Graphite India, controlled by Mr K.K. Bangur, is expecting price realisation to improve in 2012-13, thereby boosting the profitability.
India's largest producer of graphite electrodes has recorded 27 per cent rise in net profit to Rs 56 crore, riding on growth in both sales volume as well as price realisation, in the December 2011 quarter compared to the previous year. Gross sales zoomed by 28 per cent to Rs 452 crore during the quarter.
According to a company spokesperson, consumption growth in BRIC region and West Asia has allowed electrode-makers to pass on the cost push to consumer industry, fetching a wider margin.
“Compared to previous quarters, price realisation has improved in the third quarter. Orders due for delivery in the next fiscal will fetch an even higher price,” the official told
Expansion
With the Rs 255-crore expansion plan at its Durgapur facility in West Bengal nearing completion, the company expects to reap maximum harvest of the rising price curve.
“The timing of our expansion plan matches our anticipated business requirements,” company chairman, Mr K.K. Bangur was quoted saying in a press release. The additional 20,000 tonnes capacity will be available for production latest by April.
On the expenditure side, Graphite is now busy finalising the contracts for needle coke supplies for 2012-13 reportedly at a competitive price.