MIRA
INFORM REPORT
|
Report Date : |
27.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
GRAPHITE INDIA LIMITED |
|
|
|
|
Registered
Office : |
31, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
02.05.1974 |
|
|
|
|
Com. Reg. No.: |
21-94602 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.390.768 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L10101WB1974PLC094602 |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Producer of Graphite Electrodes, Anodes and Other Miscellaneous Carbon
and graphite Products. |
|
|
|
|
No. of Employees
: |
2259 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 56000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
31, |
|
Tel. No.: |
91-33-22265755 / 2334 / 4942 / 40029600 |
|
Fax No.: |
91-33-22496420 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
GRAPHITE |
|
|
Factory 1: |
P.O. Sagarbhanga
Colony, Burdwan Durgapur – 713 211, West |
|
Tel. No.: |
91-343-2556641-45 / 2557743 |
|
Fax No.: |
91-343-2550896 |
|
|
|
|
Factory 2: |
88 MIDC Industrial Area, Satpur, Nashik - 422 007, |
|
Tel. No.: |
91-253-2203300 / 2203328 / 2361472 / 2351143 |
|
Fax No.: |
91-253-2350676 |
|
|
|
|
Factory/R
and D Centre 3: |
Visveswaraya
Industrial Area, |
|
Tel. No.: |
91-80-43473300 / 28524061-71 |
|
Fax No.: |
91-80-43473372 |
|
|
|
|
Coke |
|
|
Factory 4: |
Phulwaria,
Barauni - 851 112, |
|
Tel. No.: |
91-6279-232252 |
|
|
|
|
Impervious Graphite Equipment |
|
|
Factory 5: |
C-7 Ambad
Industrial Area, Nashik - 422 010, |
|
Tel. No.: |
91-253-2302100 |
|
|
|
|
Glass Reinforced Pipes/ Tanks |
|
|
Factory 6: |
Gut No. 523/524,
Village Gonde, Taluka – Igatpuri, Nashik - 422 403, |
|
Tel. No.: |
91-2553-225038 /
225039 |
|
|
|
|
Powmex Steels |
|
|
Factory 7: |
AT - Turla, PO -
Jagua, PS - Titilagarh, District Bolangir, Orissa - 767033, |
|
Tel. No.: |
91-6655-220504 /
220505 |
|
|
|
|
Power |
|
|
Factory 8 : |
Chunchanakatte,
K R Nagar Taluk, |
|
Tel. No.: |
91-821-323182 /
681116 |
|
|
|
|
Factory 9 : |
|
|
|
|
|
Sales Office |
407 Ashoka
Estate, 24, |
|
Tel. No.: |
91-11-23314364 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. K. K. Bangur |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Bhaskar Mitter |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K. Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Goenka |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. S. Damani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. V. Lodha |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. R. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. J Balaji Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. D. Curravala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. Venkataramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. B. Gadgil |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. B. Shiva |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
984,567 |
0.50 |
|
|
106,650,580 |
54.59 |
|
|
107,635,147 |
55.09 |
|
|
|
|
|
|
186,261 |
0.10 |
|
|
9,415,450 |
4.82 |
|
|
9,601,711 |
4.91 |
|
Total shareholding of Promoter and Promoter Group (A) |
117,236,858 |
60.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,710,173 |
2.41 |
|
|
734,882 |
0.38 |
|
|
7,721,018 |
3.95 |
|
|
31,107,137 |
15.92 |
|
|
44,273,210 |
22.66 |
|
|
|
|
|
|
11,930,256 |
6.11 |
|
|
|
|
|
|
16,141,529 |
8.26 |
|
|
3,224,747 |
1.65 |
|
|
2,568,994 |
1.31 |
|
|
73,768 |
0.04 |
|
|
48,031 |
0.02 |
|
|
6,720 |
- |
|
|
2,440,475 |
1.25 |
|
|
33,865,526 |
17.33 |
|
Total Public shareholding (B) |
78,138,736 |
39.99 |
|
Total (A)+(B) |
195,375,594 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
195,375,594 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Producer of Graphite Electrodes, Anodes and Other Miscellaneous Carbon
and graphite Products. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Graphite Electrodes, Anodes and Miscellaneous Graphite Products |
M.T. |
55000 |
57241 |
|
Carbon Paste |
M.T. |
25000 |
6883 |
|
Impervious Graphite Equipment and Spares |
M.T. |
650 |
983 |
|
GRP/FRP Pipes and Tanks |
M.T. |
31000 |
9504 |
|
Calcined Petroleum Coke |
M.T. |
30000 |
33768* |
|
Electricity (MU) |
M.T. |
144 |
59* |
|
High Speed Steel |
M.T. |
3750 |
1439 |
|
Alloy Steel |
M.T. |
3000 |
459 |
|
* Includes Captive Consumption |
|
|
|
|
Graphite Electrodes, Anodes and Miscellaneous Graphite Products |
M.T. |
-- |
648 |
|
Calcined Petroleum Coke |
M.T. |
-- |
10956 |
|
Electricity (MU) |
M.T. |
-- |
55 |
GENERAL INFORMATION
|
No. of Employees
: |
2259 (Approximately) |
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|
Bankers : |
·
Bank of ·
Canara Bank ·
Corporation Bank ·
Citibank N.A. ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
ING Vysya Bank Limited ·
Punjab National Bank ·
State Bank of ·
The Hongkong and Shanghai Banking Corporation
Limited ·
UCO Bank |
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Facilities : |
Note Foreign Currency
Term Loan from a bank is secured by way of first charge on certain movable
fixed assets, both present and future, of the Company. Working Capital Loans from Banks are secured / to be secured by first
charge by way of hypothecation of certain stocks and book debts, both present
and future, and secured / to be secured by creation of second charge by way
of mortgage / charge on certain other movable and immovable assets of the
Company, both ranking pari-passu amongst the related chargeholders.
Note During the year, Bonds aggregating US$30000000 (Previous Year – US$
675000) have been converted into Equity Shares and US$200000 (Previous Year –
US$ Nil) have been redeemed on due date. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
|
|
|
Solicitors : |
·
Khaitan and Company ·
Orr, Dignam and Company |
|
|
|
|
Subsidiaries : |
·
·
·
·
Carbon Finance Limited ·
Carbon International Holdings N.V. ·
Graphite Cova GmbH ·
Graphite International B.V. |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.2/- each |
Rs.400.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
195375594 |
Equity Shares |
Rs.2/- each |
Rs.390.751
millions |
|
|
Add: Forfeited Shares |
|
Rs. 0.017
million |
|
|
Total |
|
Rs.390.768 millions |
Notes
Out of the above
Equity Shares, 115458486 Equity Shares of Rs.2/- each have been allotted as
fully paid up pursuant to the Schemes of Amalgamation/Arrangement, without
payments being received in cash.
In terms of the Offering
Circular dated 18th October, 2005, 23865484 Equity Shares of Rs.2/-
each at a premium of Rs.53.31 per share have been allotted as fully paid up
during the year ended 31st March, 2011 upon conversion of 30000
Foreign Currency Convertible Bonds aggregating US $ 30000000.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
390.768 |
343.037 |
341.963 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
13644.216 |
11492.221 |
9841.937 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
14034.984 |
11835.258 |
10183.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2001.707 |
809.782 |
1693.761 |
|
|
2] Unsecured Loans |
649.906 |
1682.793 |
1828.609 |
|
|
TOTAL BORROWING |
2651.613 |
2492.575 |
3522.370 |
|
|
DEFERRED TAX LIABILITIES |
630.247 |
737.621 |
627.621 |
|
|
|
|
|
|
|
|
TOTAL |
17316.844 |
15065.454 |
14333.891 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4409.970 |
4659.296 |
4896.557 |
|
|
Capital work-in-progress |
1121.212 |
195.493 |
139.663 |
|
|
|
|
|
|
|
|
INVESTMENT |
2727.814 |
2527.600 |
1664.153 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7598.162
|
5764.640
|
5306.322 |
|
|
Sundry Debtors |
2855.378
|
2505.874
|
1999.136 |
|
|
Cash & Bank Balances |
302.374
|
755.678
|
1440.899 |
|
|
Other Current Assets |
42.043
|
64.095
|
105.727 |
|
|
Loans & Advances |
1525.076
|
1077.893
|
1422.482 |
|
Total
Current Assets |
12323.033
|
10168.180
|
10274.566 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1611.486
|
1203.527
|
1093.622 |
|
|
Other Current Liabilities |
480.770
|
389.214
|
804.235 |
|
|
Provisions |
1172.929
|
892.374
|
743.191 |
|
Total
Current Liabilities |
3265.185
|
2485.115
|
2641.048 |
|
|
Net Current Assets |
9057.848
|
7683.065
|
7633.518 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17316.844 |
15065.454 |
14333.891 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales/Income from Operations (Net) |
12225.966 |
11311.873 |
11258.774 |
|
|
|
Other Income |
337.728 |
305.808 |
289.050 |
|
|
|
TOTAL (A) |
12563.694 |
11617.681 |
11547.824 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed |
5971.309 |
3416.879 |
4957.632 |
|
|
|
Payments to and Provision for Employees |
843.971 |
743.106 |
749.872 |
|
|
|
Other Manufacturing, Selling and Administrative Expenses |
3841.495 |
2610.318 |
4381.058 |
|
|
|
Increase/Decrease in Work-in-Progress and
Finished Goods |
(1222.249) |
754.612 |
(1151.137) |
|
|
|
TOTAL (B) |
9434.526 |
7524.915 |
8937.425 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3129.168 |
4092.766 |
2610.399 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
50.358 |
104.876 |
259.344 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3078.810 |
3987.890 |
2351.055 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
393.327 |
395.369 |
343.520 |
|
|
|
|
|
|
|
|
|
Less |
PAYMENTS UNDER
VOLUNTARY RETIREMENT SCHEME |
127.309 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2558.174 |
3592.521 |
2007.535 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
835.000 |
1270.878 |
71.842 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1723.174 |
2321.643 |
1935.693 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1104.613 |
443.951 |
108.348 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER
FROM DEBENTURE REDEMPTION RESERVE |
680.406 |
39.004 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
1000.000 |
1000.000 |
|
|
|
Dividend paid on Equity Shares |
41.765 |
0.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
683.815 |
600.285 |
512.919 |
|
|
|
Dividend Tax |
117.868 |
99.700 |
87.171 |
|
|
BALANCE CARRIED
TO THE B/S |
1664.745 |
1104.613 |
443.951 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
5819.581 |
5191.687 |
5881.147 |
|
|
|
Royalty |
33.473 |
31.295 |
56.954 |
|
|
|
Interest |
3.064 |
8.639 |
20.560 |
|
|
|
Dividend |
12.141 |
0.000 |
13.468 |
|
|
|
Service Charges |
3.994 |
0.315 |
0.521 |
|
|
|
Discount on Buyback of FCCB |
0.000 |
0.000 |
41.485 |
|
|
TOTAL EARNINGS |
5872.253 |
5231.936 |
6014.135 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3599.236 |
2918.798 |
2922.536 |
|
|
|
Components and Spare Parts |
44.490 |
25.267 |
8.672 |
|
|
|
Capital Goods |
202.358 |
29.355 |
0.000 |
|
|
TOTAL IMPORTS |
3846.084 |
2973.420 |
2931.208 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
9.19 8.82 |
13.58 12.03 |
12.55 12.55 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3185.200 |
4615.600 |
|
Total Expenditure |
|
2570.700 |
3859.700 |
|
PBIDT (Excl OI) |
|
614.500 |
755.900 |
|
Other Income |
|
69.100 |
11.200 |
|
Operating Profit |
|
683.600 |
767.100 |
|
Interest |
|
26.400 |
25.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
657.200 |
742.100 |
|
Depreciation |
|
98.500 |
98.900 |
|
Profit Before Tax |
|
558.700 |
643.200 |
|
Tax |
|
190.000 |
224.400 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
368.700 |
418.800 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
368.700 |
418.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
13.72
|
19.98
|
16.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.92
|
31.76
|
17.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.29
|
24.23
|
13.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.30
|
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42
|
0.42
|
0.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.77
|
4.09
|
3.89 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS REVIEW
As per Central Statistical Organisation, the
Indian Economy – led by a resurgencein agriculture, services and manufacturing
sectors – is estimated to grow by a robust 8.6% in FY 2010-11. In 2009-10, the
Indian Economy grew by 8%. The farm sector which grew by a meagre 0.4 % in
2009-10 is estimated to turnaround with an impressive 5.4% growth in2010-11,
while manufacturing and services sectors are expected to post consistent growth
levels of 8% and 9.6% respectively.
The GDP forecast for 2011-12 is set at 9%,
subject to certain assumptions.
The United Nations Industrial Development
Organisation, in one of its publications, has commended
The world economy too registered a rapid
recovery - led by
GRAPHITE
Gross sales for
2010-11 were Rs.12800.000 millions as against Rs.11780.000 millions in the
previous year and PAT was Rs.1720.000 millions for the current year as against
Rs.2320.000 millions in the previous year. The Company’s Graphite and Carbon
Segment (Graphite Electrodes) continues to be the main source of income and
profit for the Company, accounting for about 81% of the total revenues.
With improved
market demand for electrodes, capacity utilisation registered a steady rise
every quarter and the growth in sales was driven entirely by volume growth.
While volumes increased, electrode prices declined virtually throughout the
year and are reflected in the declining PAT. Capacity utilization of the German
Operations improved as compared to previous year. However due to softening of
prices, results continue to be depressed.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
(I) INDUSTRY’S STRUCTURE AND DEVELOPMENTS
A. GRAPHITE
ELECTRODE BUSINESS
Capacity
utilization of this segment was 73% compared to the previous year of 52%. It is
reported that capacity utilization of the global electrode industry during 2010
was more than 2009.
Graphite Electrode
is used in electric arc furnace (EAF) based steel mills for conducting current
and is a consumable item for the steel industry. The principal manufacturers
are based in
The global crude steel production
during 2010 at 1.4 billion metric tonnes, was more by15% as compared to 1.2
billion metric tonnes in 2009. The share of production through the EAF is
estimated at 30%. Commensurate with this rise, there was significant revival in
the demand for Graphite Electrodes with sales in volume terms registering a
growth of 21% on a Y-O-Y basis. However, there was significant fall in the
Graphite Electrodes prices due to the aggressive pricing policy adopted by the
manufacturers to gain volumes. On 27th December 2010 the Reserve
Bank of
Global industrial
production increased in 2010 though margins in most of the businesses came
under pressure due to higher input costs and lower realisation. The forecast
for global economic prospects for 2011 is positive and it is being upgraded.
With that, the outlook for the steel industry and the Graphite industry is
expected to improve in 2011and 2012.
The Company’s
Order book for FY 2011-12 continues to be comfortable following the continued
economic rebound.
Coke Division
The Coke Division
in Barauni, engaged in the manufacture of Calcined Petroleum Coke (CPC), is one
of the many backward integration initiatives of the Company. The Division also
makes Electrode Paste and Tamping Paste. Two grades of CPC – aluminium and
graphite – are produced here. CPC is a raw material used in the manufacture of
regular and high power grade Graphite Electrode. This is also a critical raw
material for fine grained high density graphite used in speciality graphite
products and impervious graphite equipment. Electrode Paste is used in ferro
alloy smelters and Tamping Paste is used as a lining material in steel and
aluminium smelters.
Production and
sale of Calcined Petroleum Coke were higher both in volume and value terms
during the year in comparison with that of the previous year. Led by the
buoyant domestic market, this Division has performed well during the year.
B. GRAPHITE
EQUIPMENT BUSINESS
The Impervious
Graphite Equipment (IGE) Division is engaged in manufacturing and marketing
heat exchangers, ejectors, pumps and turnkey plants at its Nashik Works. The
Graphite Equipments have wide range of applications in corrosive chemicals
industries such as pharmaceutical, agro-chemical, chloro alkali and fertilizer
industries.
This Division
continues to be under demand pressure due to low levels of fresh investment in
new projects, both within the country and overseas. The effect of the economic
slowdown seems to be fading and the order booking in the current year is better
than the previous year.
This Division is
equipped to meet the challenges of competition from established European and
Japanese producers.
The regulatory
requirement of export licences and the delay in obtaining the same, has to some
extent affected the delivery lead times resulting in loss of some business from
the overseas customers.
C. GRP PIPES AND
TANKS BUSINESS
Glass Reinforced
Plastic (GRP) Pipes and Tanks Division is engaged in manufacturing and
marketing of GRP Pipes and Tanks. The Company converts users of conventional
pipes to GRP through re-engineering, strategic marketing, superior product
quality, competitive pricing and value-added services. Second manufacturing
line with capability to produce pipes up to a diameter of 3000 mm was
commissioned last year. The Division is now poised for higher business volumes
in coming years.
D. POWER
Power constitutes
one of the major costs of Electrode production. The Company has an installed
capacity of 33 MW of power generation through Hydel (19.5 MW) and Multi-fuel
routes (13.5 MW).
Generation through
hydel route was higher by 16% during the year owing to good rainfallin the
region.
Power supply from
Wardha Power Company (WPC), with whom the Company had entered into along term
agreement and had made a commitment to invest Rs.90.000 millions in WPC, is
expected to commence from the first quarter of FY 2011-12.
With a view to
attaining self sufficiency in its electrical energy requirements – both in
terms of the quality of power and its cost per kwh, the Company had decided to
set up a 50 MW Coal based Thermal Power Plant at
E. POWMEX STEELS
DIVISION (PSD)
Powmex Steels is
engaged in the business of manufacturing high speed steel and alloy steel
having its plant at Titilagarh in the State of
(II) SEGMENT-WISE PERFORMANCE
TOTAL SALES OF THE
COMPANY
The Company
achieved a turnover of Rs.12480.000 millions as against Rs.11490.000 millions
in the previous year.
Aggregate Export
Sales of all divisions together was Rs.6310.000 millions as against Rs.5280.000
millions in the previous year.
(a) Graphite and
Carbon Division
Production of
Graphite Electrodes, Anodes and Other Miscellaneous Carbon and Graphite
Products during the year under review was 57,241 MT against 41,086 MT in the
previous year.
Production of
Calcined Petroleum Coke during the year was 33,768 MT as against 30,781MT in
the previous year. Cost of all inputs increased during the year.
(b) Power Division
Total power
generated was 59 million units during the year, as against 55 million units in
the previous year.
(c) Others
Production in the
Impervious Graphite Equipment (IGE) Division and spares at 983 MT was higher as
compared to that of 848 MT in the previous year.
The Glass Reinforced
Plastic Pipes (GRP) Division produced 9,504 MT as against 4,959 MT in the
previous year.
(d) Powmex Steels
Division (PSD)
Production of HSS and Alloy Steels was 1898 MT during the period April, 2010 to February, 2011 as against 1675 MT in the previous year. The Division was making steady progress towards achieving higher production and productivity. However, due to an unfortunate emergency situation, the operations of the Division were suspended with effect from 6 March, 2011 (III) OUTLOOK
In its forecast in
April, the IMF has said that the global economy remains firm on the path to
recovery and that the global economy should grow by 4.4% in 2011. However, it
also cautioned on the challenges of rising oil prices, unrest in the Middle
East, inflation in
It is projected
that Electric Arc Furnaces will contribute to 50% (as against current level of
30%) of global steel production by 2020, in view of the various advantages,
primarily from the point of view of emission of carbon dioxide. This
development will augur well for the growth of graphite electrode demand in
future.
With its
competitive cost structure, strong technical product features and a well
diversified customer base, the Company has established its position in the
global graphite electrode industry and this has significantly enabled the
Company to penetrate the growing market for large diameter UHP graphite
electrodes.
It is expected
that the domestic demand for steel and as a consequence for Graphite Electrodes
will increase moderately. Faced with unfavourable business conditions, the
global players have turned to Asian markets and have started aggressive pricing
policy to capture volumes. During the last couple of months, two major
electrode manufacturers have announced price increase which may lead to
recovery in electrode prices.
CONTINGENT
LIABILITIES
|
Particulars |
As on 31.03.2011 Rs. In Millions |
|
I) Claims not
acknowledged as debts |
|
|
(i) Disputed
Excise Duty for which appeals are pending |
39.401 |
|
(ii) Disputed
Customs Duty for which appeals are pending |
106.075 |
|
(iii) Disputed Service
Tax for which appeals are pending |
21.823 |
|
(iv) Disputed
Sales Tax for which appeals are pending |
50.632 |
|
(v) Disputed
Entry Tax for which appeals are pending |
24.604 |
|
(vi) Others |
29.579 |
|
|
|
|
II) Corporate Guarantees
given to banks to secure the financial assistance/ accommodation extended to Subsidiary Companies |
474.825 |
FIXED ASSETS
·
·
·
Buildings
·
Plant and Machinery
·
Machinery Spares
·
Office Equipment
·
Furniture and Fittings
·
Vehicles
WEB DETAILS
PROFILE
Subject is the
largest producer of graphite electrodes in
Subject
manufactures the full range of graphite electrodes but stays focused on the
higher margin, large diameter, ultra-high power (‘UHP’) electrodes.
Approximately 85% of the Company’s total capacity is currently UHP. Subejct is
well poised in the global graphite electrode industry through its quality,
scale of operations and low cost production base.
The Company also
has facilities designed for the manufacture of Calcined Petroleum Coke (30 KT),
Impervious Graphite Equipment and Glass Reinforced Plastic Pipes and Tanks. It
has an installed capacity of 33 MW of power generation through hydel and
multi-fuel routes.
Constant endeavours towards
re-invention, re-engineering, quality upscaling and customer support, have
helped in enhancing value propositions to their clients. A truly global
company, subject now exports around 65% of its production to over 50 countries.
Subject is working towards achieving an industry preferred status with its
customers worldwide.
BUSINESS
DESCRIPTION
Subject through four segments: graphite and carbon, power, steel and others. Graphite and carbon segment is engaged in the production of graphite electrodes, anodes and other miscellaneous carbon and graphite products. Power segment is engaged in generation of power. Steel segment is engaged in production of high speed steel and alloy steel, and other segment is engaged in manufacturing of impervious graphite equipment (IGE) and glass reinforced pipes (GRP). The Company's coke division in Barauni is engaged in the manufacture of calcined petroleum coke (CPC), electrode paste and tamping paste. The Company has an installed capacity of 33 megawatts (MW) of power generation through Hydel (19.5 megawatts) and Multifuel routes (13.5 megawatts). For the fiscal year ended 31 March 2010, subject's revenues decreased 10% to RS13.79B. Net income decreased less than 1% to RS2.35B. Revenues reflect decreased income from Graphite and Carbon segment and lower income from power segment. Net income partially offset by a decrease in consumption of raw materials, lower employee cost, decreased electricity charges and lower other expenditure.
BOARD OF DIRECTORS
Mr. K. K. Bangur - Non-Executive Chairman of the
Board
Mr. K. K. Bangur
is Non-Executive Chairman of the Board of subject. He has been exposed to
business and industry at an early age and has more than 25 years of experience
in managing the affairs of companies and its business activities. He has been a
director of the Company since July 1988 and Chairman since July 1993. He is
President of All India Organization of Employers (AIOE) and Member, Board of
Governors of Indian Institute of Social Welfare and Business Management
(IISWBM) and Chairman of Council of Indian Employers (CIE). He is a past
President of Indian Chamber of Commerce, Kolkata and Executive Committee member
of FICCI. He is Chairman of the Shareholders / Investors Grievance Committee
and 'Committee for Borrowings' of the Company.
Mr. J. D. Curravala - Non-Executive Independent
Director
Mr. J. D.
Curravala is Non-Executive Independent Director of subject. He qualified
Chartered Accountant and a graduate having wide experience in Finance,
Administration, Corporate Management and Business Operations.
Mr. N. S. Damani - Independent Non-Executive
Director
Mr. N.S. Damani is
Independent Non-Executive Director of subject. He is an industrialist and is
presently Chairman and Managing Director of Simplex Realty Limited. He is a
science graduate and has completed business management studies. He has around
32 years experience in business and industry.
Mr. M. B. Gadgil - Executive Director
Mr. M. B. Gadgil
is Executive Director of subject qualified engineer and has completed business
management studies. He has been with the Company since 1978 and has a
experience in the graphite electrode industry. He was the 'President' of the
Company prior to his elevation as Executive Director.
Mr. Sanjiv Goenka - Independent Non-Executive
Director
Mr. Sanjiv Goenka
is Independent Non-Executive Director of subject. He is Vice Chairman of RPG
Enterprises, one of
Education
B,
Mr. Pradip Kumar Khaitan - Non-Executive Director
Shri. Pradip Kumar
Khaitan is Non-Executive Director of subject. He holds B.Com, L.L.B.,
Attorney-at-Law (Bell Chambers Gold Medalist) is an eminent legal personality
in the country. He is a member of the Bar Council of India, Bar Council of West
Bengal and Indian Council of Arbitration,
Education
LLB ,
Mr. Aditya Vikram Lodha - Independent Non-Executive
Director
Mr. Aditya Vikram
Lodha is Independent Non-Executive Director of subject. He is a qualified
Chartered Accountant and is the Country Managing Partner of Lodha and Company.
He has over 24 years of experience in providing advisory services to a diverse
client base across a wide spectrum of industries. He has handled various
consultancy assignments in fields of corporate restructuring, mergers and
acquisitions, joint ventures, collaborations, business strategy etc. He has
also assisted Indian corporates to raise resources from the overseas capital
markets and also advises many clients on market investments. Mr. Lodha served
as the President of the Indian Chamber of Commerce (ICQ, Kolkata twice i.e., in
1998-99 and in 2001- 02 in its 75th year (Platinum Jubilee Year) as well as
served as the Chairman of its Banking and Finance Committee. He has also served
as a Member of The National Council of CII and was National Committee Chairman
of its Accounting Standards and Corporate Disclosures and Tax Committees. He
served as a member of the High Level Naresh Chandra Committee for corporate
audit and governance, appointed by the Government of India, Governing Body of
Indian Council of Arbitration, Governing Council of the Central Manufacturing
Technology Institute, Bangalore, Peer Review Board of Institute of Chartered
Accountants of India, Industrial Development Bank of India's Eastern Regional
Advisory Board, State Advisory Board on Investment Promotion in Tripura.
Mr. Bhaskar Mitter - Independent Non-Executive
Director
Mr. Bhaskar Mitter
is Independent Non-Executive Director of subject. He is intimately connected
with the business world and has acquired experience over the whole range of
business operations. He is a past President of Associated Chamber of Commerce
and Industry of India and was a Director amongst others of Reserve Bank of
India, Life Insurance Corporation of
Mr. D. J. Balaji Rao - Independent Non-Executive
Director
Mr. D.J. Balaji
Rao is Independent Non-Executive Director of subject. He holds a Degree in
Mechanical Engineering and PG Diploma in Industrial Engineering. He attended
the Advanced Management Program at the European Institute of
Education
Mechanical
Engineering,
Mr. R. Srinivasan - Independent Non-Executive
Director
Shri. Dr. R.
Srinivasan is Independent Non-Executive Director of subject. He has more than
40 years of experience in the banking industry. He held various positions in
banks and finally as Chairman and Managing Director of New Bank of India,
Allahabad Bank and Bank of India. He has been a director of the Company since
October 1993. He was Chairman of Indian Banks Association for several years, a
director of IDBI, Discount and Finance House of India, New India Assurance
Company Limited and ECGC. He was also on various high level Committees
constituted by RBI. He is a member of the Audit Committee and Remuneration
Committee of the Company.
Education
BE Mechanical
Engineering,
Mr. N. Venkataramani - Non-Executive Director
Mr. N.
Venkataramani, Esq., is Non-Executive Director of subject. He is qualified
engineer with experience in managing business enterprises. He was associated
with the Company from October, 1988 till September 1995, was thereafter with
GKW Limited as President of a division and then joined the erstwhile subject in
June, 2001. He was elevated to the post of Executive Director in September,
2001 which he held till his retirement on June 30, 2009. He is a member of
Shareholders/Investors Grievance Committee and 'Committee for Borrowings' of
the Company.
Education
MS Mechanical Engineering,
BS Mechanical
Engineering,
Mathematics,
PRESS RELEASES
PIONEER COKE CALCINATION COMPANY COMPLETES
50 YEARS
Guwahati, December
2 -- A pioneer in petroleum coke calcination industry in Asia, India Carbon
Limited (ICL) is celebrating its golden jubilee year, becoming the first
private company of its size to complete 50 years in the North East. Talking to
reporters at the ICL plant campus in the city today, the company s chairman and
Managing Director, Rakesh Himatsingka, said, ICL is a pioneering unit in the
entire
GRAPHITE
Kolkata, November
14 -- Graphite India Limited (GIL) today reported a 14.9 per cent decline in
its standalone net profit at Rs.420.000 millions in the second quarter this
fiscal from Rs.490.000 millions recorded during the corresponding period last
year. A company release said the profit before EBITDA also registered a 21.8
per cent fall at Rs.770.000 millions in the period compared to Rs.980.000
millions in the corresponding period of 2010-11. The company s gross sales,
however, increased by 41.3 per cent in the second quarter, ending September 30,
2011 at Rs.4790.000 millions from Rs.3390.000 millions during the same period
last fiscal. The release quoted GIL Chairman K K Bangur as saying, Electrode
revenues during the quarter have been encouraging, being supported primarily by
strong volume growth. Our manufacturing units are currently close to full
capacity utilisation levels and our
GRAPHITE
Kolkata, November 14 -- Graphite
India Limited (GIL), India's largest graphite electrode producer, Monday
reported a 14.9 percent decline in its standalone net profit at Rs.420.000
millions in the quarters ending Sep 30, 2011, as against Rs.490.000 millions
during the same period last year.
According to a release here, the
company's EBITDA stood at Rs.770.000 millions in the period compared to
Rs.980.000 millions in the corresponding period last year, registering a dip of
21.8 percent.
Gross sales of the company, however,
increased by 41.3 percent in the second quarter of this fiscal to Rs.4790.000
millions from Rs.3390.000 millions during the same period last fiscal.
Commenting on the results, GIL
chairman K.K. Bangur said: "Electrode revenues during the quarter have
been encouraging, being supported primarily by strong volume growth. Our
manufacturing units are currently close to full capacity utilisation levels and
our
The company said electrode capacity
expansion at
GIL is one of the largest producers
of graphite electrodes globally by total capacity. Its manufacturing capacity
of approximately 78,000 tonnes per annum is spread over four plants at
FINANCIAL RESULT UPDATES
GRAPHITE INDIA LIMITED ANNOUNCES UNAUDITED STANDALONE
SECOND QUARTER AND HALF YEAR RESULTS FOR FY2012
Financial Performance
Q2 FY2012 vs. Q2 FY2011
Gross Sales
increased by 41%
Electrode sales
volume increased by 40%
Average capacity
utilization up from 78% to 97%
KOLKATA,
Commenting on the
results and performance, Mr. K. K. Bangur, Chairman of Graphite
India said:
“Electrode revenues during the quarter have been encouraging, being
supported primarily by strong volume growth. Our manufacturing units are
currently close to full capacity utilization levels and our
Financial Highlights
|
|
Q2 |
y-o-y |
Q1 |
q-o-q |
Half
year |
y-o-y |
||
|
Rs. In millions |
FY2012 |
FY2011 |
Growth (%) |
FY2012 |
Growth
(%) |
FY2012 |
FY2011 |
Growth (%) |
|
Gross Sales |
4790.000 |
3390.000 |
41.3% |
3350.000 |
43.0% |
8140.000 |
6100.000 |
33.4% |
|
Net
Sales |
4620.000 |
3240.000 |
42.5% |
3190.000 |
44.9% |
7800.000 |
5820.000 |
34.0% |
|
Operating Profit |
770.000 |
980.000 |
(21.8)% |
680.000 |
12.2% |
1450.000 |
1600.000 |
(9.60)% |
|
Margin (%) |
16.6% |
30.3% |
|
21.5% |
|
18.6% |
27.6% |
|
|
Net Profit |
420.000 |
490.000 |
(14.9)% |
370.000 |
13.6% |
790.000 |
840.000 |
(5.8)% |
|
Margin (%) |
9.1% |
15.2% |
|
11.6% |
|
10.1% |
14.4% |
|
|
Basic EPS (Rs) |
2.14 |
2.74 |
(21.9)% |
1.89 |
13.2% |
4.03 |
4.66 |
(13.5)% |
|
Operating Profit (net of foreign exchange
gains/losses) |
965.000 |
901.000 |
7.1% |
|
Margin (%) |
20.9% |
27.8% |
|
Operating Profit
includes all foreign exchange gains or losses. For Q2 FY2012 foreign exchange
losses of Rs.198.000 millions have been shown under the head “other
expenditure”. These foreign exchange losses are due to the impact of the
unprecedented depreciation of the Rupee to the US Dollar primarily on foreign
currency loan facilities availed by the Company. Q2 FY2012 Operating Profit, prior to foreign exchange losses, is
Rs.965.000 millions which would
result in an operating margin of 20.9% (compared with an adjusted
Operating Profit of Rs.901.000 millions for Q2 FY2011 with margins of 27.8%).
Global crude steel
production1 has increased by 8.2% from 1,048 million MT in the first nine
months of CY2010 to 1,134 million MT during the same period in CY2011. This
compares with year on year growth for the last quarter of 10.3% and 7.6% for
the first half of CY2011.
|
Steel Production
(million MT) |
Nine
Months Ended |
||
|
Region |
Sep-11 |
Sep-10 |
Change
(%) |
|
|
728.3 |
665.2 |
9.5% |
|
|
53.9 |
51.2 |
5.3% |
|
|
525.7 |
474.9 |
10.7% |
|
|
89.3 |
84.1 |
6.1% |
|
|
36.8 |
32.7 |
12.5% |
|
European
Union |
135.7 |
130.1 |
4.3% |
The global average steel capacity
utilisation has increased significantly from 74.8% in Q3 CY2010 to 78.8% in Q3
CY2011 but decreased from 82.4% at the end of the last quarter. These
utilization levels have ranged between 76% to 83% during the first nine months
of CY2011.
Crude oil prices
declined from approximately $115/barrel at the beginning of Q3 CY2011 to
$103/barrel at the end of the quarter.
Operational Highlights
Q2 FY2012 Business Performance
Q2 FY2012 Gross Sales increased by 41.3%
compared to Q2 FY2011. This was primarily due to increased market demand for
electrodes driving significantly higher volumes. Electrode sales volumes in the
quarter increased by 40% compared to the same period last year. This increase
was driven by both the domestic market as well as exports. Sales volumes in
Operating Profits increased by 12.2%
compared to the previous quarter. During the quarter, the Company has witnessed
increase in input costs other than needle coke. Average capacity utilization
increased from 78% in Q2 FY2011 to 97% in Q2 FY2012. Electrode production has increased
by 24% during this quarter, compared to the same period last year.
Q2 FY2012 Net
Profit increased by 13.6% compared to previous quarter and decreased by 14.9%
as compared to Q2 FY2011. This was due to the unprecedented depreciation of the
Rupee to the US Dollar primarily on foreign currency loan facilities availed by
the Company. Interest expense increased from Rs.8.500 millions in Q2 FY2011 to
Rs.25.000 millions in Q2 FY2012, as a result of an increase in working capital
requirements and firming of interest rates.
Balance Sheet
Graphite
Segment Analysis
|
|
Q2 |
y-o-y |
Q1 |
q-o-q |
Half
year |
y-o-y |
||
|
Rs. In millions |
FY2012 |
FY2011 |
Growth (%) |
FY2012 |
Growth
(%) |
FY2012 |
FY2011 |
Growth (%) |
|
Net
Sales |
4620.000 |
3240.000 |
42.5% |
3190.000 |
44.9% |
7800.000 |
5820.000 |
34.0% |
|
Graphite
and Carbon |
3980.000 |
2750.000 |
45.0% |
2720.000 |
46.5% |
6700.000 |
4870.000 |
37.7% |
|
Power |
110.000 |
80.000 |
34.2% |
60.000 |
92.0% |
170.000 |
150.000 |
12.9% |
|
Steel |
280.000 |
230.000 |
20.3% |
90.000 |
202.6% |
370.000 |
450.000 |
(18.2)% |
|
Unallocated |
380.000 |
280.000 |
36.3% |
390.000 |
(1.5)% |
770.000 |
540.000 |
44.2% |
|
Less:
Inter Segment Sales |
(140.000) |
(100.000) |
|
(70.000) |
|
(210.000) |
(180.000) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before Tax and Interest |
840.000 |
700.000 |
20.3% |
600.000 |
39.2% |
1440.000 |
1270.000 |
13.6% |
|
Graphite
and Carbon |
640.000 |
540.000 |
18.2% |
510.000 |
24.7% |
1150.000 |
1010.000 |
13.5% |
|
Power |
100.000 |
80.000 |
30.0% |
40.000 |
166.9% |
140.000 |
120.000 |
18.5% |
|
Steel |
10.000 |
0.000 |
|
(20.000) |
|
(10.000) |
0.000 |
|
|
Unallocated |
90.000 |
80.000 |
12.4% |
70.000 |
23.8% |
160.000 |
140.000 |
18.3% |
Performance Outlook
The World Steel Association2 now expects
global steel consumption to grow year on year by 6.5% in CY2011 and 5.4% in
CY2012. These forecasts assume that developing economies would continue to
drive global growth and the impact of the European sovereign debt crisis on
Asian demand is contained. The recovery of steel demand in the developed
countries will be relatively modest compared to the more robust growth across
Although Graphite
India’s standalone capacity utilisation levels are currently 97%, the Company
maintains a targeted consolidated annual capacity utilization of approximately
85-90% for FY2012. The Company has secured needle coke supplies until the end
of FY 2012. Graphite
GRAPHITE
Company Background
Graphite
Graphite
The Company’s
strategy is to become further vertically integrated, continue its penetration
of new markets and clients as well as pursue value enhancing inorganic growth
opportunities. Graphite
The Company is further targeting focused
reductions in its manufacturing costs. A capacity expansion plan has been
initiated in its
The Company also
has facilities designed for the manufacture of impervious graphite equipment
and glass reinforced plastic pipes and tanks. It has an installed capacity of
33 MW of power generation through hydel and multi-fuel routes.
Industry
Graphite electrodes are used in electric arc
furnace (“EAF”) based steel mills and is a consumable item for the steel
industry. The graphite electrode industry is highly consolidated with the top
five major global players accounting for 75% of the high end UHP electrode
capacity. Majority of this capacity however, is currently located in high cost
regions like US, Europe and
Due to the global economic recession, demand
for electrodes is currently less than total installed capacity of 1.2 million
MT, of which UHP capacity is 0.9 million MT. Global steel production continues
to recover post-recession.
The EAF method of
manufacturing steel is becoming increasingly attractive due to its low capital
costs, lower breakeven tonnage, and flexibility in locating plants closer to
consumption points and significantly lower pollution levels than in the blast
furnace steel plants. As a result, EAF production has increased from 180
million tonnes in 1985 to 396 million MT in 2010.
UNAUDITED
STANDALONE SECOND QUARTER RESULTS FOR FISCAL 2012
Rs.
In Millions
|
Particulars |
Quarter Ended 30.09.2011 |
Half Year Ended 30.09.2011 |
|
|
|
|
|
Gross
Sales/ Income from Operation |
4791.900 |
8138.800 |
|
Less:
Excise Duty on Sales |
176.300 |
338.000 |
|
(a) Net
Sales / Income from operations |
4615.600 |
7800.800 |
|
(b)
Other Operating Income |
-- |
-- |
|
Total
Income |
4615.600 |
7800.800 |
|
Expenditure |
|
|
|
(Increase)
/ Decrease in stock in trade and work in progress |
370.000 |
180.600 |
|
Consumption
of raw materials |
1674.100 |
3114.900 |
|
Consumption
of stores and spare parts |
516.200 |
932.600 |
|
Purchase
of traded goods |
-- |
-- |
|
Employees
cost |
222.700 |
428.900 |
|
Electricity
Charges |
417.200 |
809.400 |
|
Depreciation |
98.900 |
197.400 |
|
Other
expenditure |
659.500 |
964.000 |
|
Total |
3958.600 |
6627.800 |
|
Profit
from operations before other income, interest and exceptional Items |
657.000 |
1173.000 |
|
Other
income |
11.200 |
80.300 |
|
Profit
before interest and exceptional Items |
668.200 |
1253.300 |
|
Interest |
25.000 |
51.400 |
|
Profit after Interest but
before Exceptional Items |
643.200 |
1201.900 |
|
Exceptional
Items – Payments under Voluntary Retirement Scheme |
-- |
-- |
|
Profit from Ordinary
Activities before tax |
643.200 |
1201.900 |
|
Tax
expense |
|
|
|
-
Current |
228.000 |
418.000 |
|
-
Earlier years |
(3.600) |
(3.600) |
|
Net Profit from Ordinary
Activities after tax |
418.800 |
787.500 |
|
Extraordinary items |
-- |
-- |
|
Net
Profit for the year period |
418.800 |
787.500 |
|
Paid
up equity share capital (Face value of Rs.2/- each) |
390.800 |
390.800 |
|
Reserves
excluding revaluation reserves |
|
|
|
Earning
per share (EPS) – Face Value Rs.2/- each |
|
|
|
Basic
EPS (Rs.) |
2.14 |
4.03 |
|
Diluted
EPS (Rs.) |
2.14 |
4.03 |
|
|
|
|
|
Earning
per share (EPS) excluding Exceptional Items – Face Value Rs.2/- each |
|
|
|
Basic
EPS (Rs.) |
2.14 |
4.03 |
|
Diluted
EPS (Rs.) |
2.14 |
4.03 |
|
|
|
|
|
Public
shareholding |
|
|
|
Number of shares |
78138736 |
78138736 |
|
Percentage of shareholding |
39.99 |
39.99 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
|
|
|
|
|
b)
Non-Encumbered |
|
|
|
Number
of shares |
117236858 |
117236858 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
60.01 |
60.01 |
SEGMENT REPORTING
AS PER CLAUSE 41 OF THE LISTING AGREEMENT
Rs. in Millions
|
Particulars |
Quarter Ended 30.09.2011 |
Half Year Ended 30.09.2011 |
|
|
|
|
|
Segment Revenue |
|
|
|
Graphite and
Carton |
3982.800 |
6701.200 |
|
Power |
112.700 |
171.400 |
|
Steel |
276.600 |
368.000 |
|
Unallocated |
383.300 |
772.600 |
|
Total |
4755.400 |
8013.200 |
|
Less: Inter
Segment Revenue |
139.800 |
212.400 |
|
|
|
|
|
Sales / Income
from Operations Net |
4615.600 |
7800.800 |
|
|
|
|
|
Segment Results |
|
|
|
Profit before
tax and Interest |
|
|
|
Graphite and
Carton |
636.000 |
1145.900 |
|
Power |
99.300 |
136.500 |
|
Steel |
12.200 |
(6.000) |
|
Unallocated |
90.400 |
163.400 |
|
Total |
837.900 |
1439.800 |
|
Less: |
|
|
|
Interest |
25.000 |
51.400 |
|
Other
Unallocable Expenditure / Income (net) |
169.700 |
186.500 |
|
Total profit
before tax |
643.200 |
1201.900 |
|
|
|
|
|
Capital Employed
|
|
|
|
Segment Assets –
Segment Liabilities |
|
|
|
Graphite and
Carton |
14785.700 |
14785.700 |
|
Power |
508.000 |
508.000 |
|
Steel |
1733.800 |
1733.800 |
|
Unallocated |
1058.000 |
1058.000 |
|
Total |
18085.500 |
18085.500 |
STATEMENT OF
ASSETS AND LIABILITIES
Rs. in Millions
|
Particulars |
As at 30.09.2011 (Unaudited) |
|
Shareholders Funds |
|
|
(a) Share Capital |
390.800 |
|
(b) Reserves and Surplus |
14431.700 |
|
|
14822.500 |
|
Loan Funds |
4241.900 |
|
Deferred Tax Liabilities (Net) |
725.700 |
|
Total |
19790.100 |
|
|
|
|
Fixed Assets |
6036.100 |
|
Investment |
2731.900 |
|
|
|
|
Current Assets, Loans and Advances |
|
|
(a) Inventories |
7812.500 |
|
(b) Sundry Debtors |
3725.100 |
|
(c) Cash and Bank Balances |
468.800 |
|
(d) Other Current Assets |
45.400 |
|
(e) Loans and Advances |
1854.400 |
|
|
13906.200 |
|
|
|
|
Less : Current
Liabilities and Provisions |
|
|
(a) Liabilities |
2471.800 |
|
(b) Provisions |
412.300 |
|
|
2884.100 |
|
Net
Current Assets |
11022.100 |
|
Total |
19790.100 |
Note
·
The above results have
been reviewed by the Audit Committee and approved by the Board at its meeting
held on 14th November, 2011. The Auditors of the Company have
carried out a Limited Review of the financial results for the quarter and the
half year ended 30th September, 2011 in terms of Clause 41 of the
Listing Agreement with Stock Exchanges.
·
Other expenditure for the
quarter and the half year ended 30th September, 2011 includes
exchange loss of Rs. 198.100 Millions and Rs.171.400 Millions respectively.
Other income for the corresponding quarter and the half year ended 30th
September, 2010 includes exchange gain of Rs.80.400 Millions and Rs.47.100
Millions respectively. Such gain for the year ended 31st March, 2011
was Rs.125.200 Millions.
·
Generation of power at
hydro electrical plants is seasonal in nature.
·
No investor complaint was
pending at the beginning of the quarter. During the quarter, ten complaints
were received. All the complaints were disposed off / attended to and no
complaint was pending as on 30th September, 2011.
·
Tax expense – Current
comprises current tax and deferred tax. Tax expense – Earlier Years relates to
fringe benefit tax.
·
Figures for the previous
year/period have been re-grouped / re-arranged wherever necessary.
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No records exist designating subject or any
of its beneficial owners, controlling shareholders or senior officers as
terrorist or terrorist organization or whom notice had been received that all
financial transactions involving their assets have been blocked or convicted,
found guilty or against whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist
to suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceeding for making any
prohibited payments or other improper payments to government officials for
engaging in prohibited transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.82 |
|
|
1 |
Rs.82.47 |
|
Euro |
1 |
Rs.68.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.