Graphite India reports $67 million profit in March-ending quarter

Monday, 14 May 2018 22:54:04 (GMT+3)   |   San Diego
       

Graphite India recently reported a seven-fold jump in its net profit at Rs 4.54 billion (US$67 million) in the March-ending quarter. The Q4 of the 2018 fiscal year was driven by “improved realization and higher capacity utilization,” according to the press release. It had a profit of Rs 620 million (approximately US$9 million) in the same period last year. Net sales of the company rose more than double from Rs 3.73 billion (US$55 million) to Rs 12.12 billion (US$179 million) in the same period.

EBIDTA margins improved from 12 percent in Q4 of the fiscal year 2017 to 58 percent in Q4 fiscal year 2018 supported by improved realization with higher volume and optimum capacity utilization. However, on sequential basis, net sales and net profit increased by 30 percent and 33 percent, respectively. EBITDA margin stood at 36 percent in Q3FY18, which was ended in December 2018.

KK Bangur, Chairman of Graphite India stated, “The underlying growth was driven by a combination of higher volumes, price realizations and capacity utilizations which increased from 74 percent to 85 percent year-on-year.” He added that profits should be stronger in the upcoming quarters of fiscal year 2019 as lower priced contracts have been completed.


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