Graphite India - Q4FY21 First Cut - ICICI Direct

(CMP- Rs. 613; MCap- Rs. 11978 crore)

Graphite India reported operationally healthy set of numbers for Q4FY21. For the consolidated operations, in terms of segmental basis, after a period of 5 quarters the Graphite and Carbon segment has reported a positive EBIT. Operational performance was also supported by a sharp drop in raw material costs.

Q4FY21 Earnings Summary - Consolidated Performance

For Q4FY21, on a consolidated basis, Graphite India reported a topline of Rs. 565 crore, up 13% QoQ, down 6% YoY (our estimate of Rs. 687 crore). Consolidated topline came in lower than our estimate on the back of lesser than expected capacity utilisation level. Consolidated capacity utilisation for the quarter stood at 73% as compared to 65% in Q3FY21 and 41% in Q4FY20 (our estimate of 85%)

Reported consolidated EBITDA came in at Rs. 78 crore, as compared to our estimate of Rs. 85 crore. Reported consolidated EBITDA margin stood at 13.8% (our estimate of 12.4%). EBITDA margin was supported by sharp decline in raw material costs. Raw material cost as a % of sales stood at 30% as compared to 69% in Q4FY20 and 66% in Q3FY21. During Q4FY21, other expenses as a % of sales stood at 21% as compared to 10% in Q4FY20 and 14% in Q3FY21. Other expense included provision for unspent CSR expense of Rs. 70 crore. Furthermore, there was also one-time income to the tune of Rs. 10 crore as a refund from Damodar Valley corporation. Adjusted for both the one-off items consolidated EBITDA would have been ~Rs. 138 crore

Graphite and Carbon segment reported healthy performance during Q4FY21. On a consolidated basis, in terms of segmental performance, for Q4FY21 the Graphite and Carbon segment reported a positive EBIT of Rs. 169 crore , as compared to a negative EBIT of Rs. 30 crore in Q4FY20 and a negative EBIT of Rs. 1 crore in Q3FY21
The ensuing consolidated PAT for the quarter under review stood at Rs. 64 crore

Standalone Performance

For Q4FY21, on a standalone basis, Graphite India reported a topline of Rs. 563 crore, up 24% QoQ and 3% YoY. Standalone capacity utilisation for the quarter stood at 85% as compared to 78% in Q3FY21 and 49% in Q4FY20

Reported standalone EBITDA came in at Rs. 128 crore, as compared to Rs. 21 crore in Q4FY20. Reported standalone EBITDA margin stood at 22.7%, as compared to 3.8% in Q4FY20. EBITDA margin was supported by sharp decline in raw material costs. Raw material cost as a % of sales stood at 26% as compared to 65% in Q4FY20 and 58% in Q3FY21. During Q4FY21, other expenses as a % of sales stood at 22% as compared to 9% in Q4FY20 and 10% in Q3FY21. Other expense included provision for unspent CSR expense of Rs. 70 crore. Furthermore, there was also one-time income to the tune of Rs. 10 crore as a refund from Damodar Valley corporation. Adjusted for both the one-off items standalone EBITDA would have been ~Rs. 188 crore

Graphite and Carbon segment reported healthy performance during Q4FY21. On a standalone basis, in terms of segmental performance, for Q4FY21 the Graphite and Carbon segment reported EBIT of Rs. 216 crore , as compared to an EBIT of Rs. 22 crore in Q4FY20 and Rs. 69 crore in Q3FY21

Ensuing standalone PAT for the quarter under review stood at Rs. 114 crore, up 356% YoY and 23% QoQ

Dividend

The company has declared dividend of Rs. 5/share

We would be coming out with a detailed report soon.

Shares of GRAPHITE INDIA LTD. was last trading in BSE at Rs.613.1 as compared to the previous close of Rs. 626.8. The total number of shares traded during the day was 106638 in over 5199 trades.

The stock hit an intraday high of Rs. 635 and intraday low of 609. The net turnover during the day was Rs. 66181492.

Source : Equity Bulls

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