Graphite India reports pre-tax loss in Q1 on lower volumes

Graphite India Limited (GIL), Kolkata, India, reported a pre-tax loss of Rs 80 crore in the June quarter compared to a pre-tax profit of Rs 333 crore in the same period last year on the back of lower volumes and realization, Business Standard reports. Graphite India is the pioneer in India for manufacture of graphite electrodes as well as carbon and graphite speciality products.Net sales at Rs 409 crore were down 58 per cent.

Krishna Kumar Bangur, Chairman,┬ásaid, “The quarter started on an unprecedented note with the announcement of the nationwide lockdown in an attempt to contain the outbreak of Covid-19. From mid April, we gradually started resuming operations at our factories and offices in a calibrated manner.”

Graphite India┬áregistered consolidated net sales of Rs 409 crore, EBITDA loss of Rs 63 crore after an inventory write down of Rs 159 crore and a net loss of Rs 78 crore during the quarter. “The capacity utilization was 36 per cent as compared to 75 per cent in Q1 FY2020. Despite a challenging environment, our balance sheet remains robust with a net cash balance of Rs 2,290 crore at the end of June 2020,” Bangur added.

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