Graphite India reports Q1 net profit of Rs 220 cr

Kolkata: Graphite India Limited, the largest Indian graphite electrode producer, recently announced its unaudited Consolidated and Standalone results for the first quarter ended June 30, 2019.

Commenting on the results and performance, K K Bangur, Chairman of Graphite India said, "During the quarter, the company registered net sales of Rs. 967 crore, EBITDA of Rs. 352 crore and net profit of Rs. 220 crore representing margins of 36 per cent and 23 per cent respectively. Graphite India's fundamentals remain strong with quarterly cash flow generation and high EBITDA to cash flow conversion. Net Cash balance at the end of June 2019 was Rs. 2,734 crore, an increase of Rs. 157 crore during the quarter. There is a relative decline in our Q1 FY20 performance compared to the same quarter last year, which was driven by extremely favorable business environment with both strong electrode demand and peak electrode prices globally.

"In the latter part of FY19, prices started to decline after brief spell of stabilization. However, prices came under severe pressure with weakening of global economy due to various factors, which have impacted the overall demand and supply dynamics, putting further downward pressure on our performance."