Graphite India reported a 7.2% rise in net profit at Rs 36.87 crore for the first-quarter (Q1) ended June 30, 2011, compared to a Rs 34.39 crore net in the corresponding quarter previous fiscal. The growth in net profit follows a 23.6% jump in the company's gross sales during the April-June quarter at Rs 334.69 crore (Rs 270.86 crore) due to increased market demand for electrodes.

The company stated: "net profit was up primarily due to higher operating profits, offset to some extent by an increase in interest expense. Interest expense increased to Rs 2.64 crore in Q1 FY2012 from Rs 52 lakh in Q1 FY2011 as a result of an increase in working capital requirements and increasing interest rates."

Electrode sales volumes in the quarter increased by 33% over the previous corresponding quarter. While the company's sales volumes in India grew by 55%, export sales volumes grew by 19% during the quarter. Net sales growth in the non-electrode segments, however, remained relatively flat during Q1 FY2012.

A K.K. Bangur group flagship with interests in graphite electrodes, Graphite India chairman K.K. Bangur said: "Graphite India had a strong start to the fiscal year with significant volume growth, both on a year-over-year and sequential basis. Electrode prices too have remained relatively stable since the beginning of this year."

"Continued strength in global steel production, particularly through the EAF route, is expected to benefit the electrode industry going forward," Bangur added.