Graphite India (509488) Q1 24/25 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2025 were Rs. 728 Crores, down 2.5% year-over-year, with higher volumes offset by lower realizations.

• Consolidated EBITDA reached Rs. 307 Crores, including Rs. 194 Crores in other income; net profit was Rs. 236 Crores versus a loss of Rs. 30 Crores in Q1 FY2024.

• Standalone net sales were Rs. 672 Crores, down 6.7% year-over-year; standalone EBITDA was Rs. 265 Crores, and net profit was Rs. 205 Crores versus a loss of Rs. 27 Crores last year.

• Capacity utilization improved to 87% from 67% in Q1 FY2024.

• Standalone and consolidated unaudited financial results for the quarter ended 30th June 2024 were approved and reviewed, with auditors issuing an unmodified conclusion.

Financial highlights

• Consolidated other income surged to Rs. 194 Crores, up 148.7% year-over-year, driven by favorable treasury market conditions.

• Consolidated net profit margin improved to 32.4% from -4.0% in Q1 FY2024.

• Standalone other income rose 163.9% year-over-year to Rs. 190 Crores.

• EPS (consolidated) was Rs. 12.11; EPS (standalone) was Rs. 10.49.

• Standalone EBITDA margin improved due to lower material and power costs, with total expenses at Rs. 616 Crores in Q1 FY25 versus Rs. 733 Crores in Q4 FY24.

Outlook and guidance

• Global steel demand is forecast to grow by 1.7% in 2024 and 1.2% in 2025, with decarbonization and infrastructure spending supporting demand.

• Steel demand in China expected to remain stable in 2024 but decline by 1.0% in 2025; Indian steel production growth is driven by government infrastructure spending.

• The company is well positioned to benefit from the shift to EAF steelmaking and global decarbonization trends.