Chemical
NOCIL plans Capex investment of Rs. 140 Cr amid lower quarterly sales
In Phase II, the company had a total Capex plan of Rs. 280 crore for two projects out of which 50% has already been capitalized.
- By Pravin Prashant
| August 26, 2020
NOCIL Ltd, part of Arvind Mafatlal Group is the largest rubber chemical business manufacturer in India, is planning 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.
The company's net profit dropped by 63.7% to Rs 11.95 crore on 53.6% decrease in net sales to Rs 106.51 crore in Q1 June 2020 over Q1 June 2019.
Operating EBITDA slumped 87.96% to Rs 8 crore in Q1 FY21 as against Rs 57 crore in Q1 FY20. Operating EBITDA margin was at 7.5% in Q1 FY21 as compared to 24.6% in Q1 FY20.
Revenue from operations were impacted due to COVID-led nationwide plant shutdown both at the customers end and suppliers' side. Tyre majors started their operations at sub-optimal levels. Lower revenue resulted into lower absorption of fixed costs leading to subdued EBITDA, said the company.
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