Graphite India gains 5% on seven-fold jump in Q4 net profit

The company reported net profit at Rs 4.54 billion in Q4FY18 against Rs 620 million in Q4FY17 driven by improved realization and higher capacity utilization.

Shares of Graphite India were up 5% at Rs 766 per share on the BSE in early morning trade after the company reported seven-fold jump in its net profit at Rs 4.54 billion in March quarter (Q4FY18) driven by improved realization and higher capacity utilization. It had profit of Rs 620 million in the same period last year.

Net sales of the company rose more than double from Rs 3.73 billion to Rs 12.12 billion on account of improved realizations and increased sales volume. EBIDTA (Earnings before interest, tax, depreciation and amortization) margins improved from 12% in Q4FY17 to 58% in Q4FY18 supported by improved realization with higher volume and optimum capacity utilization.

However, on sequential basis, net sales and net profit increased by 30% and 33%, respectively. EBITDA margin stood at 36% in Q3FY18.

“The underlying growth was driven by a combination of higher volumes, price realizations and capacity utilizations which increased from 74% to 85% y-o-y. Despite the strong performance in FY2018, our revenue and margin growth was held back by the timing of the fulfillment of certain low price orders both in India and Germany. However, as these orders are mostly completed the benefit of the higher prices will be reflected in our current year financial performance,” said K K Bangur, Chairman, Graphite India.

At 10:00 am; the stock was trading 3.5% higher at Rs 757 on the BSE. A combined 1.82 million shares changed hands on the counter on the BSE and NSE so far.