NOCIL's revenue for the period was Rs 3.6 billion, slightly lower than the expected Rs 3.9 billion, representing a 2.5% sequential decline. This decrease is due to logistical challenges that resulted in a small decrease in volumes, although the average price per kilogram remained stable at Rs 254, showing a 6% year-on-year decline.
Sales volume increased by 11% compared to the previous year, but EBITDA per kilogram decreased by 25% due to higher operating expenses related to increased production and freight costs. The company's overall capacity utilization is currently at 70%, with varying levels across different product lines.
To meet the strong demand for rubber chemical products, NOCIL plans to invest Rs 2.5 billion in expanding its capacity. These new capacities are expected to be operational in the second half of FY27, but it will take another 1.5 to 2 years to reach peak utilization across the portfolio.