Graphite India (509488) Q4 23/24 earnings summary

Executive summary

• Revenue from operations remained flat at ₹2,894 crore in FY 2023-24 compared to ₹2,913 crore in FY 2022-23, with profit before tax (PBT) before exceptional items dropping to ₹125 crore from ₹476 crore year-over-year due to lower realizations and higher costs, despite higher production volumes.

• Exceptional gain of ₹954 crore from the sale of land in Bengaluru significantly boosted net profit, resulting in a reported profit after tax (PAT) of ₹872 crore versus ₹350 crore last year.

• The Board recommended a final dividend of ₹11 per share, up from ₹8.50 per share in the previous year.

Financial highlights

• Standalone revenue: ₹2,894 crore (FY24) vs ₹2,913 crore (FY23); consolidated revenue: ₹2,950 crore (FY24) vs ₹3,181 crore (FY23).

• Standalone PAT: ₹872 crore (FY24) vs ₹350 crore (FY23); consolidated PAT: ₹805 crore (FY24) vs ₹199 crore (FY23).

• Exceptional item: ₹954 crore gain from land sale.

• Operating profit margin (excluding exceptional item): 6.52% (FY24) vs 17.42% (FY23).

• Net profit margin: 30.12% (FY24) vs 12.01% (FY23), driven by the one-time land sale gain.

• Return on net worth: 16.31% (FY24) vs 7.54% (FY23).

• Debt-equity ratio improved to 0.02:1 from 0.07:1.

Outlook and guidance

• Management expects Indian steel demand to grow at 8% annually in 2024 and 2025, supported by infrastructure investments.

• Strategic initiatives include cost optimization, operational efficiencies, and renewable energy projects to improve margins.

• Global steel demand is expected to recover, with EAF-based steelmaking driving long-term graphite electrode demand.