Graphite India Ltd on Tuesday reported a 94.14 per cent decline in net profit at ₹25 crore for the fourth quarter ended March 2020, impacted by Covid-19 pandemic and subsequent disruptions in the market.

The company had posted a net profit of ₹427 crore in January-March quarter last fiscal, Graphite India said in a regulatory filing.

Revenue from operations fell 60.57 per cent to ₹548 crore during the quarter under review as against ₹1,390 crore in the corresponding period of the previous fiscal.

“The operations of the company were affected in the month of March 2020 due to the temporary shutdown of its factories in due compliance of the nationwide lockdown declared on 24th March, 2020 by the Government of India on account of COVID-19 pandemic,” the company said in a post-earnings statement

“The operations/production have since commenced in a phased manner in its factories since April/May, 2020 adhering to the guidelines/permissions of government authorities as applicable,” it added.

Graphite India’s total expenses declined 27.24 per cent to ₹542 crore as against ₹745 crore in fourth quarter of 2018-19.

“In the previous year, the company had fully charged off the net block of plant, machinery and equipment pertaining to the Bengaluru factory by way of accelerated depreciation, and had provided for (as an exceptional Item) compensation payable to the employees/workers consequent to the closure of the factory’s operations, which has been settled/adjusted in the current year,” it said.

For fiscal year 2019-20, Graphite India’s net profit fell 98.89 per cent to ₹31 crore from ₹2,806 crore in 2018-19.

Revenue from operations in 2019-20 declined 57.32 per cent to ₹2,875 crore as against ₹6,737 crore in 2018-19.

Shares of Graphite India was down 3.90 per cent lower at ₹195.35 apiece on the BSE today.

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