Graphite Aims For Growth Via Export

In 1999-2000, exports went up to Rs 112.66 crore as against the previous year's Rs 109.60 crore. In volume, the growth rate was even higher at 26 per cent.

Although there was a remarkable increase in volume, the modest rise in value terms was due to the steep decline in global electrode prices.

The domestic demand for the company's main money spinner, graphite electrodes, is showing stable signs of improvement. However, Chinese and European producers continue to dump the products at prices lower than the international level.

Last year, the company's net profit went down by 20 per cent even after the sales grew by 10 per cent. Sales had gone up to Rs 217.05 crore from Rs 197.60 crore previous year, whereas net profit had declined to Rs 12.25 crore from 15.46 crore.

Bangur attributed the drop in profit to the huge interest charges on loans which were borrowed at "rates as high as 20 per cent".

"The company has already initiated efforts to reduce the loan burden. It has recently replaced some high cost loans by a number of low cost ones," he added.

Unfolding future plans, he said Graphite has decided to concentrate on core area of activities and would not venture into unrelated businesses. The company is also embarking on an expansion plan which will be funded by borrowing and internal accruals.

The shareholders on Monday passed a resolution pertaining to increase in the authorised share capital from Rs 25 crore to Rs 35 crore to accommodate conversion of optionally convertible debentures.