Graphite India clocked a 10 % growth in net profit in Q1FY 2013

KOLKATA: Graphite India reported a 10 % growth in net profit at Rs 41 crore for the first-quarter (Q1) ended June 30, 2012, compared to a Rs 37 crore net in the corresponding quarter previous fiscal.

The growth in net profit follows a 30.8 % surge in the company's gross sales during the April-June quarter at Rs 428 crore (Rs 327 crore) due to increased electrode volumes.

In a media statement, the company stated that electrode sales volumes grew by 15% during the quarter driven by the demand in exports markets.

"Margins were impacted by overall economic and inflationary pressures. The net profit growth was offset to certain extent by higher interest costs and depreciation. Interest expense increased from Rs 2.6 crore in Q1 FY2012 to Rs 5.3 crore in Q1 FY2013 due to an increase in working capital requirement, hardening of interest rates and capex," the company's release stated.

Average capacity utilisation increased from 79% in Q1 FY2012 to 89% in Q1 FY2013. Graphite electrode production in Q1 FY2013 increased by 12% compared to Q1 FY2012.

A K.K. Bangur group flagship with interests in graphite electrodes, Graphite India's total debt stood at Rs 452 crore, cash and cash equivalents at Rs 231 crore, net debt at Rs 221 crore and net worth at Rs 1,602 crore as on June 30, 2012.