Graphite India Q3 gross earnings up by 2.9 %

KOLKATA: Graphite India reported a 22.16 % rise in net profit at Rs 42.16 crore for the third-quarter (Q3) ended December 31, 2013, compared to a Rs 34.51 crore net in the corresponding quarter previous fiscal. The increase in net profit follows a y-o-y growth of 2.85 % in gross sales at Rs 448.64 crore in the quarter under review compared to Rs 436.19 crore in the corresponding previous quarter.

Domestic sales in the current quarter delivered strong volume growth y-o-y while export volumes were effectively flat. On the other hand, export realisations benefited to some extent on account of rupee depreciation, the company’s media statement issued on Monday stated.

The statement further added profitability benefited from better operating margins and lower finance costs. Interest expense declined to Rs 3.8 crore in Q3 FY2014 (Rs 5.2 crore) due to a decrease in working capital requirements and better inventory management.

A K.K. Bangur group flagship with interests in graphite electrodes, Graphite India’s operating profit increased by 12.6 % y-o-y and margins by 183 bps to 18.1 % because of cost optimization initiatives and reduction in average cost of needle coke consumption. Meanwhile, other income was up at Rs 10.3 crore in the said quarter.

Going forward, the management expects electrode prices to remain under pressure in the coming months on the back of depressed demand. The company is confident of achieving a consolidated capacity utilisation of around 65% for FY2014.

As of December 31, 2013, the company’s total debt was Rs 382 crore, cash and cash equivalents Rs 258 crore, net debt Rs 124 crore and net worth Rs 1,771 crore.