Kolkata, Oct 24 (UNI) Graphite India Limited has posted an increase in sale by 45 per cent, while its net profit jacked up by 25 per cent for the quarter ended September 30.
The company in a release here today said it had achieved sales/income from operations of Rs 403.33 crore during the quarter under review as against Rs 277.99 crore in the corresponding quarter of the previous year, registering a growth of 45 per cent.
The net profit for the quarter was higher at Rs 47.65 crore as compared to Rs 37.95 crore for the corresponding period previous year registering a growth of 25 per cent.
The improvement in the operating performance despite exchange loss of Rs 26.05 crore due to depreciation of the Indian currency against other major global currencies had been made possible by increased volumes, better realisation, cost reduction and higher plant productivity, the release added.
The performance of the Electrode Division of the company during the quarter had been satisfactory, led by firm demand and realisation, the release said.
'' The performance of the Graphite Industry is linked to that of the steel sector as Graphite Electrodes are required in the EAF route of steel production. The steel industry has shown phenomenal growth in the recent times and it is expected that the global steel demand will rise by about 4.9 per cent up to 2010, '' it stated.
'' The National Steel Policy has set a target of 60 mn Metric tons of steel production by 2010 and to further increase it to a level of 100 mn Metric ton by 2018, '' it said.
'' Furthermore, as a percentage of total steel production, the production of steel through EAF route is estimated to rise from current levels of 34 to about 38 per cent by 2010. With growing global steel production and consumption levels, the demand for graphite electrodes is expected to remain firm in coming years.
However, the present global financial crisis and economic slowdown may in the short term impact the demand-supply dynamics, '' it added.
The generation of power at the company's Hydel Plant at Karnataka till date had not been satisfactory due to paucity of rains in the catchment area, the release said adding the performance of Impervious Graphite Equipment (IGE) Division and Glass Reinforced Plastic Pipes /Tanks division is likely to pick up in the coming quarters and should contribute to the overall performance of the company.
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