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.

• 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.

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

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

• Capacity utilization was 84%, slightly down from 87% in Q2 FY2024.

Financial highlights

• Standalone net sales declined 25.4% year-over-year to Rs. 586 Crores.

• Standalone EBITDA was Rs. 255 Crores; net profit was Rs. 182 Crores, with EPS at Rs. 9.28.

• Consolidated net profit dropped sharply from Rs. 802 Crores in Q2 FY2024 to Rs. 194 Crores in Q2 FY2025, reflecting the absence of the previous year's exceptional gain.

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

• Earnings per share (standalone, basic) for Q2 FY25 was ₹9.28, compared to ₹41.74 in Q2 FY24.

Outlook and guidance

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

• Global steel demand is forecast to drop by 0.9% in 2024 but grow by 1.2% in 2025, with India leading demand growth.

• The company is focused on sustainability and decarbonization, leveraging the shift to EAF steelmaking.

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