ICICI Direct: Graphite India Posts Muted Q1 Performance; Outlook Remains Challenging
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ICICI Direct Report
Graphite India Ltd. reported a subdued set of Q1 FY21 numbers wherein it reported a consolidated loss at the Ebitda, profit after tax level. During the quarter, the performance was impacted by inventory write down taken by the company.
For Q1 FY21, Graphite India reported a consolidated topline of Rs 409 crore (down 58% YoY, 32% QoQ), compared to our estimate of Rs 335 crore. Better than expected topline was on account of higher-than-expected capacity utilisation.
Consolidated capacity utilisation in Q1 FY21 was at 36% (75% in Q1 FY20, 41% in Q4 FY20), higher than our estimate of 30%. Consolidated other income for the quarter was at Rs 68 crore (up 196% QoQ), higher than our estimate of Rs 20 crore.
Consolidated Ebitda loss came in at Rs 131 crore (our estimate of consolidated Ebitda loss of Rs 70 crore). Net consolidated loss was at Rs 78 crore (our estimate of consolidated net loss of Rs 68 crore).
During the quarter, Graphite India had recognised it carrying inventory on net realisable value (NRV) basis to the extent applicable and has accordingly taken a charge of Rs 159 crore on the cost of inventory. This resulted in negative reported Ebitda and net loss for the quarter.
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