The Hindu Business Line : Goa Carbon board okays merger of Paradeep Carbons

THE board of directors of Goa Carbon Ltd, a subsidiary of Goa-based Dempo Group and manufacturer of calcined petroleum coke (CPC), on Monday approved the merger of Paradeep Carbons Ltd (PCL) — a 100 per cent subsidiary — with the company, effective from July 1, subject to approval from the Bombay High Court.

The board also announced the approved un-audited results for the first quarter ended September 30 signalling a turnaround in GCL and PCL. The company recorded a gross turnover of Rs 40.85 crore and a net profit of Rs 1.97 crore for the quarter.

For the 15-month period ended June 2005, PCL had recorded a turnover of Rs 119.81 crore and a net loss of Rs 61.98 crore .

The company sources described the quarter one performance for GCL as "quite good considering that f.o.b. price of raw petroleum coke (RPC) continues to be high, affecting operating results and margins".

GCL reported a net profit of Rs 10.42 lakh during the quarter compared to a loss of Rs 48.95 lakh in the July-September quarter of the previous year.

GCL had extended its accounting year ending in 2004-05 by three months, closing its accounting year in June 2005 - a 15-month period. For the15-month period ended June 2005, GCL recorded sales of Rs 121.03 crore and a loss of Rs 78.6 lakh. GCL had recommended a dividend of 5 per cent for 2004-05 despite the tough period.

Mr Shrinivas Dempo, Executive Chairman, GCL, said: "With the aluminium industry looking up, finished goods prices have moved up. We are looking to cash in on the uptrend in prices by increasing the rated capacity of our plants at Bilaspur and Paradeep, and also modernising our Margaon (Goa) plant to improve efficiency of operations. This should result in still better margins for us in the coming quarters."

On the PCL merger, Dempo said: "The merger will also offer better synergies to us, while seriously considering the expansion of PCL plant to cater to growing demands of large greenfield smelters which are planned in Orissa."

While end product (CPC) prices have risen, in line with the rising prices of aluminium worldwide, the cost of raw material has also risen. On an average, CPC prices have risen 7 per cent over the three-month period.

GCL has announced a rights issue for existing shareholders in the ratio of 1:1, at a price of Rs 80 a share.

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