INSUBCONTINENT EXCLUSIVE:
Kolkata: Graphite India reported a 913 % jump in its standalone net profit at Rs 912 crore for the second-quarter (Q2) ended September 30,
2018, compared to Rs 90 crore profit posted in the corresponding period previous fiscal
The growth in net profit follows a 335 % rise in gross sales at Rs 2008 crore in the said period as against Rs 462
crore earned in the
corresponding previous quarter.
Company officials attributed the improved performance to higher capacity utilization levels of 93% and
improved price realizations
However, this quarter margins were partly impacted due to higher cost of needle coke, the company release stated
Operating profit (EBITDA) in the quarter under review stood at Rs 1409 crore, up 839% from Rs 150 crore in the corresponding previous
Capacity utilization in Q2 FY2019 was 102% compared to 89% in Q2 FY2018.
The company's board of directors has recommended an interim
dividend Rs 20 per equity share for the financial year 2018-19, the release pointed out.
Commenting on the industry's future outlook,
Graphite India chairman K
Bangur said, world crude steel production continued to maintain its momentum of steady growth
Additionally, "the Chinese steel industry is shifting steadily from the polluting blast furnace route to cleaner electric arc furnace
technology, resulting in an increased
electrode demand
At the global level, shift towards EAF production is clearly evident with an increase in its market share from 25% in 2015 to 28% in 2017,"
he said.
Bangur further added: "In our home market too, India registered a growth of 4.6% in Q3 CY2018 with steel demand expected to be
driven by higher capacity utilization and large scale infrastructure investment programs
Consequently, market buoyancy is expected to continue."
Company officials are, therefore, optimistic about the prospects of the graphite
