Tirupati Graphite PLC (LSE:TGR), a graphite producer and graphene developer, said its gross profit rose 66% in the year to end March 2021, helped by a full year of commercial production from its Sahamamy facility in Madagascar.
Gross profit jumped to £635,342 from £381,678, the company said in a trading results statement. It plans to release its audited results for the year on or before September 17.
Revenue grew 42% to £1.12mln as production increased 30% to 1,718 tonnes and sales volume shot up 54% from the previous year.
“Despite the impacts of the COVID-19 pandemic which affected the company's operations during a substantial part of the year, the Sahamamy facility remained operational throughout, although with related challenges which impacted on total capacity utilisation of the facility during certain periods,” it said.
The average selling price it received for its graphite showed a slight reduction which was attributable to reduced market prices in the first three quarters due to the impact of the pandemic and the strengthening of sterling against the US dollar during the year.
“The company remains on track and with its recent capital raise of £10mln in April 2021, is in a sound financial position to deliver on the current phase under its medium-term development plan which will see its production capacity in Madagascar increased up to 12,000 tpa [tonnes per annum] in the immediate term and up to 30,000 tpa in the next financial year,” it said.