Goa Carbon
For the almost Q2, company’s Bilaspur unit, which contributes maximum to its revenue was shut down from 10th July to 26th Sept. And this has adversely impacted the performance of the company. That apart, its Paradeep plant was shut down for 75 days after the Odisha state control Board issued a notice stating that unless certain additional pollution control devices were not installed, it could not begin operations. Also, its third plant, which is the Goa plant was shut down for 92 days. Thus it comes as no surprise to see that the company for Q2FY15 posted a 57% (YoY) drop in net revenue at Rs.40 crore and a net loss of Rs.85 lakh v/s net profit of Rs.1 crore in previous Q2 and Rs.3.5 crore in Q1. The company during the current quarter had a tax write back of Rs.41 lakh and this helped reduce the loss to that extent.
This maker of calcinated petroleum coke (CPC) has a manufacturing capacity of 75,000 TPA but its operations vary significantly every quarter, due to erratic delivery schedules of customers and company’s inability to pass on price hikes. The company is in the process of establishing a greenfield 3 lakh tpa CPC plant in China, which appears quite ambitious. It has got approvals from Chinese administration but now awaits nod from RBI and bankers for funding this project. It hopes to get all clearances within a year.