Indian carbon black maker PCBL Ltd reported a 4.9% fall in second-quarter profit on Wednesday, as higher costs offset robust sales of the tire strengthening material.
A spike in crude oil prices following the Russia-Ukraine war and accompanying inflationary pressures have resulted in increased costs of production for carbon black.
Profit fell to 1.16 billion Indian rupees in the three months to Sept. 30 from 1.22 billion rupees a year earlier.
Overall revenue rose 52.4% to 16.28 billion rupees, driven by a 52.2% jump in sales of carbon black, which is also used in speciality and performance chemicals.
However, a 61.3% rise in total expenses, driven by a 75.4% jump in cost of materials consumed, weighed on profits.
PBCL shares jumped 15.8% so far this year, as of last close.
(Reporting by Atreya Raghavan in Bengaluru; Editing by Krishna Chandra Eluri)
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