Goa Carbon Ltd., a leading manufacturer of Calcined Petroleum Coke (CPC), witnessed a 6.73 percent surge in its share price on January 2, 2025. This comes after the company announced the resumption of operations at its Bilaspur unit in Chhattisgarh, effective January 1, 2025.

The stock was trading at Rs 743, up by Rs 46.85, as of 10:35 AM on the National Stock Exchange (NSE). This marks a strong vote of confidence from investors following the company's operational update.

Key Announcement

According to an exchange filing, Goa Carbon stated, "The kiln has been lit, and production has returned to normal from today." The announcement signals the company’s return to full production capacity at its Bilaspur plant, a development that is expected to positively impact its production metrics in the coming quarters.

About the Bilaspur Unit

The Bilaspur unit is one of Goa Carbon’s three production facilities across India. Although the smallest of the three, with a licensed capacity of 40,000 tonnes per annum (TPA) of Calcined Petroleum Coke, its resumption is crucial for meeting customer demands and operational efficiency.

The company’s other facilities include:

• Goa Plant: 1,00,000 TPA capacity
• Paradeep Plant (Odisha): 1,68,000 TPA capacity

This combined production capacity places Goa Carbon among the prominent players catering to industries such as:

• Aluminium Smelting
• Graphite Electrode Manufacturing
• Titanium Dioxide Production

Additionally, Goa Carbon’s products find applications in metallurgical and chemical processes, underscoring their industrial importance.

Stock Market Reaction

Following the resumption of operations, investor sentiment has turned bullish, as reflected in the stock's 6.73 percent gain. Goa Carbon shares have consistently performed well over the years, delivering a 20 percent gain in 2024 and consistent positive returns over the past five years.

Shareholding Pattern

As of the September 2024 quarter, the company’s shareholding structure included:

• Promoters: Holding a majority stake of 59.72 percent.
• Small Shareholders: Representing one-third of the total holding.
• Institutional Investors: Notably, domestic mutual funds and foreign institutional investors held negligible stakes, indicating limited institutional interest during the period.

Financial Performance

Despite the positive market sentiment, Goa Carbon faces significant financial challenges. In Q2FY25, the company reported:

• Net Loss: Rs 10.12 crore, compared to a net profit of Rs 28.96 crore in Q2FY24.
• Revenue Decline: Revenue from operations dropped 45.82 percent year-on-year to Rs 122.51 crore.

This decline can be attributed to operational disruptions and reduced production capacity, particularly at the Bilaspur plant.

Industry Outlook

The resumption of operations at the Bilaspur unit is a critical step for Goa Carbon to regain its production momentum. With increasing demand for Calcined Petroleum Coke in aluminium and graphite electrode industries, the company is well-positioned to capitalize on market opportunities.

However, the path to recovery will require:

• Operational Stability: Maintaining consistent production across all plants.
• Financial Discipline: Addressing revenue and profitability challenges through cost optimization.
• Market Expansion: Tapping into emerging markets and diversifying its customer base.

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