Panaji, Goa – January 30, 2025
Goa Carbon Limited, a leading manufacturer of calcined petroleum coke, has announced its unaudited financial results for the third quarter of the financial year 2024-25, ending December 31, 2024. The company posted a net loss for the quarter, primarily due to higher material costs and inventory adjustments.Key Financial Highlights (₹ in lakhs)
| Particulars | Q3 FY24-25 (Dec 31, 2024) | Q2 FY24-25 (Sept 30, 2024) | Q3 FY23-24 (Dec 31, 2023) | 9M FY24-25 (Apr-Dec 2024) | 9M FY23-24 (Apr-Dec 2023) | FY23-24 (Mar 31, 2024) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 12,946.95 | 11,901.56 | 27,242.95 | 37,627.97 | 87,884.37 | 1,05,730.64 |
| Other Income | 245.11 | 350.00 | 335.77 | 948.64 | 868.08 | 1,415.97 |
| Total Income | 13,192.06 | 12,251.56 | 27,578.62 | 38,576.61 | 88,752.45 | 1,07,146.61 |
| Total Expenses | 14,231.49 | 13,653.09 | 22,958.36 | 40,507.55 | 78,642.28 | 95,575.52 |
| Profit Before Tax | (1,039.43) | (1,401.53) | 4,620.26 | (1,930.94) | 10,210.17 | 11,571.09 |
| Net Profit After Tax | (834.39) | (1,012.74) | 3,458.75 | (1,548.69) | 7,613.87 | 8,550.22 |
| Basic EPS (₹) | (9.12) | (11.07) | 37.80 | (16.92) | 83.20 | 93.43 |
Performance Analysis
- Revenue Decline: The company reported ₹12,946.95 lakh in revenue, reflecting a significant YoY decline of 52.5% from ₹27,242.95 lakh in Q3 FY23-24. However, revenue improved sequentially from ₹11,901.56 lakh in Q2 FY24-25.
- Rising Costs Impact Profitability: Total expenses surged to ₹14,231.49 lakh, driven by higher raw material costs of ₹13,566.04 lakh and an inventory adjustment of ₹(2,236.44) lakh.
- Net Loss Expands: The net loss for the quarter stood at ₹834.39 lakh, a slight improvement from ₹1,012.74 lakh in Q2 FY24-25 but a stark contrast to the ₹3,458.75 lakh profit in Q3 FY23-24.
- Declining EPS: The company reported a loss per share of ₹9.12 for the quarter, compared to earnings of ₹37.80 per share in Q3 FY23-24.
Segment-Wise Performance
- The company operates solely in the calcined petroleum coke (CPC) sector and does not have any subsidiaries, associates, or joint ventures.
Regulatory & Legal Updates
- Income Tax Dispute: The company is contesting a tax dispute amounting to ₹901 lakh related to deduction disallowances under Section 80HH-IC of the Income Tax Act. The case is currently under appeal in the Supreme Court.
- Goa Green Cess Issue: Goa Carbon is engaged in a legal battle over the Goa Green Cess, with pending appeals before the Supreme Court. The company has already deposited ₹270 lakh under protest as per court directives.
Management Commentary
Anupam Misra, Executive Director, stated:"The company continues to face headwinds from rising input costs and regulatory challenges. While revenue recovery in Q3 is encouraging compared to the previous quarter, we remain focused on cost optimization and legal resolutions to safeguard shareholder interests."
Strategic Outlook
- Raw Material Cost Management: Given the impact of higher raw material prices, the company is expected to focus on sourcing efficiencies and pricing strategies.
- Litigation Outcomes: The resolution of pending tax and cess disputes will play a crucial role in determining future financial stability.
- Market Demand: The demand for calcined petroleum coke remains linked to the aluminum and steel sectors, which could influence the company’s topline in upcoming quarters.
Conclusion
Goa Carbon reported another challenging quarter, with widening losses due to cost pressures and declining revenues. While sequential improvement in revenue offers some optimism, the company’s financial trajectory will largely depend on cost control measures and favorable regulatory outcomes.Investors should track litigation proceedings and raw material price trends for further updates.