Graphite India on Wednesday reported 83 per cent fall in its consolidated net profit at Rs 185 crore in the quarter ending September quarter due to lower realisations.
The graphite electrode manufacturer had a profit of Rs 1,113 crore in the year-ago quarter. At the same time, revenue dropped by 62 per cent at Rs 882 crore versus Rs 2,345 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) was down by over 91 per cent at Rs 140 crore while EBITDA margin slipped by 15.8 per cent.
"Lower volumes, realisation and increase in average needle coke cost has impacted the sales and margins as compared to the same period last year," Graphite India said in a statement.
The company said the global slowdown in steel demand coupled with increased steel exports from China is expected to impact the demand of electrodes.
Steel prices also continue to remain under pressure and a combination of these factors have resulted in significant correction of electrode prices. Needle coke prices remained high during the quarter but have started moving down in the current quarter, it added.