Graphite sales up by 22 per cent and net profit by 71 per cent

Kolkata, Jul 31 (UNI) Graphite India Limted has posted impressive performance for the quarter ended June 2007 with the net profit being higher at Rs 32.84 crore as compared to Rs 19.19 crore in the corresponding quarter before the non-recurring income of Rs 96.12 crore from the sale of surplus land at Bangalore.

According to a release, the company had achieved sales from operation of Rs 227.02 crore during the quarter under review as against Rs 186.59 crore in the corresponding quarter of previous year, registering a growth of 22 per cent.

Profit before Tax and extraordinary income was higher at Rs 46.59 crore as compared with Rs 27.84 crore in the corresponding quarter, registering a rise of 67 per cent.

The improvement in the operating performance despite significant appreciation of the Indian currency against other major global currencies had been made possible by increased volumes, higher realisations, cost reduction and higher Plant productivity.

The performance of the Electrode division of the company during the quarter had been satisfactory led by firmness in demand and realisation.

The performance of the sector was linked to the performance of the steel sector as Graphite electrodes were required in the EAF route of steel production.

The steel industry had shown phenomenal growth in recent times and it was expected that the global steel demand will rise by about 4.9 per cent up to 2010.

The National Steel Policy had set a target of 60 million metric ton of steel production by 2010 and to further increase it to a level of 100 million metric ton by 2018.

The major steel producers in India had already announced plans to expand their capacities in line with the National Steel Policy.

Furthermore, as a percentage of total steel production, the production of steel through the EAF route was estimated to rise from current level of 34 to about 38 per cent by 2010.

With growing global steel production and strong consumption level the demand for graphite electrode was expected to remain buoyant in the coming years. Barring unforeseen circumstances, the prospects of the electrode division of the company looked promising.

UNI