India Carbon Limited Unlisted Shares
Buy - ₹20.00
Sell - ₹27.00
About India Carbon Limited Unlisted Shares
1. About the Company
Founded in 1961 by Mr. B. Himatsingka, India Carbon Limited (ICL) has evolved into one of India’s leading producers of Calcined Petroleum Coke (CPC). Over the years, the company has built a solid reputation in the carbon industry, specializing in the production of CPC, Electrode Carbon Paste (ECP), and Tamping Paste. With a pioneering presence in Asia’s calcination industry, ICL’s first plant was established in Guwahati, Assam in 1962, followed by a second plant in Budge Budge, West Bengal in 1969. ICL’s collaboration with Oxbow Calcining LLC, a global leader in CPC production, has been instrumental in maintaining high-quality manufacturing standards.
ICL’s products are crucial for industries like aluminum, steel, and graphite production, where high-purity carbon materials are indispensable. The company sources raw petroleum coke (RPC) from oil refineries worldwide, ensuring the consistent quality of its offerings. ICL serves some of the biggest names in the industry, including NALCO, HINDALCO, SAIL, and TISCO, highlighting its significant market position.
2. Business Divisions
ICL operates primarily in the following divisions:
- Calcined Petroleum Coke (CPC): As the company’s flagship product, CPC is a high-purity carbon material used in aluminum production and other carbon-intensive industries. With over 99.5% carbon content, CPC is crucial in producing anodes for aluminum smelting. It is also an essential component in the manufacturing of steel and graphite.
- Electrode Carbon Paste (ECP): ECP is used in ferroalloy manufacturing and other allied industries. It is created by blending CPC with calcined anthracite coal and soft pitch, ensuring optimal performance in high-demand industrial environments.
- Tamping Paste: Tamping paste is widely used in various industrial applications where high-strength carbon products are required for operational efficiency.
ICL’s extensive product offerings cater to critical industries in India and globally, ensuring its prominent position as a reliable supplier in the carbon sector.
3. Financial Highlights of India Carbon Limited Unlisted Shares
Understanding the financial performance of India Carbon Limited Unlisted Shares is essential for potential investors. Here are the key financial highlights:
- Revenue Growth: In FY 2024, ICL’s revenue stood at ₹420 crore, down from ₹566 crore in FY 2023. Despite the decline, the company still maintained a strong revenue base. The 2022-2023 period saw a revenue growth rate of 24.12%, which reflects the demand for ICL’s products despite external challenges.
- Gross Margins: The company’s gross margins in FY 2024 were 26.67%, a significant improvement from the previous year’s 11.48%. This indicates a recovery in profitability and efficiency in managing costs. In FY 2022, gross margins were 21.71%, showing the company’s strong ability to adapt and improve even in volatile market conditions.
- Profitability: ICL’s profit after tax (PAT) in FY 2024 stood at ₹30 crore, an increase from ₹24 crore in FY 2023. While still below the ₹81 crore recorded in FY 2022, the company has demonstrated a consistent ability to generate profit despite the economic and cost pressures it faces. This indicates a positive outlook for the company’s financial health.
- Earnings Per Share (EPS): In FY 2024, EPS was ₹113.21, reflecting a solid return to profitability after a significant dip in previous years. The decline in EPS compared to FY 2022’s ₹311.54 is primarily due to increased costs and a decline in revenue, but the figures still indicate that ICL is effectively managing its shareholder returns.
- Debt-Free Operations: One of ICL’s notable financial strengths is its debt-to-equity ratio of 0, indicating that the company operates with minimal debt. This low leverage reduces financial risk, providing a stable base for future growth.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Market Position: ICL is a trusted supplier of high-quality carbon products for key industries. Its long-standing relationships with top clients, such as NALCO, HINDALCO, and TISCO, reinforce its competitive edge.
- Strategic Partnership: The collaboration with Oxbow Calcining LLC strengthens ICL’s manufacturing capabilities and ensures that its products meet international quality standards, helping it stay competitive in a global market.
- Resilient Financial Performance: Despite the challenges in recent years, ICL has consistently demonstrated resilience. For example, in FY 2021-22, it recovered from a loss in the previous year to post a healthy profit. The company’s ability to manage costs and recover profitability highlights its operational efficiency.
Cons
- Fluctuating Raw Material Costs: The company relies on global sources for raw petroleum coke (RPC), and fluctuations in the price of RPC significantly affect its cost structure. For instance, the rising cost of materials was a key concern in FY 2023, contributing to a sharp decline in profitability.
- Operational Disruptions: The company’s performance has been affected by external factors such as the COVID-19 pandemic and disruptions in the global supply chain. For instance, in FY 2020-21, ICL witnessed a decline in both revenue and production volumes.
