Graphite India (509488) Q2 24/25 earnings summary

Executive summary

• Consolidated net sales for Q2 FY2025 were Rs. 643 Crores, down 18.9% year-over-year due to lower realizations and sales volumes.

• Standalone net sales were Rs. 586 Crores, a 25.4% decline year-over-year; standalone net profit was Rs. 182 Crores.

• Consolidated EBITDA reached Rs. 278 Crores, with net profit at Rs. 194 Crores, significantly lower than the prior year due to a one-time land sale gain in Q2 FY2024.

• Results reflect continued operational challenges, including lower electrode prices and inventory write-downs.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved and reviewed without qualification by auditors.

Financial highlights

• Consolidated net sales fell 18.9% year-over-year and 11.7% sequentially; standalone net sales dropped 25.4% year-over-year.

• Standalone EBITDA for H1 FY25 was ₹318 crore, compared to ₹1,136 crore in H1 FY24.

• Earnings per share (EPS) was Rs. 10.00 (consolidated) and Rs. 9.28 (standalone), both down over 75% year-over-year.

• Net profit dropped 75.8% year-over-year due to the absence of the previous year's exceptional gain.

• Inventory was written down to net realizable value, impacting results.

Outlook and guidance

• Steel demand in India is expected to remain robust, driven by infrastructure, real estate, and growth sectors.

• Global steel demand is forecast to decline 0.9% in 2024 but grow 1.2% in 2025; India remains the strongest growth driver.

• The company is focused on sustainability and decarbonization, aiming for carbon neutrality.

• No explicit forward-looking guidance provided; management notes ongoing market headwinds and inventory valuation adjustments due to price declines.