GRAPHITE INDIA LTD - Q1 FY 2018-19 RESULTS REVIEW

GRAPHITE INDIA LTD

Q1 FY 2018-19 RESULTS REVIEW

Graphite India Limited (GIL) is the pioneer in India for manufacture of Graphite Electrodes as well as Carbon and Graphite Speciality products.

Having started in 1967 GIL has been continually improving its product quality and services thereby scaling newer heights of excellence and  customer recognition .  Its plant and machinery uses state-of-the-art technology to support this commitment.

GIL’s manufacturing facilities are spread across 6 plants in India with an aggregate electrode manufacturing capacity of 80000 tons per annum. GIL has also got a 100% owned subsidiary at  Nuremberg, Germany, by name Graphite COVA GmbH. It houses Electrode and Speciality manufacturing facilities. Here, the Electrode capacity is 18000 tons per annum.

Thus the total group capacity is nearly 98,000 tons per annum. This brings us in league with the top global electrode producers in the world.

Apart from Graphite Electrodes, other main products are –

1)     Speciality Carbon and Graphite                        
2)     Impervious Graphite Equipment

3)     Calcined Petroleum Coke & Carbon Electrode Paste

4)     Glass Reinforced Plastic Pipes

5)     High Speed Steel & Alloy Tool Steels

Besides, GIL also has a Captive Power generation of  27 MW through Hydel and multifuel routes to cater to its captive needs.

The benefits of multi-location facilities, enhanced product range and seamless knowledge integration within the Group has made Graphite India an eminent  global player and a  reliable partner to a multitude of  discerning buyers .

Management Team : KEY PERSONNEL

    Mr K K  Bangur, Chairman

    Mr M B Gadgil, Executive Director

Strategic Business Units :

Electrode – Durgapur, Nashik, Bangalore, Nuremberg(Germany)

Speciality – Nuremberg(Germany), Bangalore, Nashik

Coke and Paste – Barauni

Impervious Graphite Equipment(IGE, Nashik)

GRP – Nashik

Power – Chunchunkatte, Peehali, Bangalore, Nashik

DEMAND-SUPPLY SCENARIO :

From various reports available, we find, the demand supply conditions across the world are favourable to Graphite manufacturers for at least next 5 years to come.

But what are the red herrings or future problems :

Chinese are modernizing almost each of their industries including steel and graphite. It will take time. But, china is never content to supply only for internal demand. It wants to dominate the world supply.

So, when they complete their modernization and expansion, what will happen? We don’t know.

Will our suppliers  modernize better than the Chinese and faster than them? We have to wait and see. But, for at least 5 years, demand position is quite good for Graphite products.

Graphite Rods are required basically for steel making. China is closing down old type steel furnaces and installing electric arc furnaces. They require Graphite electrodes in large quantity – until they make them within china. There is no such efficient centralized futuristic planning anywhere in India or US etc. We don’t look beyond next 2-3 years.

I individual company Initiatives will decide the long term future in India. Government’s Make in India policies are to be tweaked to favour the local manufacturers

But, Graphite India is on good ground for next 5 years.

Now, let us see the q1 FY 19 results.

GRAPHITE INDIA	Jun '18	Mar '18	Dec '17	Sep '17	Jun '17	YOY	QOQ
Net Sales	1,777.00	1,212.22	933.06	461.9	351.02	406.24	46.59
Raw Materials	369	257.55	178.74	146.98	128.18	187.88	43.27
Traded Goods	--	11.8	--	--	--
Increase in Stocks	-135	30.12	3.32	-16.03	-4.23	3091.49	-548.21
Power & Fuel	80	75.76	79.65	72.92	70.9	12.83	5.6
Employees Cost	47	45	44.64	45	41.14	14.24	4.44
Depreciation	11	11.11	11.28	12	12.04	-8.64	-0.99
Other Expenses	116	123.43	108.16	83.11	79.52	45.88	-6.02
P/L Before Other Inc. , Int., Excpt. Items & Tax	1,289.00	657.45	507.27	117.92	23.47	5392.12	96.06
Other Income	28	37.04	11.48	19.24	21.13	32.51	-24.41
P/L Before Int., Excpt. Items & Tax	1,317.00	694.49	518.75	137.16	44.6	2852.91	89.64
Interest	1	1.99	1.71	1.53	0.95	5.26	-49.75
P/L Before Tax	1,316.00	692.5	517.04	135.63	43.65	2914.89	90.04
Tax	458	238.78	176.51	45.7	14.2	3125.35	91.81
Net Profit	858	453.72	340.53	89.93	29.45	2813.41	89.1
Equity Share Capital	39	39.08	39.08	39.08	39.08	-0.2	-0.2
Basic EPS	44	23.22	17.43	4.6	1.51	2813.91	89.49
Diluted EPS	44	23.22	17.43	4.6	1.51	2813.91	89.49
MP	1063
FV	2
PE	6.04
VOLUME	1,633,965
PRICE TREND
07.08.18	1 week	2 week	1 month	3 month	6 month	9 month	1 year
Price	972.75	1006.45	939.8	726	618.95	603.8	239.15
Gain / Loss	9.20%	5.54%	13.03%	46.32%	71.62%	75.93%	344.18%