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.