About The Company
A part of the Dempo group, it is one of the leading manufacturers of calcined petroleum coke (CPC) in India. The company has a capacity to produce 2,40,000 tonnes per annum (tpa) of calcined petroleum coke, which is next only to Rain Commodity’s annual production capacity of around 6,00,000 tpa. The company supplies raw petroleum coke to Indian Oil Corporation, Baruni and Bangaigaon Refinery and Petrochemicals. The plants of the company situated at Goa, Bilaspur and Paradeep. It exports to Australia, Egypt, Dubai, France, Kuwait, Iran, Saudi Arabia, Singapore, Malaysia, Indonesia, Thailand, South Africa, Russia, Wales and England.
About The Financial Results
The company has had a very volatile time, oscillating between losses and profits. The company has been making losses since Q4FY09 and now has run into Q1FY10 also. Being dependent to a large extent on exports and given the overall slowdown, lack/postponement of orders is what has ailed the company.
For Q1FY10, net sales on a QoQ was up 59% at Rs.47.41 crore. It ended with a net loss of Rs.4.82 crore, which is again an improvement over the net loss of Rs.7.05 crore in Q4FY09.
The company was unable to pass on the burden of increased costs to the customers as many has postponed delivery. The costs have gone up due to imported raw materials and exchange rate fluctuations. Realisations were down. The company had a write down of finished goods inventory during the quarter of Rs.28.78 crore to bring to net realisable value. Also due to reduction of viable export & domestic orders, the plants were shut down during the quarter, where Goa plant was shut for 80 days and Paradeep plant was closed for 40 days.
The Board has approved the setting up of a wholly owned subsidiary outside India to invest in a JV in China to manufacture CPC.
About The Stock
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