Graphite India gains after Bengaluru plant gets KSPCB approval

Graphite India rose 1.94% to Rs 865 at 9:23 IST on BSE after the company said its Bengaluru graphite electrode plant received 'Consent for Operations' from Karnataka State Pollution Control Board.

The announcement was made after market hours yesterday, 17 December 2018.

Meanwhile, the S&P BSE Sensex was down 159.16 points, or 0.44% to 36,110.91.

On the BSE, 17,000 shares were traded in the counter so far compared with average daily volumes of 52,000 shares in the past two weeks. The stock had hit a high of Rs 877.70 and a low of Rs 863.05 so far during the day. The stock hit a 52-week high of Rs 1,126.40 on 14 August 2018. The stock hit a 52-week low of Rs 597 on 7 February 2018.

Pursuant to the observations made by the Karnataka State Pollution Control Board (KSPCB) during the inspection conducted on 19 September 2018, the company had vide letter dated 16 November 2018 informed KSPCB of the completion of all steps necessary (including the revamping work) in compliance of the observations and requested KSPCB to depute their officials to conduct an inspection of the plant to verify the compliances. Accordingly, the inspection of the plant was conducted on 23 November 2018 by KSPCB officials.

Pursuant to the said inspection, KSPCB renewed the "consent for operations" for a period up to 30 June 2020 only with condition to shift the unit from the existing location. The operations to be carried out in the plant are the same as was being done in recent years (except impregnation) and in line with the application made to KSPCB for the consent. The condition will not have adverse impact on the production capacity of the graphite electrode division as a whole in the medium and long term.

The said consent would be placed before the board of directors of the company for its perusal, discussion and directions on the way forward taking into consideration all factors into account, including the fact that test results conducted for stack emissions are all within the stipulated limits.

Graphite India's consolidated net profit surged 980.58% to Rs 1113 crore on 344.13% spurt in net sales to Rs 2345 crore in Q2 September 2018 over Q2 September 2017.

Graphite India is the pioneer in India for manufacture of Graphite Electrodes as well as Carbon and Graphite Speciality products. The company's manufacturing facilities are spread across 6 plants in India and it has also got a 100% owned subsidiary at Nuremberg, Germany, by name Graphite COVA GmbH.

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