Graphite India rose 2.15% to Rs 491.65 after the company's consolidated net profit surged 473.91% to Rs 132 crore on 76.35% increase in net sales to Rs 880 crore in Q3 December 2021 over Q3 December 2020.
The company said that sales were driven by higher volumes and realizations both on y-o-y and q-o-q basis.On a consolidated basis, profit before tax (PBT) spurted 254% year-on-year to Rs 184 crore in Q3 December 2021. EBITDA surged 199% to Rs 203 crore in Q3 December 2021. EBITDA margin stood at 23% in Q3 December 2021 as against 14% in Q3 December 2020.
Total expenses rose 29.52% year-on-year to Rs 759 crore in Q3 December 2021. Cost of raw material consumed increased 71.37% to Rs 425 crore. Power and Fuel expense rose 67.11% to Rs 127 crore.
The company said that the recent announcement of the increased government spending on Indian infrastructure and the revival of key sectors such as construction, mining, capital goods and automobiles could have a positive impact on steel production and electrodes demand. Withdrawal of custom duty in India on scrap imports should benefit EAF steel manufacturers. Needle coke price and other input costs are witnessing a rising trend.
The company's consolidated capacity utilization stood at 90% in Q3FY22 as against 81% in Q2FY22 and 65% in Q3FY21.
The firm's net cash stood at 2,452 crore in Q3FY22 as against Rs 2,631 crore in Q2FY22 and Rs 2,600 crore in Q3FY21.
Graphite India is the largest Indian producer of graphite electrodes and one of the largest globally, by total capacity. Its manufacturing capacity of 98,000 tonnes per annum is spread over three plants at Durgapur and Nashik in India and Nurnberg in Germany. It manufactures the full range of graphite electrodes but stays focused on the higher margin, large diameter, ultra-high power ("UHP") electrodes.
Graphite electrodes are used in electric arc furnace ("EAF") based steel mills and is a consumable item for the steel industry.
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