Goa Carbon

Goa Carbon's Goa plant was shut for 29 days, Bilaspur was shut for 32 days and Paradeep for 28 days. Thus it comes as no surprise to see that it ended Q3FY16 with a net loss of Rs.90 lakh compared to loss of Rs.3 crore in sequential Q2. At least the net loss has come down – that’s the only relief. The loss is mainly on account of the over 16 times (YoY) rise in raw material cost. Thus despite net sales rising more than 4 times to Rs.90 crore, the costs of Rs.90 crore, the interest outgo and forex loss pushed the company into the red. In the current quarter, it had a tax write back of Rs.29 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’s plan to set up a greenfield 3 lakh tpa CPC plant in China was cancelled by the Chinese Govt as it is considered to be a highly pollutant and higher energy consuming business. The diminution in the carrying cost of this Chinese plant of Rs.10 crore has already been provided for in FY15.