Graphite India Limited · NSE:GRAPHITE
Graphite India — Q2 FY2020 Earnings Presentation
16 slides from Graphite India's earnings presentation, Oct 30, 2019
Slide 1: Exchange filing cover letter for earnings presentation
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Slide 2: Q2 FY2020 Earnings Presentation
NSE: GRAPHITE, BSE: 509488 Q2 FY2020 Earnings Presentation October 30th, 2019
Slide 3: Discussion Agenda
Discussion Agenda Executive Summary_______________________________________ 3 Chairman’s Message______________________________________ 4 Steel Industry Overview___________________________________ 5-6 Graphite Electrode Industry Overview________________________ 7 Financial Performance_________________
Slide 4: Executive Summary
Executive Summary Q2 FY2020 Financial Performance o Net Sales of Rs. 882 Crores, a decline of 62% y-o-y Q2 FY2020 Profit o EBITDA of Rs. 191 Crores; Margin of 22% and Loss (Consolidated) o Net Profit of Rs. 185 Crores; Margin of 21% o EPS of Rs. 9.51 per share Balance Sheet o Gross Debt of Rs. 394 C
Slide 5: Chairman's Message
Chairman’s Message “During the quarter, the Company registered Net Sales of Rs. 882 Cr, EBITDA of Rs. 191 Cr and Net Profit of Rs. 185 Cr representing margins of 22% and 21% respectively. The performance was impacted due to lower volumes and realization as compared to same period last year. Net Cash
Slide 6: Steel Industry Overview
Steel Industry Overview Crude Steel Production Three Months Ended Nine Months Ended (million MT) Sep-19 Sep-18 Y-o-Y (%) June-19 Q-o-Q (%) Sep-19 Sep-18 Y-o-Y (%) Asia 338.0 325.5 3.8% 345.1 (2.1)% 1,000.1 940.4 6.3% India 27.5 26.7 3.0% 27.3 0.8% 84.2 81.3 3.5% China 255.2 242.5 5.3% 261.7 (2.4)% 7
Slide 7: Steel Industry Outlook and Dynamics
Steel Industry Outlook and Dynamics ▪ World Steel Association (WSA) has revised its forecasts for global steel demand, which is now expected to reach 1,775 million mt in 2019, a growth of 3.9% as compared to earlier forecast of 1.3% growth or 1,735 million mt. However, this growth is primarily drive
Slide 8: 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Graphite Electrode Industry ▪ Since 2016 China has closed about 300 million tonnes of outdated and highly polluting steel production capacity but around 908 million tonnes still remain.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 9: Consolidated Financial Performance
Consolidated Financial Performance Q2 y-o-y Q1 q-o-q Six Months y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 882 2,345 (62%) 967 (9%) 1,849 4,310 (57%) (Excluding Other Income) Lower volumes, realization Other Income 51 44 16% 57 (11%) 108
Slide 10: Standalone Financial Performance
Standalone Financial Performance Q2 y-o-y Q1 q-o-q Six Months y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 833 2,008 (59%) 897 (7%) 1,730 3,785 (54%) (Excluding Other Income) Lower volumes, realization Other Income 43 42 2% 54 (20%) 97 70 3
Slide 11: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Sales Standalone Net Sales (62)% (59)% 2,345 2,008 967 882 897 833 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Consolidated Operating Profit Standalone Operating Profit (89)% (89)% 1,684 1,409 72% 36% 22% 70% 35% 352 314 19% 191 160 Q2FY19 Q1FY20 Q2FY20 Q2FY
Slide 12: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Profit Standalone Net Profit (83)% (82)% 1,113 912 47% 45% 23% 21% 22% 20% 220 185 195 167 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Consolidated Capacity Utilization Standalone Capacity Utilization 102% 93% 84% 75% 71% 61% Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY
Slide 13: Leverage Profile
Leverage Profile Significant financial flexibility available for future organic / inorganic growth Consolidated Leverage Profile Standalone Leverage Profile (Rs. Crore) Sep-19 June-19 Mar -19 Dec - 18 Sept -18 (Rs. Crore) Sep- 19 June- 19 Mar -19 Dec - 18 Sept -18 Total Debt (394) (389) (359) (279)
Slide 14: Quarterly Segment Performance
Quarterly Segment Performance Consolidated Segment Performance Standalone Segment Performance Q2 y-o-y Q1 q-o-q Q2 y-o-y Q1 q-o-q Growth Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 (Rs. Crore) FY2020 FY2019 FY2020 (%) (%) (%) (%) Graphite and Carbon 860 2,302 (63)% 933 (8)% Graphite and Ca
Slide 15: 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 16: Graphite India Limited contact details
Graphite India Limited (CIN: L10101WB1974PLC094602) 31 Chowringhee Road, Kolkata 700 016 Phone: +91 33 4002 9600 Fax: +91 33 4002 9676 www.graphiteindia.com M.K. Chhajer +91 33 40029622 Graphite India Limited mkchhajer@graphiteindia.com Ravi Gothwal +91 22 6169 5988 Churchgate Partners graphite@chur