By: ICN Bureau
Last updated : November 11, 2020 9:09 am
Company reported 5.65% YoY growth in Q2 top line revenues at Rs 221.59 crores on a consolidated basis
NOCIL Ltd reported 5.65% YoY growth in Q2 top line revenues at Rs 221.59 crores on a consolidated basis. The company being one of the largest producer of rubber chemicals took the hardest hit during lockdown due to low demand. However, the second quarter did see a sharp recovery in sales with most of the industrial customers getting back to normal production numbers.
Q2 PAT was down 69.38%YoY and reached Rs 16.82 crores which was primarily related to higher operational costs. For the same top-line, the company saw its raw material cost escalate by nearly 25%, which led to deep operational and net losses in the said quarter. The PAT margins fell from 26.19% in the Sep-19 quarter to 7.59% in the Sep-20 quarter.
NOCIL, part of Arvind Mafatlal Group is the largest rubber chemical business manufacturer in India, had recently announced plans to incur a capex investment of Rs.140 crore by October 2020 in Phase II through internal accruals.
In Phase II, the company had a total capex plan of Rs. 280 crore for two projects. Till date, the company has already capitalised capex investment of Rs.140 crore in Phase II.
First, expansion of its production facilities for rubber chemicals including intermediates captively consumed towards manufacture of rubber chemicals at Dahej/Navi Mumbai plant which was announced in December 2017.
Second, expansion of its production facilities for rubber chemicals at Dahej/Navi Mumbai which was announced in January 2018. Presently, the facility has completed Mechanical Completion and Trial Production of this facility.
Both the projects are 100% implemented by in-house teams without any technical collaborations. The company is in the process of developing niche products using innovative technologies, green chemistry concepts and new generation environmentally sustainable processes for growth.