Mumbai, Aug 1 (NationPress) Kolkata-based Graphite India Limited disclosed a significant 43.6% decline in its net profit year-on-year (YoY), dropping to Rs 133 crore from Rs 236 crore during the same quarter last year (Q1 FY25).

Additionally, the company faced a revenue dip of 8.7%, totaling Rs 665 crore, compared to Rs 728 crore a year prior, as per its filing with the stock exchange.

Operating performance also deteriorated, with earnings before interest, taxes, depreciation and amortisation (EBITDA) plummeting 61.2% to Rs 43 crore, down from Rs 113 crore.

The EBITDA margin contracted to 6.5%, a notable decrease from 15.5% in the corresponding quarter of the previous year, according to the company’s regulatory update.

In terms of production, Graphite India currently operates with an annual capacity of 80,000 tonnes in India, maintaining a utilisation rate of 80% to 85%.

The company has unveiled a capacity expansion strategy aimed at adding 25,000 tonnes per year, which will be executed in two phases.

The initial phase will contribute 13,000 tonnes within the next year, while the subsequent phase will add 12,000 tonnes over the next three years.

The total estimated investment for this expansion stands at Rs 600 crore, which includes Rs 100 crore for establishing captive power generation utilizing renewable energy.

Following the announcement of these results, shares of Graphite India Limited experienced an 8% drop on Friday due to the steep decline in earnings for the April–June quarter.

Graphite India Limited (GIL) specializes in producing graphite electrodes, carbon products, and other specialized graphite items.

Founded in 1967, the company has expanded to operate six plants across India and a subsidiary in Germany.

Moreover, the firm is active in hydropower generation, thus contributing significantly to the energy sector.