NewKerala.com

Key Points

Graphite India reported a sharp 44% drop in Q1 net profit, with revenue also falling 9%. The company's EBITDA margin contracted significantly to 6.5%, down from 15.5% last year. Shares tumbled 8% following the weak earnings announcement. Despite the downturn, Graphite India has outlined a ₹600 crore expansion plan to boost production capacity.

Key Points: Graphite India Q1 Profit Drops 44% Amid Revenue Decline

  • Q1 net profit plunges 44% YoY to ₹133 crore
  • Revenue declines 9% to ₹665 crore
  • EBITDA margin shrinks to 6.5% from 15.5%
  • Shares drop 8% post-earnings announcement
2 min read

Graphite India's Q1 net profit falls 44 pc, revenue down 9 pc

Graphite India reports 44% fall in Q1 net profit to ₹133 crore, revenue down 9% as EBITDA margins shrink sharply.

"EBITDA margin contracted to 6.5%, down from 15.5% in the corresponding quarter previous year. – Graphite India Regulatory Filing"

Mumbai, Aug 1

Kolkata-based Graphite India Limited on Friday reported a 43.6 per cent year-on-year (YoY) decline in its net profit to Rs 133 crore, compared to Rs 236 crore in the same period previous year (Q1 FY25).

Revenue also slipped 8.7 per cent to Rs 665 crore from Rs 728 crore a year ago, according to its stock exchange filing.

The company’s operating performance weakened further, with earnings before interest, taxes, depreciation and amortisation (EBITDA) plunging 61.2 per cent to Rs 43 crore from Rs 113 crore.

EBITDA margin contracted to 6.5 per cent, down from 15.5 per cent in the corresponding quarter previous year, the company stated in its regulatory filing.

On the production side, Graphite India currently operates with an annual capacity of 80,000 tonnes in India and a utilisation rate of 80 per cent – 85 per cent.

The company has announced a capacity expansion plan of 25,000 tonnes per annum, which will be carried out in two phases.

The first phase will add 13,000 tonnes within the next 12 months, while the second phase will add 12,000 tonnes over the following 36 months.

The total investment for the expansion is estimated at Rs 600 crore, including Rs 100 crore for setting up captive power generation from renewable energy sources.

Following the result announcement, shares of Graphite India Limited fell 8 per cent on Friday after the company reported a sharp drop in its earnings for the April–June quarter.

Graphite India Limited (GIL) makes graphite electrodes, carbon products, and other special graphite items.

The company was set up in 1967 and has now grown to operate six plants in India along with a subsidiary in Germany.

The company is involved in hydel power generation, contributing to the energy sector.

- IANS

Share this article:

Reader Comments

P
Priya S
Such a steep decline in EBITDA margin from 15.5% to 6.5% is worrying 😟 Hope the management has concrete plans to improve operational efficiency. The stock market reaction shows investor concerns.
A
Aditya G
The ₹600 crore expansion plan seems ambitious when current performance is weak. Maybe they should focus on improving existing facilities first? Still, good to see an Indian company thinking big.
S
Sarah B
Interesting to see the renewable energy investment (₹100 crore) as part of expansion. This could give them cost advantages in long run. Indian manufacturing needs more such sustainable approaches.
V
Vikram M
As a shareholder, I'm disappointed but not panicking. The steel industry downturn affects graphite demand. Their German subsidiary might help when European markets recover. Holding my shares for now.
K
Kavya N
80-85% utilization is actually decent in current scenario. The phased expansion makes sense - hope they time it well with market recovery. More Indian companies should plan like this.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50