Philips Carbon Black takes flight by 5% on Friday

Philips Carbon Black’s shares soared by over 5% intraday during Friday’s trading session post a report that the company is likely to invest Rs 300 crore in order to ramp up the capacity. It is also planning to evaluate a greenfield carbon black plant in South India.
 
According to a leading news agency, Sanjiv Goenka, chairman of Philips Carbon Black, said, “We have a capacity of 4.8 lakh tons per annum of carbon black and now we will be investing Rs 300 crore in the Palej and Mundra plants of Gujarat to add another 80,000 tons of capacity. The new capacity will be ready by FY2019.”
 
The company’s standalone revenue for the quarter came in at Rs 637 crore, registering 33.3% YoY increase. This was primarily driven by 35.1% YoY jump in the revenue of its carbon black segment. The PAT for the quarter came in at Rs. 48.2 crore, a YoY increase of 407%. This was mainly on account of lower effective tax rate of about 27% as against about 64% in the corresponding quarter last year.
 
Meanwhile, the stock was higher by 5.85% at Rs 613 per share on the BSE at 1052 hours. It opened at Rs 578 per share. It attracted total traded volume of 3,08,000 shares and traded value of Rs 1,850.90 lakh on the NSE at 1056 hours.