http://www.reuters.co.in/locales/c_newsArticle.jsp?type=businessNews&localeKey=en_IN&storyID=7825443
NTERVIEW - Goa Carbon says sales to zoom Mon March 7, 2005 6:20 PM GMT+05:30
By Shailendra Bhatnagar
PANAJI, India (Reuters) - Goa Carbon Ltd., India's second largest maker of calcined petroleum coke, expects year to March 2005 sales to more than double and the company to report a minor profit mainly on the back of rising prices and strong demand, the company's chairman said on Monday.
Shrinivas Dempo told Reuters in an interview Goa Carbon, which has an annual capacity of 240,000 tonnes across three manufacturing facilities in India, was likely to post sales of 1.90 billion rupees in the business year ending March 31.
The company posted a profit of 8.15 million rupees on sales of 934.8 million rupees in 2003/04.
"This year we should have a minor profit of about 10 million rupees, but in 2005/06 we are looking at a profit of between 80 to 90 million rupees on a top line of 2.25 billion rupees," Dempo, who owns a football team in soccer crazy Goa, said.
The 36-year-old said higher prices of calcined petroleum coke, stabilisation of freight rates after two years of a steep rise and expectations that raw material prices would rise only marginally were the reasons behind the higher forecast. As a result, the company was also looking to expand capacity.
"Today we are at $210 per tonne on an FOB (freight on board) basis. We expect this price to be $220 per tonne in 2005/06," Dempo said. Prices of calcined petroleum coke were in the range of $165-$170 per tonne a year ago.
Calcined petroleum coke is a key ingredient in aluminium production. Aluminum prices have been rising due to a firm demand from the automobile, construction and electrical sectors. There is heavy overseas demand from China as well.
Goa Carbon plans to raise its capacity to 360,000 tonnes by March 2007 as demand from its main customers -- state-run National Aluminum Co. Ltd. and BALCO Ltd -- is on the rise.
Both companies have also made their expansion plans public. NALCO is boosting its alumina smelter capacity by 31 percent to 460,000 tonnes.
Dempo said Goa Carbon would meet the expansion costs of up to 200 million rupees through a combination of debt and equity. Most of the expansion would be at the company's plant in eastern Orissa state.
It has a manufacturing facility in the western port state of Goa and one in central Chattisgarh state. Goa Carbon exports calcined petroleum coke to countries such as France, Australia and the United Kingdom.
"We may look at infusing more capital," Dempo said. "Even worldwide a lot of alumina smelters are in an expansionary mode and what is impacting us positively is that a lot of smelter projects are coming up in the Middle East."
The company is already in talks to send trial cargoes to overseas buyers.
Goa Carbon has an equity capital of 46 million rupees and the Dempo family owns 54 percent stake in the 29-year-old firm.
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