Q4FY21 Company Update - Phillips Carbon Black - ICICI Direct

Phillips Carbon Black (PCBL) reported a steady performance in Q4FY21. Net sales for the quarter were at Rs. 867 crore, up 24% YoY. Carbon black sales volume came in at 113,022 tonne (up 14.4% YoY) with consequent realisation at Rs. 75/kg vs. Rs. 65/kg in Q3FY21. EBITDA in Q4FY21 was at Rs. 186 crore (EBITDA margins at 21.5%) with EBITDA/tonne at ~Rs. 16,500/tonne (flat QoQ). PAT for the quarter was at Rs. 127.4 crore, up 2% QoQ. Carbon black sales volume for FY21 was at 3.9 lakh tonne vs. 4.1 lakh tonne in FY20. Net sales in FY21 were at Rs. 2660 crore (down 18% YoY), EBITDA at Rs. 519 crore (EBITDA margins: 19.5%, EBITDA/tonne: Rs. 13,322/tonne) and PAT at Rs. 312 crore (up 10% YoY). PCBL had already declared and paid dividend of Rs. 7/share for FY21, with dividend payout at ~40%.

Valuation & Outlook

We maintain our positive stance on PCBL amid its capital efficient business model (RoE, RoCE>16%), robust cash flow generation and overall positive demand scenario both domestically as well as globally. Building in ~16%, 20% sales, PAT CAGR, respectively, in FY21-23E we retain BUY on the stock valuing it at Rs. 260 i.e. 10x P/E on FY23E EPS of Rs. 26/share (earlier TP Rs. 210).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PCBL_CoUpdate_Apr21.pdf

Shares of PHILLIPS CARBON BLACK LTD. was last trading in BSE at Rs.204.8 as compared to the previous close of Rs. 207.6. The total number of shares traded during the day was 320469 in over 6206 trades.

The stock hit an intraday high of Rs. 211.5 and intraday low of 201.3. The net turnover during the day was Rs. 66181200.

Source : Equity Bulls

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