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economy | IST

Goa Carbon says if SC doesn't lift pet coke ban, it would be 'disastrous' for company

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Shares of Goa Carbon plunged about 5 percent on Friday after the company reported a loss in the quarter ended September. Shrinivas Dempo, chairman of Goa Carbon, spoke to CNBC-TV18 about the company's financial performance and outlook .

Shares of Goa Carbon plunged about 5 percent on Friday after the company reported a loss in the quarter ended September.
Shrinivas Dempo, chairman of Goa Carbon, spoke to CNBC-TV18 about the company's financial performance and outlook .
According to Dempo, the quarterly performance was weak due to the ban imposed by the Supreme Court on import of pet coke, which is a raw petroleum coke .
"Therefore, existing stock of raw materials have been used to service the buyers but haven’t been able to take extra orders and so the production has gone down," said Dempo.
"The ban has also increased the cost of raw materials because the company has not been able to import low cost raw materials to blend to make orders more profitable," Dempo added.
“So its double-whammy – first, cannot import raw material and second we cannot do blending process as wanted to increase margins,” said Dempo.
Talking about the SC hearing on pet coke ban, which is slated for October 9, Dempo said, "If the stay is not lifted it would disastrous for the company because with the available raw materials we would be able to keep the plants open only until November, 2018."