Goa Carbon

Goa Carbon’ stock price hit a new 52-week high today at Rs.97.25; the market was thrilled with the numbers despite ending the year with a loss. Like in Q3, this Q4FY16 too the plants were shut – Goa for 28 days (29 days in Q3), Bilaspur for 54 days (32) and Paradeep for 31 days (28). Yet it could end the quarter with a small net profit of Rs.41 lakh compared to loss of Rs.90 lakh in Q3. This was thanks to the 27% (QoQ) drop in total costs though net sales were down 25% at Rs.67 crore. The company ended FY16 with a consolidated whopping 67% rise in net sales at Rs.315 crore while net loss reduced from Rs.9 crore to Rs.3 crore.

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.