Graphite India Limited

rs,

mited The Corporate Relationship Department 1st Floor, New Trading Ring, Rotunda Bldg., P.J.Towers, Dalal Street, Mumbai 400 001. Scrip Code - 509488 November 09, 2023 The Manager Listing Depa

Rs. 793 Crore

Summary Q2 FY2024 Financial Performance Q2 FY2024 Profit and Loss (Consolidated) o Net Sales of Rs. 793 Crores, a decline of 3.9% y- o-y and an increase of 6.2% q-o-q o EBITDA of Rs. 61* Crores as compared t

3.9%

Performance Q2 FY2024 Profit and Loss (Consolidated) o Net Sales of Rs. 793 Crores, a decline of 3.9% y- o-y and an increase of 6.2% q-o-q o EBITDA of Rs. 61* Crores as compared to Rs. 213 Crores i

6.2%

d Loss (Consolidated) o Net Sales of Rs. 793 Crores, a decline of 3.9% y- o-y and an increase of 6.2% q-o-q o EBITDA of Rs. 61* Crores as compared to Rs. 213 Crores in Q2 FY23 o Net Profit of Rs. 8

Rs. 61

o Net Sales of Rs. 793 Crores, a decline of 3.9% y- o-y and an increase of 6.2% q-o-q o EBITDA of Rs. 61* Crores as compared to Rs. 213 Crores in Q2 FY23 o Net Profit of Rs. 802** Crores as compared to

Rs. 213 Crore

a decline of 3.9% y- o-y and an increase of 6.2% q-o-q o EBITDA of Rs. 61* Crores as compared to Rs. 213 Crores in Q2 FY23 o Net Profit of Rs. 802** Crores as compared to Net Profit of Rs. 92 Crores in Q2 FY

Rs. 802

6.2% q-o-q o EBITDA of Rs. 61* Crores as compared to Rs. 213 Crores in Q2 FY23 o Net Profit of Rs. 802** Crores as compared to Net Profit of Rs. 92 Crores in Q2 FY23 o EPS of Rs. 41.13 per share Q2

Rs. 92 Crore

red to Rs. 213 Crores in Q2 FY23 o Net Profit of Rs. 802** Crores as compared to Net Profit of Rs. 92 Crores in Q2 FY23 o EPS of Rs. 41.13 per share Q2 FY2024 Profit and Loss (Standalone) o Net Sales of

Rs. 41.13

o Net Profit of Rs. 802** Crores as compared to Net Profit of Rs. 92 Crores in Q2 FY23 o EPS of Rs. 41.13 per share Q2 FY2024 Profit and Loss (Standalone) o Net Sales of Rs. 786 Crores, an increase of 9

Rs. 786 Crore

in Q2 FY23 o EPS of Rs. 41.13 per share Q2 FY2024 Profit and Loss (Standalone) o Net Sales of Rs. 786 Crores, an increase of 9.3% y- o-y and 9.2% q-o-q o EBITDA of Rs. 72* Crores as compared to Rs. 207 C

9.3%

per share Q2 FY2024 Profit and Loss (Standalone) o Net Sales of Rs. 786 Crores, an increase of 9.3% y- o-y and 9.2% q-o-q o EBITDA of Rs. 72* Crores as compared to Rs. 207 Crores in Q2 FY23 o Ne

9.2%

2024 Profit and Loss (Standalone) o Net Sales of Rs. 786 Crores, an increase of 9.3% y- o-y and 9.2% q-o-q o EBITDA of Rs. 72* Crores as compared to Rs. 207 Crores in Q2 FY23 o Net Profit of Rs. 8

“Overall, we remain cautiously optimistic about the electrode industry, with a potential growth in construction and infrastructure activity going into next year.”

“It forecasts that steel demand will grow by 1.8% in 2023 and reach 1,814.5 Mt after contracting by 3.3% in 2022.”

“As per the National Steel Policy India has an ambitious target of installing 300 metric ton steel capacity by 2030.”

“India is the world's 4th largest automobile market and is expected to grow at a CAGR of 8 - 10% over the next 10 years ▪ Moreover, the manufacturing sector saw a CAGR of 7 - 8% and this is driving the demand for steel in both the sectors ▪ The production linked incentive scheme has been progressing well in the steel sector.”

Notes

6

Note

2

Notes

1. *The Company, in accordance with the applicable Ind AS, has recognized its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable and has taken a charge on the cost of inventory of Rs. 69 Cr during Q2 FY24 thereby impacting the profitability **Q2 FY24 net profit includes a gain from sale of Bengaluru land All margins calculated as a percentage of Net Sales (excluding Other Income) 2. 3. 3 Chairman’s Message K K Bangur Chairman “In Q2 FY2024, Graphite India delivered Consolidated Net Sales of Rs. 793 Cr, a decline of 3.9% compared to the same quarter last year and a growth of 6.2% compared with Q1 FY2024. Sales volume increased during the period. However, realisations were lower as compared to same period previous year. The Company delivered EBITDA of Rs. 61 Cr in Q2 FY2024 as compared to Rs. 213 Cr in Q2 FY2023. The standalone capacity utilisation during the quarter was 87% as compared to 64% in Q2 FY2023. During the quarter, Graphite India sold its land in

Note

1) Source: World Steel Association, the figures are estimates that may be revised with next month’s production update. Above data represents a total of 64 Countries as per WSA which accounts for 98% of total world crude steel production 2) Source: World Steel Association 6 Graphite Electrode Industry ▪ The evident focus on substantial decarbonization measures in the developed world indicates that the growth of Electric Arc Furnace (EAF) will surpass that of Blast Furnace / Bessimer Oxygen Furnace (BF/BOF) ▪ Governments around the world are introducing stringent environmental regulations to reduce pollution. This is expected to drive the demand for graphite electrodes in the steel industry ▪ The growing demand from the steel industry for electric arc furnace (EAF) steelmaking, increasing usage of EAFs as a more cost-effective and sustainable steel production method and rising demand for high-quality steel products in various sectors such as automotive, construction and infrastructure, i

Note

1) Source: Industry 7 Consolidated Financial Performance (Rs. Crore) Net Sales Excluding Other Income Other Income Total Income EBITDA / (Loss) excluding One Time Income and Expense Margin (%) EBITDA / (Loss) Margin (%) Interest Depreciation Profit / (Loss) Before Tax (before Exceptional items) Exceptional Items # PBT after Exceptional Items Net Profit Margin (%) Earnings Per Share

Notes

1. 2. Q2 y-o-y Q1 q-o-q Half Yearly y-o-y FY2024 FY2023 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) Comments 793 91 884 825 111 936 (3.9%) (18.0%) (5.6%) 747 78 825 6.2% 16.7% 7.2% 61 213 (71.4%) (13) nm 7.7% 25.8% 61 7.7% 213 25.8% 4 19 38 954 992 4 15 194 (45) 149 802 101.1% 92 11.2% (71.4%) - 26.7% (80.4%) nm nm nm (1.7)% (13) (1.7)% 6 18 (37) - - (37) (30) (4.0)% nm (33.3%) 5.6% nm nm nm nm 1,540 169 1,709 48** 3.1% 48** 3.1% 10 37 1 954 955 772 50.1% 1,685 103 1,788 (8.6%) 64.1% (4.4%) 272* (82.4%) 16.1% 272* 16.1% 6 29 237 (45) 192 116 6.9% (82.4%) 66.7% 27.6% (99.6%) nm nm nm 41.13 4.72 nm (1.56) nm 39.57 5.95 nm Y-o-Y and Q-o-Q Sales volume improved but impacted due to lower realizations Increase in treasury income due to land sale proceeds and favorable market condition Increase in Finance Cost due to higher interest rates *EBITDA includes onetime expense of net charge of Rs. 75 Cr (after netting off corresponding provision created in earlier years) charged under 'Po

Notes

1. 2. 41.74 7.13 nm (1.39) nm 40.35 10.39 nm *EBITDA includes onetime expense of net charge of Rs. 75 Cr (after netting off corresponding provision created in earlier years) charged under 'Power and Fuel” expenses during H1 FY23. EBITDA includes Other Income **The Company, in accordance with the applicable Ind AS, has recognized its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable and has taken a charge on the cost of inventory Rs. 69 Cr, Rs. 157 Cr and Rs. 226 Cr during Q2 FY24, Q1 FY24 and H1 FY24 respectively thereby impacting the profitability #Exceptional Item - Q2 FY24 and H1 FY24 represents sale of Bengaluru land All margins calculated as a percentage of Net Sales (excluding Other Income) 3. 4. 9 Quarter Performance Trends Consolidated Net Sales Standalone Net Sales 825 793 747 719 720 786 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Consolidated Operating Profit / (Loss) Standalone Operating Profit / (Loss) 213 26% Q2FY23 (2)% (13) Q1FY24 61 8% Q2FY2

Notes

1. 2. Operating Profit / (Loss) is including Other Income All numbers in Crores unless specifically mentioned 207 29% Q2FY23 (2%) (14) Q1FY24 72 9% Q2FY24 10 Quarter Performance Trends Consolidated Net Profit / (Loss) Standalone Net Profit / (Loss) 802 101% Q2FY24 92 11% Q2FY23 (4)% (30) Q1FY24 Capacity Utilization (Standalone) 64% 67% 815 104% Q2FY24 (4%) (27) Q1FY24 139 19% Q2FY23 87%