Graphite India Q2 Review - Performance Set To Improve Going Forward: ICICI Direct

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.. ICICI Direct Report.Graphite India Ltd. reported a muted set of numbers for Q2 FY22. For the quarter, Graphite India reported consolidated capacity utilisation of 81% compared to 60% in Q2 FY21 and 75% in Q1 FY22 (our estimate 78%). Consolidated topline for the quarter was at Rs 692 crore, up 43% YoY and 13% QoQ (our estimate: Rs 712 crore).Consolidated Ebitda was at Rs 109 crore, down 23% QoQ. Consolidated Ebitda margin came in at 15.8% compared to 23.1% in Q1 FY22. Ensuing consolidated net profit during the quarter was at Rs 128 crore, down 15% QoQ.Key triggers for future price performance:During the quarter ended September 2021 (Q3 CY21), global steel production excluding China registered a strong increase of 15.3% YoY but was down 2.7% QoQ. Chinese steel production for the quarter declined 14.2% YoY and 16.6% QoQ, in line with their strategy to keep steel output at 2020 levels as a part of their goal to reduce carbon emissions. With the decline in steel production and exports from China, there may be a gradual increase in steel production from EAF steel producing countries, which augurs well for both graphite electrode demand and realisations.During quarter ended September 2021, Indian steel production increased 9.5% YoY and 3.2% QoQ. The Indian steel demand outlook for the remaining part of the year looks encouraging with the pick-up in demand from Infrastructure and construction sector. With the improved demand scenario, an uptick was witnessed in graphite electrode prices but needle coke prices also continue to rise in tandem..Click on the attachment to read the full report:. DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.. Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Graphite India Q2 Review - Performance Set To Improve Going Forward: ICICI Direct

Graphite India Q2 Review - Performance Set To Improve Going Forward: ICICI Direct

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