Industrial goods company Graphite India announced Q1FY24 results: Consolidated Q1FY24: Net sales of Rs 747 crore, a decline of 13.7% YoY and 8.3% QoQ EBITDA of Rs (13) crore as compared to Rs 59 crore in Q1FY23 Net loss of Rs 30 crore as compared to Net Profit of Rs 24 crore in Q1FY23 EPS of Rs (1.56) per share Gross debt of Rs 360 crore Cash (net of gross debt) of Rs 2,115 crore Standalone Q1FY24: Net sales of Rs 720 crore, a decline of 9.8% YoY and 1.0% QoQ EBITDA of Rs (14) crore as compared to Rs 97 crore in Q1FY23 Net loss of Rs 27 crore as compared to Net Profit of Rs 63 crore in Q1FY23 EPS of Rs (1.39) per share Gross debt of Rs 280 crore Cash (net of gross debt) of Rs 1,942 crore K K Bangur, Chairman, Graphite India, said, "In Q1FY24 Graphite India registered Consolidated Net Sales of Rs 747 crore, a decline of 13.7% YoY and a decline of 8.3% on QoQ basis. Operating EBITDA was Rs (13) crore after the provision of inventory write-down of Rs 157 crore which resulted in a Net Loss of Rs 30 crore. The standalone capacity utilization during the quarter was 67% as compared to 80% in Q1FY23. This quarter’s financial results were impacted due to a decline in both realization and volume. Globally, there has been a 1.7% decline in YoY steel production, mainly attributed to subdued demand for electrodes. This has led to reduced capacity utilization and pricing pressures across the industry. Despite this trend, India has displayed resilience, achieving a substantial 7.8% YoY growth in its steel output during Q1FY24. However, the increased availability of imported graphite electrodes has impacted domestic demand and pricing. Raw Material price correction was not aligned with the fall in electrode price impacting operating margins. Higher government spending on infrastructure and increased traction of EAFs in the steel industry will drive medium to long-term growth in coming quarters. Stringent emission regulations enforced by the governments globally are compelling the steel industry to seek the more efficient EAF steelmaking technology, will positively impact the demand for graphite electrodes going forward. From a balance sheet perspective, we maintain a strong consolidated Net Cash position of Rs 2,115 crore at the end of June 2023. We are pleased to announce that on August 07, 2023, Graphite India sold its land in Bengaluru for a cash consideration of Rs 986 crore, which was received in a single tranche. This will be reflected in our H1FY24 Net Cash position. Overall, Graphite India's outlook on the electrode industry's future remains positive. We continue to adopt efficient operational practices and exercise prudent financial management." Result PDF
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