Rain Calcining reigning high
[ MONDAY, OCTOBER 27, 2003 12:44:58 AM ]

Fortune is finally favouring Rain Calcining. The company, a 100% export oriented unit (EOU) manufacturing calcined petroleum coke, has improved its financial performance quarter after quarter over the past year. This was because of the uptrend in prices of aluminium in the international markets beginning this financial year, which correspondingly led to improved realisations in the prices of calcined petroleum coke as well.

More importantly, the company made a breakthrough in April this year, when it won a case against AP Transco, overturning the AP Electricity Regulatory Commission's ruling to pay additional wheeling charges to AP Transco for evacuation of electricity on the co-generation of power that the company supplies to the A P State Electricity Board. This decision would effectively mean that the company could effect annual savings of around Rs 30 crore in wheeling charges, which it was earlier paying to AP Transco. This would see its profitability margins surge substantially, going forward.

The company is currently operating its calcined petroleum coke unit at full capacity. Rain Calcining is now looking to enhance its capacity by the end of the current financial year.

All these factors appear to suggest that the company is now on firm footing. It is a good time to take a look at the company's prospects, with the stock hovering around Rs 18-19.