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, driven by higher volumes but 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 net profit was Rs. 205 Crores compared to a loss of Rs. 27 Crores in Q1 FY2024.

• 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 EPS was Rs. 12.11 per share; standalone EPS was Rs. 10.49 per share.

• Other income increased significantly due to favorable treasury market conditions.

• Gross debt stood at Rs. 257 Crores (consolidated) and Rs. 172 Crores (standalone); net cash position was Rs. 3,729 Crores (consolidated) and Rs. 3,650 Crores (standalone).

• Inventory was written down to net realizable value, impacting EBITDA; write-downs were Rs. 208 Crores (consolidated) and Rs. 192 Crores (standalone) in Q1 FY2025.

• Total consolidated assets were Rs. 7,167 Crores as of 30th June 2024, with total liabilities at Rs. 1,318 Crores.

Outlook and guidance

• Global steel demand is forecast to grow by 1.7% in 2024 and 1.2% in 2025, with India's steel production expected to rise due to infrastructure spending.

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

• Graphite electrode pricing remains under pressure, and needle coke costs are not declining proportionately, impacting margins.