Graphite India Nashik unit resumes operation

Graphite India share price was locked in 5% upper circuit after the company announced resuming partial operations at Satpur plant.

The company on April 16 told exchanges that it had started partial manufacturing operations at its graphite electrode plant in Satpur, Nashik, Maharashtra, engaging minimum labour.

On March 23, Graphite India – the wholly-owned subsidiary of Graphite Cova GmbH Germany, decided to gradually and completely shut down production.

Graphite India is engaged in the manufacturing graphite electrodes, graphite equipments, steel, glass reinforced plastic (GRP) pipes and tanks and generation of hydel power. The firm operates through three segments: graphite and carbon, steel and others.

The performance of the German subsidiaries, which had turned around in FY18, had shown sharp improvement during FY19 following recovery in electrode demand as well as prices.

On a consolidated basis, Graphite India had clocked total turnover of Rs 7,858 crore and registered profits of Rs 3,396 crore for the year ended March 31, 2019.

The midcap company has lost 71% during the last one year and 56% since the beginning of this year.

Recently, the credit rating agency ICRA reaffirmed Graphite India’s long term rating for Rs 1,000 crore line of credit for working capital at ICRA (AA+)

ICRA also reaffirmed the short-term rating for Rs 1,000 crore line of credit for working capital of the company at ICRA A1+

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