Slide 1: Exchange filing cover letter for earnings presentation
========~~l==============(]=RE=G~='&=~=OP=':=~='~=H~=wE=RIN=G=!=~=O?=D='~=~=KA=TAL=_=:=~=16=~=:=E=IND=~==~ • PHONE:91 33 4002 9600. 2226 5755/4942 /4943 1 5547 1 2334. 2217 1145/1146 FAX:91 3322496420. E-mail: gilro@graphiteindla.com WEBSITE: www.graphiteindia.com. CIN: L10101WB1974PLC094602 GIL:SEC
Slide 2: Q1 FY2021 Earnings Presentation
NSE: GRAPHITE, BSE: 509488 Q1 FY2021 Earnings Presentation August 12th, 2020
Slide 3: Discussion Agenda
Discussion Agenda Executive Summary_______________________________________ 3 Chairman Message_______________________________________ 4 Covid-19 Impact and Business Response______________________ 5-6 Steel Industry Overview___________________________________ 7-8 Graphite Electrode Industry Overview__
Slide 4: Executive Summary
Executive Summary Q1 FY2021 Financial Performance o Net Sales of Rs. 409 Crores, a decline of 58% y-o-y o Net Sales of Rs. 350 Crores, a decline of 61% y-o-y Q1 FY2021 Profit o Inventory write down of Rs. 159 Crores* Q1 FY2021 Profit o Inventory write down of Rs. 85 Crores* and Loss o EBITDA Loss of
Slide 5: Chairman's Message
Chairman’s Message “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 registered
Slide 6: COVID-19 Impact and Business Response
COVID-19 Impact and Business Response • Covid-19 caused an unprecedented health and economic crisis around the world • Complete or partial lockdown of countries disrupted global economic activity Covid-19 • Overall economic slowdown and sharply lower manufacturing activity has led to steel productio
Slide 7: COVID-19 Business Impact
COVID-19 Business Impact • The Company re-started partial operations from the middle of April, however due to the prolonged lockdown and restrictions on inter-state movement, production and sales were lower than expected in the quarter, which in turn adversely impacted profitability • The demand for
Slide 8: Steel Industry Overview
Steel Industry Overview Crude Steel Production Three Months Ended Half Year Ended (million MT) June-20 June-19 Y-o-Y (%) Mar-20 Q-o-Q (%) June-20 June-19 Y-o-Y (%) Asia 331.2 346.4 (4.4)% 310.8 6.6% 642.0 661.6 (3.0)% India 15.8 27.9 (43.2)% 27.3 (42.1)% 43.1 56.9 (24.2)% China 268.9 261.1 3.0% 230.
Slide 9: Steel Industry Outlook and Dynamics
Steel Industry Outlook and Dynamics ▪ Covid-19 pandemic has significantly impacted the steel industry with the extended lockdown around the world resulting in the partial closure of manufacturing facilities ▪ World crude steel production was 434 Mt in Q2 CY2020, a decline of 9.6% y-o-y and 1.1% decl
Slide 10: Graphite Electrode Industry
Graphite Electrode Industry ▪ Since 2016 China has closed about 300 million tonnes of outdated and highly polluting steel production capacity but around 908 million tonnes still remain. Such closures are being replaced by environment friendly electric arc furnaces (EAF’s) which is supported by incre
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance Q1 y-o-y Q4 q-o-q Year Ended y-o-y Growth Growth Growth (Rs. Crore) FY20211 FY2020 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 409 967 (58%) 602 (32%) 3,094 7,858 (61%) (Excluding Other Income) Lower volumes and Other Income 68 57 19% 23 - 174 210 (17%) rea
Slide 12: Standalone Financial Performance
Standalone Financial Performance Q1 y-o-y Q4 q-o-q Year Ended y-o-y Growth Growth Growth (Rs. Crore) FY20211 FY2020 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 350 897 (61%) 548 (36%) 2,875 6,737 (57%) (Excluding Other Income) Lower volumes and Other Income 67 54 24% 18 - 157 197 (20%) reali
Slide 13: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Sales Standalone Net Sales 897 967 602 548 409 350 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Consolidated Operating Profit / (Loss) Standalone Operating Profit / (Loss) 352 314 36% 35% 39 (3) (5) (63) Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 12 Margins% *
Slide 14: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Profit / (Loss) Standalone Net Profit / (Loss) 220 195 23% 22% 25 (7) (13) (78) Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Consolidated Capacity Utilization Standalone Capacity Utilization 75% 84% 41% 49% 36% 42% Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Ma
Slide 15: Leverage Profile
Leverage Profile Significant financial flexibility available for future organic and inorganic growth Consolidated Leverage Profile Standalone Leverage Profile (Rs. Crore) June-20 Mar-20 Dec-19 Sep-19 June-19 (Rs. Crore) June- 20 Mar- 20 Dec- 19 Sep- 19 June- 19 Cash & Cash Cash & Cash 2,598 2,424 2,
Slide 16: Quarterly Segment Performance
Quarterly Segment Performance Consolidated Segment Performance Standalone Segment Performance Q1 y-o-y Q4 q-o-q Q1 y-o-y Q4 q-o-q Growth Growth Growth Growth (Rs. Crore) FY2021 FY2020 FY2020 (Rs. Crore) FY2021 FY2020 FY2020 (%) (%) (%) (%) Graphite and Carbon 364 933 (61)% 577 (37)% Graphite and Car
Slide 17: Graphite India - At a Glance
Graphite India - At a Glance Company Background Industry Graphite India is the largest Indian producer The Company’s strategy is to become further Graphite electrodes are used in electric arc furnace (“EAF”) of graphite electrodes and one of the largest vertically integrated, continue its penetratio
Slide 18: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Graphite India’s future business developments and economic performance. W