- 07 Aug 2024
- ICICI Securities
Key player witnessed turnaround in Q1FY25
News: Graphite India, leading graphite electrode manufacturer in India, witnessed a turnaround in operational performance in Q1FY25. On the standalone basis, total operating income came in at ₹ 672 crore (down 7% YoY and 5% QoQ). EBITDA for the quarter stood at ₹ 75 crore with corresponding EBITDA margins at 11% vs -1% in Q4FY24 and -12% in Q1FY24. PAT (including other income) in Q1FY25 stood at ₹ 205 crore.
Views: Sales volume increased in the quarter but revenue was affected by a decline in realization on YoY basis. The company’s 11% o/p margin profile comes after a gap of four quarters of muted performance. EBITDA for the quarter improved due to lower raw material costs. On a standalone basis, it operated at 87% utilisation level, up from 67% utilized in Q1FY24. This results also signify positive development for our coverage company HEG, which operates in a similar domain. We expect HEG to report healthy performance in Q1FY25 with EBITDA margins anticipated to exceed ahead of Graphite India.
Impact: Positive