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Consolidated other income for the quarter was at | 78 crore, up 39% QoQ, 15% YoY, higher than our estimate of | 64 crore. Better than expected other income aided consolidated PAT during the quarter. Ensuing PAT during the quarter was at | 150 crore, up 134% QoQ (our estimate: | 149 crore). What should investors do? Graphite India's share price has grown by ~3.7x over...

Over the last few months, there has been a healthy uptick in global steel prices as well as global steel production levels. Graphite electrode players are likely to be one of the key beneficiaries of the current upcycle in steel. During the first four months of CY21, global crude steel production witnessed healthy growth, auguring well for graphite electrode majors. During January-April 2021, global steel production was at 663 million tonnes (MT), up 13.7% YoY. In addition to higher global steel output, steel prices witnessed healthy strength. Both above-mentioned factors, higher global...

The World Steel Association (WSA) forecasts the global steel demand to grow by 5.8% in 2021 primarily supported by a robust consumption growth of 9.1% in China and by substantial fiscal stimulus measures in most of the advanced economies. Domestically, India's steel demand is expected to rebound by 19.8% in 2021 21 after declining 13.7% in 2020, while the growth in 2022 is expected to be lower at 5.9%. The economy has been recovering strongly since August last year, much sharper than...

In line with global steel prices, domestic steel prices have witnessed strong traction over the last eight to nine months, registering a healthy increase in the aforementioned period. Currently, domestic hot rolled coil (HRC) prices (ex-Mumbai) are at | 57500/tonne, up 58% from July 2020 low of | 36500/tonne. Healthy demand both on the global as well as domestic front has aided steel prices to remain firm at higher levels. The strength in steel...

During the quarter, overall recovery in steel production led to a small-pickup in graphite electrodes demand. Going forward, steel industry production growth trend is likely to continue with a healthy recovery in major steel consuming industries like construction and automobiles. The domestic steel industry is also poised to grow with the recent announcement of increased government spending on infrastructure. The combination of these factors may drive demand for steel and graphite electrodes in the near term. Graphite electrode prices have started to stabilise and a positive recovery is likely in coming quarters. Needle coke prices have also stabilised and may...

Revise down capacity utilisation levels on subdued demand On account of subdued demand from the steel sector (especially in H1FY21), we downward revise our capacity utilisation estimates for FY21E. For FY21E, we model capacity utilisation of 50% (downward revise from 75% earlier)....

According to Mordor Intellegence, the market for refractories is anticipated to register a CAGR of 5.2% and reach a size of USD 48 billion by 2023. The increase in demand from iron & steel, glass, nonnon ferrous metals, and power generation industries would fuel the refractories market. Intensifying demand for glass, cement, steel etc. in...

Graphite India reported muted capacity utilisation levels for Q2FY20. For Q2FY20, consolidated utilisation level was at 61% while standalone utilisation was at 71%. Going forward, we expect utilisation to tread upwards from Q2FY20 levels. World Steel Association (WSA) has recently upward revised its forecasts for global steel demand. WSA now expected the global steel demand to reach 1775 million tonne (MT) in CY19, growth of 3.9% vs. earlier forecast of 1.3% growth or 1735 MT. For consolidated operations, we model capacity utilisation of 67.5% for FY20E and 70.0% for FY21E. For...

Orient Refractories' (ORIENT) Q3FY19 revenue rose 26.6% yoy to Rs1.99bn, while our estimate was Rs1.80bn. The strong quarterly performance was a result of stable domestic volumes and higher exports growth, driven by the commencement of new ISO-capacity. EBITDA increased 1.6% yoy and 7.2% qoq, supported by higher revenue, and stood at Rs336mn vs. our estimate of Rs303mn. EBITDA margin contracted 413bps yoy to 16.8%....

First half of current fiscal saw an improvement in finished steel production and consumption, which grew by 6% (yoy) and 7.8% (yoy) to 53.9 mn tons and 47.7 mn tons respectively, compared to a yoy growth of 2.5% and 7.6% respectively...