Graphite India announced Q3FY23 results: Consolidated Q3FY23 vs Q3FY22: Net sales of Rs 701 crore, a decrease of 20% YoY and 15% QoQ EBITDA of Rs 105 crore as compared to Rs 203 crore in Q3FY22 Net profit of Rs 53 crore as compared to Rs 132 crore in Q3FY22 EPS of Rs 2.66 per share Balance sheet: Gross debt of Rs 345 crore Cash (net of gross debt) of Rs 2,031 crore Standalone Q3FY23 vs Q3FY22: Net sales of Rs 669 crore, a decrease of 20% YoY and 7% QoQ EBITDA of Rs 134 crore as compared to Rs 218 crore in Q3FY22 Net profit of Rs 92 crore as compared to Rs 155 crore in Q3FY22 EPS of Rs 4.65 per share Balance sheet: Gross debt of Rs 221 crore Cash (Net of gross debt) of Rs 1,864 crore Chairman’s Message K K Bangur, said: “During the quarter, Graphite India reported consolidated Net Sales of Rs 701 crore, a decline of 20% y-o-y. EBITDA, before a one-time charge of Rs 8 crore, was Rs 105 crore and Net Profit was Rs 53 crore. On a standalone basis, the company delivered Net Sales of Rs 669 crore, EBITDA of Rs 134 crore and Net Profit of 92 crore From a manufacturing perspective, the consolidated capacity utilization during the quarter was 42% as compared to 56% in Q2 FY2023. The reduced production was caused by the closure of our German electrode plant and the downturn in the global economy. The company has a consolidated Net Cash position of Rs 2,031 crore at the end of Q3FY23. Total world crude steel production was 1,878.5 Mt in 2022, a 4.2% decrease compared to 2021. In developed economies, the recovery of steel demand faced challenges due to sustained inflation and persistent supply-side constraints. The high energy prices in Europe made it challenging for steel manufacturers to maintain their production levels, as the increased costs put a strain on their margins. This resulted in a slowdown in the recovery of the steel industry. Despite the global headwinds, India saw a positive outcome with a growth rate of 5.5% for the year. Steel remains a critical raw material in various sectors and will benefit from the Indian government's increase in capital expenditure to Rs 10 Lakh crore in the next fiscal year. This is expected to drive growth in steel and cement consumption, particularly in high-capex industries. The government's initiative to remove the export duty on steel products will also help domestic steel manufacturers boost their profits and provide them with the opportunity to tap into overseas markets as well. As a result, the demand for steel is projected to remain robust in the coming years. Graphite India remains confident in the future prospects of the electrode industry. We continue to be focused on implementing best practices in operational efficiency and exercising financial prudence. The Company is well positioned for the future.” Result PDF
Industrial goods company Graphite India announced Q2FY23 results: Consolidated: Net sales of Rs 825 crore, an increase of 19% YoY and (5)% QoQ EBITDA excluding an exceptional item is Rs 213 crore in Q2FY23 as compared to Rs 188 crore in Q2FY22 Net Profit of Rs 92 crore in Q2FY23 as compared to Rs 128 crore in Q2FY22 EPS of Rs 4.72 per share Standalone: Net sales of Rs 719 crore, an increase of 10% YoY and (11)% QoQ EBITDA of Rs 252 crore in Q2FY23 as compared to Rs 192 crore in Q2FY22 Net Profit of Rs 139 crore in Q2FY23 as compared to Rs 140 crore in Q2FY22 EPS of Rs 7.13 per share Chairman’s Message: “During a challenging financial quarter, Graphite India reported consolidated Net Sales of Rs 825 Cr, a growth of 19% YoY. EBITDA, before a one time charge of Rs 45 Cr, was Rs 213 Cr and Net Profit was Rs 92 Cr (after the one time charge). From a manufacturing perspective, capacity utilization during the quarter was 56% as compared to 71% in Q1 FY2023. The year on year sales growth was primarily driven by improvement in realizations while volumes remained subdued. The company has a consolidated Net Cash position of Rs 2,112 Cr at the end of September 2022. As reported earlier, the Russia - Ukraine conflict has led to high energy costs which have resulted in our German electrode operations becoming unviable. Hence it was decided to shut down the graphite electrode production as of now and restructure the speciality and coating operations. Alongside these geopolitical headwinds, central banks across the world continue to address the challenge of rising inflation levels by increasing interest rates. This has impacted construction and infrastructure projects across the world, which in turn has lowered the steel production, directly impacting the demand for electrodes. In the last nine months, India stands out as one of the few major economies delivering over 6.0% steel production growth. However, the levy of 15% duty on steel exports continues to impact the Indian steel industry. In summary, Graphite India is well positioned to navigate through these volatile times, with management focused on long term customer relationships and the ongoing pursuit of operational efficiencies.” Result PDF