Graphite India Ltd share Price Today

Graphite India (GIL) is the largest Indian producer of graphite electrodes by total capacity. Its manufacturing capacity is 98000 tonnes per annum.

• While GIL manufactures a full range of graphite electrodes, it stays focused on the higher margin, large diameter, ultra-high power (UHP) electrodes
• GIL has over 40 years of technical expertise in the industry

Graphite India reported a muted Q3FY23 performance on account of subdued capacity utilisation levels during the quarter.

• For Q3FY23, consolidated capacity utilisation was at 42% compared to 90% in Q3FY22 and 56% in Q2FY23. On the back of lower-than-expected capacity utilisation, consolidated topline came in lower than our estimate. For Q3FY23, GIL reported a consolidated topline of ₹ 701 crore, down 15% QoQ, lower than our estimate of ₹ 1001 crore

 

• Consolidated EBITDA for the quarter was at ₹ 72 crore, down 29% QoQ. Consolidated EBITDA margin for the quarter was at 10.3% compared to 12.4% for Q2FY23

 

• During the quarter, consolidated other income was at ₹ 33 crore, down 50% YoY, 70% QoQ. Ensuing consolidated PAT for the quarter was at ₹ 53 crore

Industrial Goods company Graphite India announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

Consolidated:

• Net Sales of Rs 720 crore, a decline of 11.7% YoY
• EBITDA of Rs 62 crore with margin of 7.5%
• Net Profit of Rs 16 crore
• EPS of Rs 0.80 per share

Standalone:

• Net Sales of Rs 706 crore, a decline of 2.9% YoY
• EBITDA of Rs 66 crore with margin of 9.3%
• Net Profit of Rs 34 crore
• EPS of Rs 1.73 per share

FY24 Financial Highlights:

Consolidated:

• Net Sales of Rs 2,950 crore, a decline of 7.3% YoY
• EBITDA of Rs 160 crore with margin of 5.4%
• Net Profit of Rs 805 crore
• EPS of Rs 41.36 per share
• Gross Debt of Rs 177 crore
• Cash (Net of Gross Debt) of Rs 3,307 crore
• Dividend announced of Rs 11 per share for FY24
• Dividend pay out ratio of 550% on the Face Value

Standalone:

• Net Sales of Rs 2,894 crore, a decline of 0.7% YoY
• EBITDA of Rs 207 crore with margin of 7.2%
• Net Profit of Rs 872 crore
• EPS of Rs 44.62 per share

K K Bangur, Chairman of Graphite India said, “For FY2024, Graphite India delivered Consolidated Net Sales of Rs 2,950 crore, EBITDA of Rs 160 crore and Net Profit of Rs 805 crore, which includes the sale of land in Bengaluru. Although sales volume increased during the year, lower realisations impacted Net Sales by 7.3% compared to the previous year. During Q4 FY24, standalone capacity utilisation increased to 93% as compared to 61% in Q4 FY23. Graphite India is well capitalised with a Net Cash balance of Rs 3,307 crore at the end of March 2024.

Steel demand in developed economies has shown modest near-term growth, with a projected increase of 1.3% in 2024 and a further 2.7% growth in 2025. In China, steel demand remains relatively low as a result of the slowdown in the real estate sector. However, this has been offset by growth from the infrastructure and manufacturing sectors, resulting in 2024 expected demand to be flat compared to the previous year. In sharp contrast, India's steel demand has a positive near-term outlook considering robust plans for infrastructure investments across the country, with an anticipated 8% annual growth rate. The pricing for graphite electrodes continues to remain under pressure while input costs need further correction.

Global decarbonisation of steel will support the EAF manufacturing process, resulting in a significant increase in demand of graphite electrodes in the medium to long term. The current uncertainties in the world economy with persistent inflation, higher interest rates and geopolitical tensions could delay the trend. In alignment with the company’s commitment to sustainability objectives, Graphite India has partly commissioned its first wind power facility for captive consumption, with full commissioning expected by Q1FY25. This initiative will lead to substantial energy cost savings and a reduction in carbon emissions. As Graphite India navigates through this challenging environment, management remains focused on overall operational efficiencies with a long term goal towards a stronger future.”

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