Graphite India Ltd (GIL) proposes to seek shareholders' approval for buying back ordinary shares at the company's forthcoming annual general meeting scheduled for July 30.
Despite sluggish demand for graphite electrodes, the company posted a 25.66 per cent growth in net profit to Rs 14.15 crore for the financial year 1997-98.
The management has, however, discounted the sluggish state of the domestic demand for graphite electrodes in its strategic plans, and is poised for a steady and continuing exports-led growth in the years to come, the company states in its corporate review for 1997-98.
Meanwhile, the company's secured loans totalled Rs 173.15 crore during the year under review as against Rs 134.79 crore in the previous financial year. Unsecured loan increased from Rs 2.97 crore to Rs 3.16 crore in the previous fiscal. During the year, the company had obtained secured, foreign currency term loans amounting to Rs 11.86 crore and Rs 12.11 crore from American Express Bank Ltd and the Sakura Bank Ltd respectively. Term loan from the Industrial Credit and Investment Corporation of India Ltd stood at Rs 17 crore as compared with Rs seven crore in 1996-97. Foreign currency term loan from IFCI also increased from Rs 23 crore in the previous fiscal to Rs 27.69 crore in 1997-98.
Rupee term loan under production equipment finance programme from Export-Import Bank of India stood at Rs 13.78 crore as against Rs 6.56 crore in 1996-97. Loans and overdrafts from banks was Rs 31.62 crore during the year as against Rs 24.09 crore in 1996-97.
The company has not revalued its fixed assets during the year.
Graphite India, which registered a 26 per cent growth in turnover to Rs 214.28 crore during the year under review, had introduced a voluntary retirement scheme at the managerial level to rationalise operations.
As a result, the company has been able to reduce its employees by one-third. The company proposes to account for the VRS outgo in three tranches. In the last fiscal, it had earmarked Rs 75 lakh on account of the VRS, and intends to account for the same amount in the coming years.
Efforts are on to absorb and streamline various technology upgradation measures which will be coupled with cost reduction steps at all its locations and steady energy cost at the Bangalore unit.
The company has identified exports as its thrust, and various strategies are being built upon with exports as its focal point. As a policy initiative, the company has expanded its export base to Australia, Europe, North America, Middle East and Far East.
