The largest manufacturer of electrodes in the country, Graphite India Ltd has posted a 37 percent rise in net profit at Rs 133.65 crore during the year ended on March 31, 2008, as compared to Rs 97.63 crore during the same period of the preceding year.

The company’s income from operations grew 28% to Rs 1155.87 crore against Rs 900.01 crore during the previous year.

For the three months period ended March 31, 2008, Graphite India has registered a 42 per cent rise in net profit, which stood at Rs 34.27 crore, as against Rs 24.06 crore in the corresponding period previous fiscal.

Sales of the company during the last quarter of fiscal 2007-08 touched Rs 360.20 crore, compared to Rs 256.67 crore in the same period a year ago.

The company accredited the recent increase to better volumes, improved realization, cost reduction and higher plant output. These all are the factors, which assisted it report better operational numbers despite a significant appreciation of the rupee against major global currencies.

The company’s board, at its meeting held on May 12, recommended a dividend of 150% or Rs 3 per Rs 2 share, against Rs 3 per share including special dividend of Rs 1 per share last year.

Besides, the board has also given its permission to expand the graphite electrode manufacturing capacity by 10,500 tonnes at the Durgapur plant in West Bengal, at a cost of Rs 187.50 crore.

At present, the company has a total electrode capacity of 78,000 tonnes — 60,000 tonnes in the country and 18,000 tonnes in Germany.

The company exports about 70% of its graphite electrode production.

It also said that the share of EAF steel in overall production is anticipated to increase from existing levels of 34% to about 38% by the next three years (2010).

The company's hydel plant in Karnataka has done well, as have the impervious graphite equipment (IGE) and glass reinforced plastic (GRP) pipes and tanks divisions, it said.

The shares of the company, on Monday (May 12) declined 2.4%, to settle at Rs 60 on the Bombay Stock Exchange (BSE).