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Graphite India shares fall despite 550% dividend, Q4 profit nearly halves
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
For the January – March quarter, Graphite India’s net profit fell by nearly half to ₹16 crore from ₹29 crore it reported during the same period last year.
Shares of Graphite India Ltd. fell as much as 5% on Tuesday after the company recommended a dividend of ₹11 per share of face value of ₹2 each. This is the highest payout announced by the company since June 2019, when it paid ₹35 per share to shareholders.
The dividend announcement is subject to approval of shareholders at the company’s Annual General Meeting, date for which will be announced in due course.
Post approval from shareholders, the dividend will be dispatched within 15 days of the AGM.
Graphite India had announced a dividend of ₹8.5 per share last year, and ₹10 in 2022.
For the January – March quarter, Graphite India’s net profit fell by nearly half to ₹16 crore from ₹29 crore it reported during the same period last year.
The graphite electrode manufacturer reported an operating loss of ₹10 crore, compared to a positive EBITDA of ₹62 crore in the year-ago quarter.
Revenue for the quarter also declined by 12% year-on-year to ₹720 crore.
In a note on February 22, brokerage firm Jefferies has increased its price target on Graphite India to ₹650 from ₹543 earlier. It had cut Graphite’s financial year 2025 and 2026 EBITDA estimates by 2% to 7%.
Shares of Graphite India are trading 4.9% lower at ₹617. The stock has risen 90% in the last 12 months and 12% so far in 2024.
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