Graphite India gets stay on unit closure

Graphite India has obtained a stay on Bangalore unit closure order by the Karnataka State Pollution Control Board from the “appellate authority”. As a result the unit (producing graphite and carbon) resumed operation on July 25 after 23 days of work stoppage, the company said. The board had alleged non-compliance of air pollution norms and ordered closure on July 2. Graphite India said its Q1 (FY2013) net profit at Rs 40.55 crore grew 10.0 per cent over Q1 FY2012. “Margins were impacted by overall economic and inflationary pressures,” the company said. The profit growth was offset to certain extent by higher interest costs and depreciation. Interest expense increased from Rs 2.6 crore in Q1 of FY2012 to Rs 5.3 crore in Q1FY2013 owing to an increase in working capital requirement, hardening of interest rates and capital expenditure. As on June 30, the company had total debt of Rs 452 crore and cash and cash equivalents of Rs 231 crore.