material is green petroleum, which is imported and driven by the price of crude. The discovery of the selling price of the product is in import parity price. For the year ended 31st March 2013, the performance was not all that good, with consolidated net sales dropping 14% and despite the 12% cut down in operating expenses, it ended the year with a net profit of Rs.7.64 crore, down 27%. Its total debt stands at around Rs.137 crore which is used largely to fund its working capital needs but if we look at its current assets, at Rs.177 crore, the debt does not seem much. Its interest out for Fy13 has come down to Rs.5 crore compared to Rs.7 crore in FY12. Exchange loss for the year was at Rs.4 crore v/s 5.54 crore in FY12. Equity stands at Rs.9.15 crore and reserves at end of FY13 was at Rs.75 crore. EPS of Rs.8.35 (face value Rs.10) discounts the current price by around 9 times.