PCBL’s Patent: Revolutionizing Tire Performance with Hybrid Carbon Black and Graphene

Introduction to PCBL

PCBL, established in 1960, is a prominent manufacturer of carbon black with operations spanning four plants located in Durgapur (West Bengal), Mundra (Gujarat), Palej (Gujarat), and Kochi (Kerala). These facilities collectively boast an impressive aggregate capacity of 6,03,000 MTPA. In a significant development, PCBL commissioned a greenfield project in Chennai, Tamil Nadu, in September 2023, adding an additional 147,000 MTPA under its wholly-owned subsidiary, PCBL (TN) Limited.

Co-generation Power Plants

In addition to carbon black production, PCBL operates co-generation power plants with a capacity of 110 MW (as of October 2023). These plants leverage waste gas generated during the carbon black manufacturing process, highlighting PCBL’s commitment to sustainability and efficient resource utilization. PCBL is part of the Kolkata-based RP-SG Group, which underscores its strong corporate backing.

ACPL: A Key Player in Specialty Chemicals

Product Portfolio and Applications

ACPL is renowned for manufacturing specialty chemicals, with a diverse product range including phosphonates, biodegradable chelating agents, polymers, biocides, and oilfield chemicals. These products have extensive applications in water treatment, detergents, industrial cleaners, oilfields, municipal water treatment, pulp and paper, water softening, surface cleaning, pharmaceuticals, and agrochemicals. ACPL’s manufacturing footprint extends across India, the United States, and Saudi Arabia, with overseas plants operated through subsidiaries.

Carbon Black: The Revenue Driver

Major Revenue Segment

A substantial portion of PCBL’s revenue is derived from its carbon black segment. This segment has been the cornerstone of the company’s financial performance, driving growth and profitability.

Patent Grant: A Game Changer

In a recent milestone, PCBL was granted a patent by the Indian Patent Office for an innovation titled “Hybrid carbon black grade comprising Graphene to improve performance of rubber compounds” (Patent No. IN544320). This innovation is poised to revolutionize the industry by enhancing fuel efficiency, tire durability, and load-bearing capacity through the use of a hybrid filler of carbon black and graphene. This breakthrough technology not only improves performance but also reduces tire weight, offering significant benefits to the automotive sector.

Financial Performance: A Robust Growth Trajectory

PCBL’s consolidated revenue from operations for Q4FY24 stood at an impressive Rs. 1929 crore, with an EBITDA of Rs. 332 crore, reflecting a year-on-year increase of 66%. The profit before tax (PBT) for the quarter was Rs. 149 crore. For the full fiscal year FY24, PCBL reported its highest-ever EBITDA of Rs. 1,074 crore, compared to Rs. 775 crore in FY23. The company also achieved record sales volumes of 532 KT in FY24, up from 445 KT in the previous year. Specifically, the Q4FY24 sales volume was 1,42,544 MT.

Recent Market Trends

The stock has shown a robust performance, gaining 17.03% in the past month. For the year 2024, the stock has risen by 4.07%, and over the last 12 months, it has surged by 59.73%. The recent patent grant is expected to have a positive impact on the stock, potentially driving further gains in the near future.

Conclusion

PCBL’s strategic expansions, innovative breakthroughs, and robust financial performance position it as a key player in the carbon black industry. The company’s commitment to sustainability through co-generation power plants and the recent patent grant underscores its potential for future growth and value creation for shareholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.