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 was good but yesterday, its performance for Q1FY14 was disappointing, with the stock crashing 5%. The company ended the quarter with a net loss at Rs.7.5 crore compared to the net loss of Rs.6.72 crore for Q1FY13. So seasonally, Q1 is loss making. Forex loss of Rs.8 crore pushed the company into the red.

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. 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 had come down to Rs.5 crore compared to Rs.7 crore in FY12. Equity stands at Rs.9.15 crore and reserves at end of FY13 was at Rs.75 crore.