Graphite India Limited · NSE:GRAPHITE
Graphite India — Q3 FY2020 Earnings Presentation
16 slides from Graphite India's earnings presentation, Feb 14, 2020
Slide 1: Cover letter to stock exchanges on earnings presentation
GRAPHITE INDIA LIMITED REGD. & H.O. : 31, CHOWRINGHEE ROAD, KOLKATA - 700 016, W.B., INDIA PHONE: 91 33 4002 9600, 2226 5755/4942 1 4943 1 5547 1 2334, 2217 1145/1146 FAX: 91 33 2249 6420, E-mail: gilro@graphiteindia.com WEBSITE : www.graphiteindia.com. CIN : L10101WB1974PLC094602 GIL:SEC: 19/20: Fe
Slide 2: Q3 FY2020 Earnings Presentation
NSE: GRAPHITE, BSE: 509488 Q3 FY2020 Earnings Presentation February 14th, 2020
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 Q3 FY2020 Financial Performance o Net Sales of Rs. 643 Crores, a decline of 65% y-o-y o Net Sales of Rs. 597 Crores, a decline of 62% y-o-y Q3 FY2020 Profit o EBITDA Loss of Rs. 445 Crores Q3 FY2020 Profit o EBITDA Loss of Rs. 451 Crores and Loss o Adjusted EBITDA1 of Rs. 84 Crores
Slide 5: Chairman's Message
Chairman’s Message “During the quarter, the Company’s performance was significantly impacted due to lower volumes and realizations. Furthermore, profitability declined mainly due to a non-cash fair value adjustment of inventory at Net Realizable Value as per Ind AS, of Rs. 490 Cr in Q3 FY20 and Rs.
Slide 6: Steel Industry Overview
Steel Industry Overview Crude Steel Production Three Months Ended Year Ended (million MT) Dec-19 Dec-18 Y-o-Y (%) Sep-19 Q-o-Q (%) Dec-19 Dec-18 Y-o-Y (%) Asia 326.7 318.9 2.4% 338.0 (3.4)% 1,327.9 1,254.5 5.9% India 27.3 28.0 (2.3)% 27.5 (0.8)% 111.2 109.3 1.8% China 246.1 234.7 4.8% 255.2 (3.6)% 9
Slide 7: Steel Industry Outlook and Dynamics
Steel Industry Outlook and Dynamics ▪ As per World Steel Association (WSA) Global crude steel production reached 1,869.9 Mt for the year CY2019, up by 3.4% compared to CY2018. Crude steel production contracted in all regions in CY2019 except in Asia and the Middle East ▪ In CY2019, Asia crude steel
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Graphite Electrode Industry ▪ Since 2016 China has closed about 300 million tonnes of outdated and highly polluting steel production capacity but around 908 million tonnes still remain.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 Q3 y-o-y Q2 q-o-q Nine Months y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 643 1,855 (65%) 882 (27%) 2,492 6,165 (60%) (Excluding Other Income) Lower volumes and Other Income 43 66 (35%) 51 (16%) 151 140 8
Slide 10: Standalone Financial Performance
Standalone Financial Performance Q3 y-o-y Q2 q-o-q Nine Months y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 597 1,562 (62%) 833 (28%) 2,327 5,347 (56%) (Excluding Other Income) Lower volumes and Other Income 42 64 (34%) 43 (2%) 139 134 4% r
Slide 11: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Sales Standalone Net Sales (65)% (62)% 1,855 1,562 882 833 643 597 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Consolidated Operating Profit Standalone Operating Profit (139)% (148)% 1,149 932 191 62% 160 60% 22% 19% (445) (451) Q3FY19 Q2FY20 Q3FY20 Margins
Slide 12: Quarter Performance Trends
Quarter Performance Trends Consolidated Net Profit Standalone Net Profit (146)% (158)% 764 609 185 167 41% 39% 21% 20% (353) (356) Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Consolidated Capacity Utilization Standalone Capacity Utilization 86% 80% 71% 61% 54% 45% Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3
Slide 13: Leverage Profile
Leverage Profile Significant financial flexibility available for future organic / inorganic growth Consolidated Leverage Profile Standalone Leverage Profile (Rs. Crore) Dec-19 Sep-19 June-19 Mar -19 Dec –18 (Rs. Crore) Dec- 19 Sep- 19 June- 19 Mar -19 Dec - 18 Cash & Cash Cash & Cash 2,523 2,327 3,1
Slide 14: Quarterly Segment Performance
Quarterly Segment Performance Consolidated Segment Performance Standalone Segment Performance Q3 y-o-y Q2 q-o-q Q3 y-o-y Q2 q-o-q Growth Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 (Rs. Crore) FY2020 FY2019 FY2020 (%) (%) (%) (%) Graphite and Carbon 625 1,813 (66)% 860 (27)% Graphite and C
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