Industrial Goods company Graphite India announced Q1FY25 results: Consolidated: Net Sales of Rs 728 crore, a decline of 2.5% YoY EBITDA of Rs 307 crore Net Profit of Rs 236 crore as compared to a loss of Rs 30 crore in Q1FY24 EPS of Rs 12.11 per share Gross Debt of Rs 257 crore Cash (Net of Gross Debt) of Rs 3,729 crore Standalone: Net Sales of Rs 672 crore, a decline of 6.7% YoY EBITDA of Rs 265 crore Net Profit of Rs 205 crore as compared to a loss of Rs 27 crore in Q1FY24 EPS of Rs 10.49 per share Gross Debt of Rs 172 crore Cash (Net of Gross Debt) of Rs 3,650 crore K K Bangur, Chairman of the firm said: “In Q1 FY2025, Graphite India registered Consolidated Net Sales of Rs 728 crore, a marginal decline of 2.5% compared to Q1 FY2024. Net Sales was driven by higher volumes offset by lower realisations. The company delivered EBITDA of Rs 307 crore, which includes Other Income of Rs 194 crore, and Net Profit of Rs 236 crore. Capacity utilization increased to 87% as compared to 67% in Q1 FY2024. Graphite India continues to be well capitalised with a Net Cash balance of Rs 3,729 crore at the end of 30 June 2024. During the quarter, global crude steel production excluding China increased by 1.8% on yYoY and a decline of 0.3% on q-o-q. Except for India and Middle East which increased production by 10.6% and 12.5% respectively, all other major countries either recorded marginally increased or declined steel production. The increase in India’s steel production was correlated to the government spending on the infrastructure and construction sectors. Both these sectors are expected to jointly account for 67% of India’s steel demand until 2030. While the pricing for graphite electrodes continues to remain under pressure, the decline in the cost of imported needle coke is not commensurate, thereby impacting operating margins In the coming years, the global steel industry is expected to place greater emphasis on new capacity expansion through the EAF route. This strategic shift aligns with not only global decarbonization efforts, but with the need for lower operating costs. Graphite India is well positioned to benefit from the structural industry changes with its globally benchmarked quality and cost efficient manufacturing platform. In addition to being responsive to its customer requirements and continuous improvements in operations, sustainability remains high on the agenda.” Result PDF
Industrial Goods company Graphite India announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Consolidated: Net Sales of Rs 720 crore, a decline of 11.7% YoY EBITDA of Rs 62 crore with margin of 7.5% Net Profit of Rs 16 crore EPS of Rs 0.80 per share Standalone: Net Sales of Rs 706 crore, a decline of 2.9% YoY EBITDA of Rs 66 crore with margin of 9.3% Net Profit of Rs 34 crore EPS of Rs 1.73 per share FY24 Financial Highlights: Consolidated: Net Sales of Rs 2,950 crore, a decline of 7.3% YoY EBITDA of Rs 160 crore with margin of 5.4% Net Profit of Rs 805 crore EPS of Rs 41.36 per share Gross Debt of Rs 177 crore Cash (Net of Gross Debt) of Rs 3,307 crore Dividend announced of Rs 11 per share for FY24 Dividend pay out ratio of 550% on the Face Value Standalone: Net Sales of Rs 2,894 crore, a decline of 0.7% YoY EBITDA of Rs 207 crore with margin of 7.2% Net Profit of Rs 872 crore EPS of Rs 44.62 per share K K Bangur, Chairman of Graphite India said, “For FY2024, Graphite India delivered Consolidated Net Sales of Rs 2,950 crore, EBITDA of Rs 160 crore and Net Profit of Rs 805 crore, which includes the sale of land in Bengaluru. Although sales volume increased during the year, lower realisations impacted Net Sales by 7.3% compared to the previous year. During Q4 FY24, standalone capacity utilisation increased to 93% as compared to 61% in Q4 FY23. Graphite India is well capitalised with a Net Cash balance of Rs 3,307 crore at the end of March 2024. Steel demand in developed economies has shown modest near-term growth, with a projected increase of 1.3% in 2024 and a further 2.7% growth in 2025. In China, steel demand remains relatively low as a result of the slowdown in the real estate sector. However, this has been offset by growth from the infrastructure and manufacturing sectors, resulting in 2024 expected demand to be flat compared to the previous year. In sharp contrast, India's steel demand has a positive near-term outlook considering robust plans for infrastructure investments across the country, with an anticipated 8% annual growth rate. The pricing for graphite electrodes continues to remain under pressure while input costs need further correction. Global decarbonisation of steel will support the EAF manufacturing process, resulting in a significant increase in demand of graphite electrodes in the medium to long term. The current uncertainties in the world economy with persistent inflation, higher interest rates and geopolitical tensions could delay the trend. In alignment with the company’s commitment to sustainability objectives, Graphite India has partly commissioned its first wind power facility for captive consumption, with full commissioning expected by Q1FY25. This initiative will lead to substantial energy cost savings and a reduction in carbon emissions. As Graphite India navigates through this challenging environment, management remains focused on overall operational efficiencies with a long term goal towards a stronger future.” Result PDF