The Hindu Business Line : Graphite India Q4 net up at Rs 28 cr; to pay 60 pc

The board of directors of Graphite India Ltd (GIL) have recommended a dividend of Rs 6 per equity share of Rs 10 each for the year ended March 2006 against Rs 4.50 per share declared last year. The company has been able to declare higher dividend due to higher net profit at about Rs 63 crore compared with about Rs 48 crore in the preceding year.

The fourth quarter of the 2005-06 fiscal also maintained higher net profit at about Rs 28 crore compared with about Rs 15 crore in the corresponding quarter of the previous year. However, the company has achieved sales/income from operations of about Rs 649 crore during the year under review against about Rs 546 crore in the previous year.

Capacity expansion

The Rs 170-crore expansion project for enhancing the graphite electrode manufacturing capacity of the company's Durgapur plant from 14,000 tonnes to 34,000 tonnes was fully commissioned during the third quarter, thereby, figuring it in the top five companies of the world producing graphite electrode, with a combined capacity of 60,000 tonnes in India and 18,000 tonnes in Germany.

Bright prospects

A company press note has stated that the electrode industry is witnessing a phase of stable demand and strengthening prices, leading to optimum capacity utilisation and comfortable order book position. The company exports more than 70 per cent of its graphite electrode production.

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