Goa Carbon

Q2FY14 revenue of calcinated petroleum coke (CPC) maker Goa Carbon fell 5% YoY to Rs. 93 crore, with bottomline facing a steeper fall of 89% YoY to just Rs. 1.2 crore on account of higher raw material cost and unrealized forex losses. Share price of this Dempo group company, which sold 40,896 MT of CPC in the quarter gone-by (25% of which via exports) at average realization of Rs. 22,800 per MT, was hovering around Rs. 63 levels, just before the quarterly results were announced, closed yesterday much lower at Rs. 60 per share.

Although the company has a manufacturing capacity of 75,000 TPA of CPC, its operations vary significantly every quarter, due to erratic delivery schedules of customers and company’s inability to pass on price hikes. Its Goa and Bilaspur plant were shut for a significant part during the second quarter, with only the Paradeep plant operating for almost full term. For FY13, company had reported revenue of Rs. 296 crore and earned PAT of Rs. 7.9 crore, resulting in EPS of Rs. 8.65. H1FY14 EPS stands at negative 6.9 due to Q1FY14 negative EPS of Rs. 8.2.

The company is under process of establishing a greenfield 3 lakh tpa CPC plant in Chinam which appears quite ambitious. With a market cap of just Rs. 54 crore, it has net debt of Rs. 105 crore, on equity of Rs. 78 crore.