Graphite India sales top Rs 1000cr mark, net up 37%

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Kolkata, May 12: Graphite India Ltd, the largest manufacturer of graphite electrodes in south Asia with a capacity of 60,000 tonne in India and 18,000 tonne in Germany, has reported a 37% increase in net profit for the year to March 31, 2008, while income from operations grew by 28% during the year.

Riding the growth in steelmaking via the electric arc furnace (EAF) route, which uses graphite electrodes, net profit for the year excluding exceptional income increased to Rs 133.65 crore against Rs 97.63 crore the preceding year,

while sales/ income from operations was Rs 1155.87 crore against Rs 900.01 crore the previous year.

For the quarter to March 31, 2008, sales/income from operation was Rs 360.20 crore against Rs 256.67 crore during the corresponding quarter of the previous year. Net profit for the quarter was higher at Rs 34.27 crore compared with Rs 24.06 crore in the same quarter of the preceding year, a growth of 42%.

The company's board has cleared the Rs 188-crore expansion of the graphite electrode manufacturing capacity at the Durgapur plant in West Bengal by 10,500 tonne.

The board also recommended a dividend of 150% or Rs 3 per Rs 2 share, against Rs 3 per share including special dividend of Rs 1 per share last year.

The company cited increased volumes, better realization, cost reduction and higher plant productivity as factors that helped it report better operational figures in the face of a significant appreciation of the rupee against major global currencies.

It exports almost 70% of its graphite electrode production.

Graphite India said the share of EAF steel in overall production is expected to rise from current levels of 34% to about 38% by 2010, thus boosting demand for graphite electrodes further.