Graphite India bottomline under pressure

Graphite India Ltd, one of world's major manufacturers of graphite electrodes, on Thursday reported a net profit of Rs 34 crore on net sales of Rs 271 crore on stand alone basis for quarter to June 2010-2011 against a net profit of Rs 45 crore on net sales of Rs 245 crore during the corresponding period last fiscal. Although the company showed a strong topline growth its bottomline has been down due to low prices of electrodes during the quarter. The company has fimed up plans to increase its electrode making capacity from 9,500 tonne per annum to 20,000 tpa by the third quarter of 2011-12 entailing an investment of Rs 67.50 crore. The company would also increase its power generating capacity from 33 mw at present to 83 mw by the fourth quarter of 2011-12 at an investment of Rs 214 crore.