Graphite India Q3 net profit falls 51.6 % to Rs 20.4 crore

KOLKATA: Graphite India reported a lower net profit of Rs 20.4 crore in the third-quarter (Q3) ended December 31, 2014, compared to a net profit of Rs 42.2 crore in the corresponding period previous year. Gross sales during the said quarter was also down by 27.1 % to Rs 327.0 crore (Rs 448.6 crore) primarily because electrode prices as well as sales volume were lower on a year over year basis.

Operating profit during the October-December period too declined to Rs 45 crore primarily due to the lower volumes and decline in price realizations, the company’s mediastatement stated. Other income too decreased to Rs 3.3 crore in Q3 FY2015 from Rs 10.3 crore in Q3 FY2014.

Capacity utilisation during Q3 FY2015 was 63% compared to 70% in Q3 FY2014. As of December 31, 2014, the company’s total debt stood at Rs 278 crore, cash & cash equivalents at Rs 344 crore, and net worth at Rs 1786 crore.

Graphite India’s capital structure, company officials claim, remains robust and provides financial flexibility for the future. The management is targeting a consolidated capacity utilization of about 65% for FY2015, the release added.