Tirupati Graphite Faces Challenges in Production and Sales
Shares in Tirupati Graphite have taken a hit, dropping 15%, as the company encounters obstacles in its production and sales growth due to working-capital constraints. The company, however, remains determined to find a solution to this issue.
Diminished Growth Impacting Shares
As of 0816 GMT, shares have dipped by 2.50 pence to 14.50 pence. This decline comes as Tirupati Graphite reports that its revenue has more than doubled, reaching $4.0 million in the first half-year ended Sep. 30 compared to $1.4 million the previous year. The impressive increase in revenue is attributed to a rise in production from 1,731 million metric tons to 4,508 million metric tons.
Working-Capital Constraints Hampering Production and Sales
Despite the positive revenue growth, Tirupati Graphite admits that its potential for further expansion is stymied by working-capital limitations. As a result, the company is actively seeking alternative sources of funding to bridge the working-capital gap and make additional investments.
Seeking Financial Solutions for Growth
Chairman Shishir Poddar expressed his optimism, stating that "the debt markets are getting increasingly buoyant for critical-mineral development opportunities in Africa." This suggests that Tirupati Graphite is confident in finding the necessary financial support. In addition, Poddar anticipates a surge in graphite demand in the near future, which will create a significant supply deficit and drive investments in the mineral.
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