Nocil
An Arvind Mafatlal company, Nocil is India's largest manufacturer and supplier of rubber chemicals. Its main clientele is the tyre industry with factories in Thane and Dahej. The company sprung a pleasant surprise with a good set of Q3FY16 numbers. Though net sales actually fell 5% (YoY) to Rs.168 crore, cost cutting helped shore up the bottomline. What helped immensely was the drop in raw material prices – rubber, down 20% and overall operating costs down 7%. This helped improve the EBITDA, up 16% at Rs.36 crore and margins rose from 17.51% to 21.43%. It ended the quarter with a net profit at Rs.20 crore, up from Rs.16 crore in previous Q3.
The company has worked hard on reducing its debt – it is down 45% (YoY) and interest cost has halved from Rs.4 crore to Rs.2 crore. As at 31st Dec 2015, promoters hold 37.61% stake of which 4.26% is held by group company Navin Fluorine and 14.33% by Mafatlal Industries. The good news – net profit for 9MFY16 at Rs.55 crore is almost equivalent to FY15 net profit of Rs.57 crore, meaning it will end current fiscal on a bumper note.