Graphite India reported 45% lower Sep-20 quarter top line sales revenues yoy at Rs485cr. There was a sharp fall in the overall revenues largely due to the plant shutdown in its India plants between end of March and mid-May at the behest of the government. The German plant of Graphite also had to be shut down to adhere to COVID norms.
For the Sep-20 quarter, the company slipped into operating loss of Rs94 from an operating profit of Rs127cr in the Sep-19 quarter. As a result, on a bottom line basis, the PAT also slipped into a loss of Rs41 crore from a profit of Rs185 cr in the previous Sep-19 quarter.
The company predominantly supplies to the steel industry which uses these graphite electrodes for its electric arc furnaces. This company had a fantastic run a couple of years back when steel industry was in the midst of a massive expansion.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Graphite India |
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
485.00 |
882.00 |
-45.01% |
409.00 |
18.58% |
|
Operating Profit |
-94.00 |
127.00 |
Not Relevant |
-144.00 |
Not Relevant |
|
Profit After Tax (PAT) |
-41.00 |
185.00 |
Not Relevant |
-78.00 |
Not Relevant |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ -2.09 |
₹ 9.51 |
|
₹ -4.04 |
|
|
Operating Margins |
-19.38% |
14.40% |
|
-35.21% |
|
|
PAT Margins |
-8.45% |
20.98% |
|
-19.07% |
|
Key takeaways from the Sep-20 quarter results
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The company has faced challenges in the last couple of years even apart from the pandemic as demand for electrodes from the manufacturing industry had fallen. However, with domestic steel demand picking up and output getting back to normal, thing are expected to improve for the company too.
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